Paddy Power Betfair has published its first set of interim results for the first half of the fiscal year ended on June 30th, 2016. According to the company’s official statement, there was a massive increase in the revenue generated over the period, as well as a double-digit growth in its four major divisions.
The Chief Executive Officer of the company Breon Corcoran commented on Paddy Power’s performance over the above-mentioned period and said that the bookie had managed to sustain “good momentum” over the first half of the year, which was a period “of considerable change”.
According to Mr. Corcoran, most of the company’s restructuring was already complete, and the merger aims were being reached even earlier than initially expected. The CEO explained that the company had been aimed at exploiting the unique assets and capabilities of each of its businesses, with a particular focus on marketing, technology and trading.
In addition, Paddy Power’s boss described the environment of the industry as “highly competitive”, but he shared his delight that the bookmaker managed to keep its strong market position, as well as enhanced capabilities and increased scale which would help it maintain stable and profitable growth in the future.
The Irish bookmaker revealed that its net revenue rose by 18% from £642 million in the first half of 2015 and reached £759 million. As announced in the statement published on its website, all four core divisions generated a double-digit growth over the first six months of the fiscal year.
The revenue posted by the online operations of the company increased by 20% and was estimated to £440. The Australian division‘s revenue rose by 17% and reached £129 million, while the US revenue reached £43 million after a 16% increase. Paddy Power Betfair’s revenue from retail operations increased by 12% to £147 million.
According to the company’s statement, its underlying operating profit rose by 39% to £148 million. In comparison, it amounted to £106 million over the first six months of the previous fiscal year. Still, an operating loss of £48 million was announced after merger-related items.
Paddy Power said that its underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 31% year-on-year to £181 million. According to the company, this also added to the positive performance over the first half of the year.
- Author
Olivia Cole
