Paddy Power Betfair Revenues Increase
Paddy Power Betfair have released their first financial report since the two bookmaking giants merged back in February. The joining together of the two brands consequently created the world’s largest listed online gambling company. As the two companies have not been merged very long, they released the figures separately with Paddy Power unveiling its full-year figures for 2015, and Betfair revealing its third-quarter results for 2016.
The Irish bookmaker had double digit growth with revenues of almost €1.1 billion, an increase about 25% on 2014, while Betfair’s third quarter figures showed revenue increasing 21% to £138 million. The report also shows that Paddy Power’s profits were dented by roughly €10 million worth of one-off items, including incurring over €5 million in costs associated with the Betfair merger.
The former Chief Executive of Betfair and now Chief Executive of Paddy Power Betfair, Breon Corcoran, commented that: “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.”
He maintains that “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.”
Paddy Power’s chairman, Gary McGann, has stated that “the merger has created one of the world’s largest online betting and gaming companies with enlarged scale, market leading capability and distinctive, complementary brands. On a proforma basis the enlarged group had £1,318m of revenues and £229 million of underlying operating profits for the year ended 31 December 2015. Our online businesses contributed 80% of Group revenues and 87% of operating profits.”
Shares in Paddy Power Betfair have noticeably increased in value. Many financial commentators believe that Paddy Power Betfair is definitely a share investors should own. Thanks to its attractive marketing and continued growth, it looks set to be a winner in a gambling industry undergoing uncertain transformations.
