Paddy Power online revenues up 42%
Irish bookie reports growth across all major markets and divisions as sportsbook net revenues leap 49% in the 20 weeks to November 16
Paddy Power this morning revealed online net revenues for the second half of 2014 were running 42% ahead of last year after favourable sports results drove 59% growth in its UK and Ireland-facing sportsbook division.
In an Interim Management Statement for the period 1 July to 16 November, the Irish bookmaker reported strong growth across the board with sportsbook net revenues across the entire digital business up 49% and egaming/B2B net revenues up 20% year-on-year.
Its core UK and Ireland-facing paddypower.com business saw sportsbook net revenues grow by 59% after benefitting from what the operator described as “the largest year-on-year gross win percentage rebound amongst our divisions”.
UK and Ireland sportsbook stakes were up by 14%, but revenue jumped 59% compared to the previous year, while egaming/B2B rose by 19% and total active customers increased by a third (33%).
In Australia, online net revenues were up 41%, stakes up 21% and active customers up by 37% with the numbers boosted by a “strong performance” at the recent racing Spring Carnival.
Paddy Power’s Italy-facing paddypower.it site posted a 72% increase in net revenues during the period while mobile channels contributed 58% of revenues across all markets.
Numis Securities analyst Ivor Jones praised the results but said the likely normalisation of recent favourable sports results and future regulatory challenges provided reasons for caution.
“This excellent trading statement highlights the quality of the Paddy Power machine, helped along by favourable sporting results,” Jones said.
“It will be harder to maintain this rate of progress into next year we believe in the face of additional, duty and race field costs and regulatory challenges to gaming machines in UK shops,” he added.
Total group net revenues, including the company’s retail division, were up 38% year-on-year while the company said it was debt free with a cash position of 206m excluding customer balances.
Paddy Power’s share price remained relatively unchanged this morning at 61.68.