Paddy Power online revenues surge 36%

Paddy Power this morning revealed that “substantial targeted investment” in product and brand had driven a 36% increase in net online revenues during the period 1 January to 11 May 2015.

In its interim management statement, the Irish operator highlighted the launch of partial cash-out on PaddyPower.com, and cash-out and fingerprint login in Australia as key strategic milestones reached during the period.

And the operator said its product and brand investment strategy had the gretest impact in Australia, where total stakes grew 42% and net revenue 44%.

In the UK and Ireland, sports betting net revenue grew 43% year-on-year, “helped by the largest YoY gross win percentage rebound” among its divisions.

Despite an increase in customer win due to “unfavourable” sports results, sports betting stakes increased 13% during the period.

Mobile continued to grow and accounted for 63% of total online revenues during the period while proprietary games drove gaming net revenue growth of 17%.

“Differentiated product alongside distinctive brands and marketing capability, are at the core of our strategy to win,” the firm said. “In Australia, we have increased our brand investment to target the current state of flux amongst competing brands,” it added.

Paddy’s also noted that chairman Nigel Northridge would be stepping down at the end of H1, and would be replaced by Gary McGann who joined the board last year.

Paddy Power’s share price was up 0.72% this morning to €78.55.