Paddy Power’s growth is because of its Sportsbook success.
The Irish bookmaker, Paddy Power, has said that its Sportsbook operation is behind its recent success.
Indeed, the bookmaker reported a year-on-year jump in revenue in the six month through to June 30, 2014.
The company’s net revenue for the first half was €396.5 million. This is 4% higher than the €380.6 million that the company posted in the same period in 2013.
The bookmaker’s gross profit also increased by 1% to €320.6 million. At the same, net cash at the end of the period was €244 million, which is up from €214 million.
The main cause for this success was its sportsbook operation, which saw customers betting a total of €3.4 billion. This up 14% on the €3 billion they staked in the first half of 2013.
Furthermore, online active customers grew by 25%, and online customer acquisition increased by 35%.
Despite such success, however, Paddy Power’s operating profit suffered falling by 20% from €75.4 million in 2013 to €60.1 million in 2014.
The pre-tax profits also suffered, dropping by 20% to €61.6 million, while operating costs increased by 8% to €260.5 million.
These losses did not concern the chief executive of Paddy Power, Patrick Kennedy, who said that he is content with the result. Furthermore, he is confident of more growth.
He said: “The punter-friendly results in football and racing which impacted the gross win percentage in the initial six months of 2014 failed to put a halt to our gallop with strong underlying performance and accelerating top line momentum delivered in the period.
“For example, we acquired more new sportsbook customers on PaddyPower.com in these six months than in all of 2013.
“We had a cracking World Cup which generated stakes of almost €200m, 130% ahead of the previous tournament. The second half has started well with good stakes growth and a rebound in sports results.”
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