Paddy Power annual report 2014 is out

Paddy Power’s 2014 annual report, presented in a typically irreverent and entertaining style, is now available, showcasing impressive results with over half its action now online, but recording the demise of the Paddy Power In-Play Facebook app, social gaming product Betdash and the Roller mobile casino.

New chief executive Andy McCue said the products hadn’t panned out as the bookmaker hoped.

“Inevitably, innovative ideas won’t all work, and in this context, we have decided to discontinue our secondary products and brands, Betdash, Paddy Power In-Play… and Roller,” he reported to shareholders.

Highlights of the report included:

* Record turnover of Euro 7 billion – 16 percent up on 2013.

* Revenue up 18 percent to Euro 881.6 million.

* Operating profit of Euro 164 million in 2014.

* Pre-tax profits of Euro 167 million – up 18 percent.

* Operating profit growth of Euro 26 million up 19 percent at Euro 163.8 million despite a Euro 11 million hit due to new taxes, increased product fees and currency translation.

* Operating profits in the Online Australia division soared by 56 percent to Euro 52.4 million, while operating profits in Online operations excluding Australia rose by 3 percent to Euro 75.3 million.

* EBITDA up 20 percent at Euro 211.8 million.

* Disappointing sporting results resulting in only marginal improvement.

* EPS up 18 percent at Euro 297.6 cents and a total dividend up 13 percent of Euro 1.52 per share, along with a special cash back dividend of Euro 8 per share.

Net cash on hand at the end of 2014 was Euro 285 million.

The company’s outlook is optimistic for 2015, with sportsbook stakes already up 18 percent y-o-y in Online and 8 percent in Retail.

New taxes in the UK, EU and Ireland will have an impact in the coming, but have been provided for, and the company expects that if the current Euro depreciation rate continues it could boost operating profits by around Euro 5 million.

The full report is accessible here:

http://www.paddypowerplc.com/sites/default/files/attachments/pdf/ar_2014/Annual_Report_Full.pdf