Unfavourable sports results impact Paddy Power results

Irish gambling firm Paddy Power reports a good underlying performance but a negative impact from unfavourable sports results in its latest interim management statement for the period July, 1 to November 17, 2013.

Key performance indicators include:

–   Group sportsbook amounts staked up 14 percent.

–   Group net revenue up 7 percent.

–   Online (ex Australia) sports turnover is up 15 percent and eGaming/B2B net revenue has grown 17percent.

–   Australian online turnover growth has accelerated 26 percent and online net is up 30 percent.  Total net revenue increased 23 percent.

–   Italian average monthly sportsbook stakes increased by 84 percent in September to October.  Holds an estimated marketshare of around 8 percent.

–   Retail sportsbetting turnover up 5 percent.

–   Mobile delivered 47 percent of Paddy Power’s online revenue.  63 percent of the firm’s active customers transacted via mobile in October.

–   As of November 17, 2013 net cash amounted to Euro 253 million, or Euro 171 million excluding customer balances and no debt.

As experienced in its previous report, unfavourable sports results have continued and further reduced gross win versus Paddy Power’s expectation by around Euro 10 million.  The company expects to achieve low to mid single digit percentage operating profit growth in 2013 before currency translation.

Paddy Power.com has achieved double digit growth in both sports turnover and eGaming net revenue in the UK online market without increasing marketing spend and despite increasing competition.

Mobile remains at the core of Paddy Power’s growth strategy as the company continues its rollout of a series of in-house developed, mobile device optimised products over the coming months.

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