Mobile sports betting drives growth at Paddy Power

Mobile betting growth of 112% and a launch in Italy helped Paddy Power to a 29% year-on-year rise in online revenues in the period from 1 January to 12 May 2013.

Net revenue rose by 30% outside of Australia and 28% in Australia, which Paddy Power chairman Nigel Northridge put down to a 33% rise in active customers and the continued success of its mobile division.

“The strengths of both businesses are being complemented by leading positions in mobile betting, with that component of revenue up 112% to an industry leading 42% of total online revenue,” Northridge said at the Irish firm’s AGM.

In comparison William Hill reported mobile represented 35% of its online sports betting revenues in Q1 2013 in its last results, with growth of 145% in the period.

Gaming and B2B revenue rose by 21% in the period, although Paddy Power did not break down the numbers for and individual sector and made no comment on mobile gaming growth.

Online sportsbook revenues excluding Australia rose 36% in the period with turnover up by just 19% as Paddy Power reported a run of good sporting results in the period.

“Sports results have been favourable overall, with the Group’s sportsbook gross win percentage above our normal expectations and above the equivalent period last year,” Northridge said.

And he added the firm benefitted from the inclusion of its Italian sportsbook revenues for the first time, which comprised 3% of net revenue growth in the period.

“Our online sportsbook market share increased to 6% in the first quarter of 2013, whilst we also significantly expanded our gaming product range in the last two months with the roll out of online games and a download live casino and our mobile casino going live this week,” Northridge said.

The launch of Paddy Power’s Italian business came during a period of growth for Italian sports betting, despite the Italian sector overall reporting flat revenues in its last reported period.