Irish gambling operator Paddy Power announced its financial results for the first half of the year ended June 30, 2015. Net revenue increased 25% year-on-year with a double-digit growth in both its retail and online divisions.
Operating profit amounted to €80 million, up 33% year-on-year or 68% before the amount of €32 million was contributed in newly imposed taxes and product fees.
The company’s online operations generated net revenue of €345 million, up 34% as compared to the figures posted for the same period a year ago. Sportsbook increased 42% and eGaming was up 14%. Operating profit of €70 million was posted for the six months ended June 30, up 45% year-on-year.
Excluding Paddy Power’s online operations in Australia, net revenue amounted to €200 million, up 26%. Sportsbook grew 37% and eGaming increased 14%. Operating profit totaled €31.6 million, up 21%, despite the newly introduced taxes.
The operator’s online operations in Australia are represented by Sportsbet. Net revenue from sportsbook increased 46% to reach €151 million. Operating profit of €38.8 million was posted, up 69% as compared to the first half of 2014.
Net revenue in Italy rose 24% due to key operational improvements. Operating costs decreased 19% and operating loss was reduced to €4.7 million.
Net revenue from Paddy Power’s UK retail operations increased 21%. Operating profit grew 3% to reach €12 million despite the negative effects from the new machine regulations and the €2 million in additional Machine Gaming Duty, introduced earlier this year. Paddy Power currently operates 336 shops across the United Kingdom, with 13 of those being launched during the period in review.
Net revenue from Irish retail operations was up 14%. Operating profit amounted to €10.6 million, up 36%. The company runs 252 betting shops in the country and 7 of those were launched in the first half of 2015.
Commenting on the company’s performance, Chief Executive Andy McCue said that they have made considerable progress in implementing their new strategy, which was introduced in March. He pointed out that further payback came from the release of new mobile products, refreshed advertising campaigns, as well as efficiency gains. Paddy Power expects full-year operating profit to be ahead of the figures reported for 2014.
