PMU bucks poker trend as horseracing decline continues
Poker gross gaming revenue up 19.5% as economic plight blamed for poor domestic racing performance
Former French monopoly Pari Mutuel Urbain (PMU) has bucked the industry trend for poker by reporting a 19.5% increase in gross gaming revenue (GGR), with strong growth in sports betting also helping to offset continued decline in domestic horseracing.
Poker GGR reached 21.6m as PMU maintained its position as the third largest poker operator in the country in a year where the French poker market endured a poor 2013 with providers such as Barriere Poker ceasing operations.
Sports betting continued the increase reported in Q3 with GGR up 20.7% year-on-year to 38.5m with PMU accrediting the rise to the renewed popularity of Ligue 1 football in the 2013/14 season.
Total amounts staked on football rose 22.4% for the year to 199m.
PMU’s total group revenue for the year fell 0.9% to 10.4bn, however GGR increased 0.6% to 2.5bn and PMU president and director general Philippe Germond said digital innovations had helped the company continue to grow despite unfavourable economic conditions.
“The strategic choices in 2012 and 2013 and the continued growth of sports and poker in France, have contributed to the overall good performance,” Germond added.
In contrast the PMU’s core horse racing business stalled with stakes down by 1.8% year-on-year to at 9.6bn despite a 94% increase in international racing stakes aided by the company’s acquisition of Eurotierce Belgium.
Stakes placed on domestic races fell 5% to 8.9bn, with the company attributing the decline to customers constrained by the country’s continued bleak economic outlook.