Australia offsets Paddy's sportsbook decline
Operator's Australia arm provides boost after 27% year-on-year fall in European sportsbook revenues
Strong growth in Paddy Power’s Australia business helped the operator record a modest 1% year-on-year growth in total online revenues, after the company’s non-Australia sportsbook revenues fell by more than a quarter in a trading update released today.
The company’s Australia-facing Sportsbet subsidiary performed well, recording a 38% increase in online net revenue and a 22% rise in amounts staked for the 1 January to 11 May period.
But outside of Australia online sports betting net revenues decreased 27% year-on-year during a period in which the Irish operator said it had suffered “the two worst weekends ever for football profitability” in January and March.
Amounts staked increased by 19% and egaming and B2B net revenues fared better in the period with a 12% year-on-year increase in net revenues, but overall the company posted a 14% year-on-year drop in European online net revenues for the period.
Paddy Power chairman Nigel Northridge said the company was pleased with its recent performance as it targets renewed growth with increased future investment.
“Last year was a year of continued significant investment in product, marking, technology and people, in line with our long term strategy, and we are further increasing that investment this year,” he said.
The operator’s latest results were released at the same time firm announced its chief executive Patrick Kennedy is to leave the firm next April after 10 years at the helm.
Paddy Power’s share price was down 2.44 to 56.81 after early morning trading.