Gambling operator Paddy Power Betfair plc today announced its first half-year financial results as a consolidated business enterprise. The company completed its merger on February 2, 2016, thus forming one of Europe’s and the world’s largest gambling powerhouses with presence on multiple continents and across multiple channels.
The operator generated revenue of £759 million during the six-months ended June 30, 2016, reflecting an 18% increase from the figure reported for the same period of the previous year. Paddy Power Betfair registered growth across all four divisions it manages.
Revenue from online gambling operations increased 20% year-on-year to £440 million. Sportsbook stakes during the period were up 20%. The growth was generally attributed to the UEFA Euro 2016, with the greater part of the major football championship taking place within the half-year reported.
The Paddy Power and Betfair online sports betting and gaming brands as well as a telephone-based sportsbook and B2B partnerships constitute the gambling operator’s online business.
Revenue from Australian operations increased 17% during this year’s first half to reach £129 million. Sports betting stakes from the division were up 30%. Paddy Power Betfair operates the Sportsbet online betting brand in Australia.
UK Retail revenue amounted to £147 million during the six months in review, up 12% from the prior-year period. Sportsbook stakes rose 10% year-on-year. The gambling company manages 600 Paddy Power-branded betting shops across the UK and Ireland.
Last but not least, revenue from US operations totaled £43 million, reflecting a 16% increase. TVG, known to be a leading US horse racing TV and betting network, the New Jersey online casino brand Betfair Casino, and the recently launched exchange wagering platform Betfair New Jersey Exchange are the three US brands operated by the major gambling company.
Underlying EBITDA increased 31% during the reported period to £181 million. Paddy Power Betfair generated underlying operating profit of £148 million during this year’s first half, reflecting a 39% rise from the first half of 2015.
The gambling operator said that post-merger integration is progressing ahead of initial plans and that most of the related actions have already been completed. Paddy Power Betfair also noted in its half-year report that the full benefit of the predicted £65 million in cost synergies resulting from the merger will likely be achieved in 2017, or a year ahead of what has originally been predicted. Of its full-year performance, the company said it expects underlying EBITDA of between £365 million and £385 million.
Commenting on the posted results, Breon Corcoran, CEO of the gambling group, said that it has maintained a good momentum despite being in a period of important changes taking place. The official said that they will remain focused on creating a world-class operation by taking good advantage of the capabilities and assets of each of the two former businesses, particularly in the field of technology, trading, and marketing.
The executive added that despite the highly competitive and challenging industry environment, Paddy Power Betfair is in an excellent position for a continued growth, mainly due to its “strong market positions, increased scale, and enhanced capabilities.”
