Irish gambling operator Paddy Power released its trading statement for the period January 1 to May 11. The group announced that its overall net revenue grew 26% year-on-year, with sports betting net revenue up 21%.
Paddy Power pointed out that the weak Euro gave the operator a boost during the period in review and helped it offset the effects that the newly-introduced taxes and regulations had on the industry. On a non-constant currency basis, the group’s net revenue increased 35%.
Paddy Power’s online business posted a 24% rise in sport betting stakes and a 36% one in overall net revenue. The considerable increase was mainly attributed to the company’s Australian operations. Online stakes in Australia rose 39% and a 43% net revenue growth was reported.
In the UK and Ireland, online sports betting net revenue increased 43% year-on-year. A 13% growth in sportsbook stakes and a 17% one in eGaming net revenue were posted.
Paddy Power’s Italian online business reported a 23% increase in net revenue. The company is currently implementing certain operational improvements there, such as increasing brand awareness as well as cost efficiencies. It is also planning to further improve both its sportsbook and eGaming products.
As for the operator’s retail operations in the UK, those posted a 7% increase in sports betting stakes, a 15% one in sports betting net revenue, and a 10% one in machine gaming net revenue.
Paddy Power’s Irish retail operations reported a 7% growth in stakes and a 10% one in net revenue. The increase was attributed to the newly-introduced legislation which permitted betting shops to be accepting customers in the evenings.
During the period in review, a total of 8 new Paddy Power shops opened doors on the territory of the UK. Furthermore, the operator purchased 2 new shops in Ireland.
The group pointed out that as of May 2, its net cash amounted to €347 million. Excluding customer balances, it totaled €265 million. In addition, the operator said it had no debt.
Meanwhile, Nigel Northridge, Chairman and non-executive director of Paddy Power, announced that he is to step down from his posts at the end of this year’s first half. He has served on the Board over the past 11 years.
Mr. Northridge is to be succeeded by Gary McGann as Chairman of the company’s Board. Last year, Mr. McGann was appointed as non-executive director.
