Good full year Paddy Power performance

Land and online gambling group Paddy Power plc has released its preliminary FY2015 results for the period ended December 31 2015, pointing out that these metrics were achieved prior to the Betfair merger which came into effect in February 2016.

However, the announcement also includes Betfair third quarter results for the three months ending 31 January 2016 (‘Q3 FY16’), representing the period immediately prior to completion of the merger, and proforma 2015 information for the combined group for the year ended 31 December 2015.

Paddy Power 2015 highlights include:

Group:

* Revenue up 24 percent to Euro 1,094 million, with double digit growth across all online and retail divisions;

* Operating profit up 10 percent to Euro 180 million, or 50 percent before Euro 66 million in new taxes and product fees;

* Diluted EPS up 12 percent to 332.8 cents per share;

* Full year dividend up 18 percent to 180 cents per share; additional Euro 8 per share cash return during 2015;

Online highlights:

* Revenue growth of 23 percent, with sportsbook up 28 percent and e-gaming up 10 percent. Operating profit up 11 percent to Euro 152 million.

* Online (ex Australia): revenue up 12 percent; operating profit of Euro 73 million up 48 percent before Euro 54 million of new taxes;

* Online Australia: revenue up 43 percent and stakes up 39 percent; operating profit increased 54 percent to Euro 80 million;

* Mobile revenue accounted for 68 percent of online revenue, with 80 percent of active customers transacting via mobile.

Retail highlights:

* UK Retail revenue up 15 percent (up 6 percent like-for-like). Operating profit of Euro 23 million up 12 percent before Euro 5 million of additional machine gaming duty. Estate now 341 shops with a net 20 units opened in 2015;

* Irish Retail revenue up 14 percent (up 11 percent like-for-like). Operating profit of Euro 20 million up 44 percent. Estate now 259 shops with 14 units opened in 2015.

Betfair ‘Q3 FY16’ highlights:

* Revenue up 21 percent to GBP 138 million, driven primarily by 51 percent growth in sportsbook stakes and improved football results;

* Revenue in regulated markets up 31 percent following a 27 percent increase in the number of active customers;

* EBITDA1 up 10 percent to GBP 26 million, or 30 percent growth before GBP 5 million in new taxes.

Breon Corcoran, chief executive o the merged Paddy Power Betfair plc said in a stock exchange statement:

“We were very pleased to complete the merger of Paddy Power and Betfair, creating one of the world’s largest online betting and gaming companies with enlarged scale, enhanced capability and distinctive complementary brands. These results show that both businesses entered this merger on the back of strong trading momentum.

“Our belief in the strategic rationale for the deal has only been strengthened following our early days as a combined operator. The combination of two industry leading operators, with aligned strategies and a strong cultural fit, is hugely exciting and the enhanced efficiency from operating at greater scale means we are well positioned to compete in both existing and new markets.

“The integration of the two businesses is progressing well and we look forward to capitalising on the opportunity we have to drive future profitable growth.”

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