Paddy Power profits up 55 percent

The online and land betting group Paddy Power has posted a strong set of results for the year ending December 2010, showcasing a pre-tax profit of Euro 104.2 million, a rise over 2009 FY of 55 percent.
Revenues for the year were up 39 percent to Euro 3.834 billion, mainly thanks to a successful second half.
Almost two-thirds of the Irish company’s profits were generated outside of Ireland last year, making it the third largest online bookmaker and sixth largest online gaming business in Ireland and Britain.
And remarkably, almost three-quarters of Paddy Power’s profits were generated online. The number of Internet active players grew by 56 percent to 838,083 in 2010.  Active customers across the group increased by 44 percent, with a 56 percent growth in UK customers. Sportsbook punters grew by 45 percent, and gaming clients by 48 percent.
This year saw a full contribution from the group’s Australian operations, which delivered operating profit of Euro 19.5 million, with mobile revenues up three- fold as a third of sportsbetting came through this channel.
Online gross win jumped by 88 percent to Euro 250 milion. Online operating profits rose by 52 percent to Euro 75 million.
The Irish retail division reported operating profits up 8 percent at Euro 17.6 million, with the division making up 17 percent of total group profits. In the UK retail division operating profits soared almost six-fold to Euro 7.4 million and the company predicted that it will have more shops in the UK than in Ireland by 2013.
Group marketing spend was around Euro 50 million. Management said that group expansion into Europe would continue.
Investors will be pleased with the 29 percent rise in the final dividend proposed by management. “These are record results for Paddy Power, with increased profits for all divisions,’ commented the company’s chairman Patrick Kennedy. “They demonstrate the benefit of our ongoing business development initiatives and investment, which position the group well for further growth in 2011 and beyond.”
Kennedy went on to reveal that the new year had started well, with turnover up 16 percent and total gross win up 38 percent to end February on the comparative period in 2010.
Chief executive officer Breon Corcoran said that by preference the company operated in clearly regulated legal markets, which offer more certainty.
Earlier, Paddy Power announced that it was withdrawing from the spread betting sector and would be closing its Paddy Power Trader operation. Trader clients will apparently soon be invited to move over to LCG.

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