Today, Paddy Power Betfair published its trading update for the third fiscal quarter which ended on September 30th. The company praised its stability over the period and raised its full year profit outlook, saying that its earnings before interest, taxes, depreciation and amortisation (EBITDA) would be in the range from £390 million to £405 million. In comparison, the previous guidance provided by the operator ranged from £365 to £385 million.
The Chief Executive Officer of Paddy Power Betfair Breon Corcoran commented on the company’s performance over the three-month period, explaining that the quarter was good for the Group. He also confirmed that the company intended to primarily focus on bolstering its combined operation by taking advantage of the assets and capabilities of both Paddy Power and Betfair brands. According to Mr. Corcoran’s statement, the company also planned to work on improving its customers service.
The Group’s boss also added that the bookmaker would continue to work on making a multi-brand, multi-channel and multi-jurisdictional platform by combining the two brands in the best way possible, as it was aimed at unveiling its full potential. According to Mr. Corcoran, this would lead to increasing the overall pace of development, which on the other hand would have a positive impact on new products’ release.
In its trading update dated today, Paddy Power Betfair revealed that its total net revenue generated over the third quarter increased by 25% year-on-year, reaching £404 million. In comparison, the total net revenue which reported by the bookmaker for the same period a year earlier amounted to £324 million.
The Irish bookmaking operator also revealed that there was a 27% increase of the net revenue generated by its sports betting operations, which rose from £249 million in 2015 Q3 to £316 million in the third quarter of 2016. On the other hand, there was also an increase in the net revenue generated by the company’s gaming operations. The latter’s net revenue rose by 16% and reached £88 million. In comparison, the result posted a year ago amounted to £76 million.
The company shared that the revenue generated from regulated markets accounted for a total of 96% of the total revenues generated over the three-month period.
The Online division of Paddy Power Betfair boosted its revenue by 20%, with the latter reaching £222 million thanks to the increase in stakes. The company also shared that there was a 19% increase in its retail revenue which reached £76 million. The performance of its Australian and US units was also excellent, as both divisions managed to report a revenue increase. The Australian subsidiary of Paddy Power Betfair boosted its revenue by 21% in local currency, while the US division’s revenue rose by 4% in local currency.
Paddy Power Betfair also reported that its underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) more than doubled over the three-month period ended on September 30th. The figures rose by 53% from £74 million a year ago and reached £113 million in 2016 Q3. The underlying operating profit, on the other hand, increased by 68% year-on-year from £57 million to £95 million.
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Olivia Cole
