Irish gambling operator Paddy Power Plc posted its interim statement for the period between July 1-November 15, 2015, adding that it expects to report full-year profit of €180 million for 2015. The company said that it will announce its full-year financial performance sometime in the first quarter of 2016.
Paddy Power further noted that its results for the second half of 2015 were completely in line with original expectations, despite the recorded unfavorable sports results, with those affecting its industry competitors as well. Officials for the gambling company said that they were happy with the posted results for the period in review, especially given the tough comparative period from the previous year. During the second half of 2014, there was high wagering activity that was driven by the FIFA World Cup.
Paddy Power’s overall group net revenue increased 9% in the second half of 2015. Revenue from online operations, excluding Australia, dropped 3% year-on-year. Australian operations posted a 24% increase in total net revenue.
The operator’s UK retail business registered a 9% growth in total net revenue. During the second half of 2015, Paddy Power opened 21 new betting shops in the UK, 2 of which were acquired. Irish retail operations posted a 4% increase in overall net revenue. Paddy Power launched 14 new betting shops in Ireland during the reported period, 10 of which were acquired.
As for its merger with Betfair, Paddy Power said today that all the necessary filings have been submitted to the concerned regulatory bodies. New documentation on the £6-billion deal is to be published in the weeks to come.
The proposed merger cleared last week its last regulatory hurdle as Ireland’s Competition and Consumer Protection Commission backed it. The regulator said that the deal will not “substantially lessen competition in any market for goods or services in the State.”
The merger is expected to be completed next week, thus creating major gambling operator Paddy Power Betfair, which is expected to generate more than £1.1 billion in annual revenue and £50 million in pre-tax cost savings. The combined entity will be headquartered in Dublin and Paddy Power will own a 52% stake in it. Prior to the merger, Paddy Power shareholders will receive a special dividend of €80 million.
