Irish gambling operator Paddy Power, which merged its operations with fellow gaming company Betfair last month to form Paddy Power Betfair, posted information about its financial performance in 2015. The company also reported Betfair’s financial results for its last quarter as an independent business ended January 31, 2016. Both operators performed quite well during the reviewed periods.
Paddy Power saw full-year revenue increase 24% year-on-year to reach €1.1 billion. Despite the recently introduced additional gaming taxes, the Irish gambling company reported growth in annual operating profit as well. It increased 10% to €180 million. Paddy Power said that it would have reported a 50% growth in operating profit, if it were not for the said new taxes.
The company’s UK Retail division reported a 15% increase in annual revenue. Operating profit was up 12% year-on-year before the Machine Gaming Duty to reach €23.4 million. Its Irish Retail business saw revenue rise 14% as compared to the figures posted for the previous year. Operating profit from the division amounted to €20.3 million, up 44% year-on-year.
Revenue generated by the operator’s Online business increased 23% in 2015. Proceeds from sportsbook offering were up 28%. Online gaming posted a 10% growth last year as compared to the revenue generated in 2014. Online operating profit totaled €152.4 million, up 11%.
Paddy Power said that Australia was its largest market in terms of generated operating profit in 2015. Profit contributed by its division accounted for 44% of the overall figure posted. It amounted to €79.5 million.
During its last quarter as an independent entity, Betfair generated revenue of €179 million, up 21% year-on-year. Earnings increased 10% in the reported period to reach €33.6 million. As for the company’s performance during the previous calendar year, revenue grew 17% and operating profit was up 9% (63% if it were not for the new taxes).
Paddy Power Betfair CEO Breon Corcoran commented that the posted results show that both operators entered the merger “on the back of strong trading momentum.” The executive further noted that the integration of the two company’s operations has been progressing well and that they are all looking forward to driving future growth and delivering on the initially announced cost savings of up to £50 million per year.
