Paddy Power profits rise 14%

Bookmaker Paddy Power reported a 14 per cent rise in full-year operating profit last year as its online services drew more punters from shops to screens.

A 31 per cent rise in full-year revenue pushed operating profit to €136 million from €119.5 million a year ago, slightly less that the €138.5 million forecast by eight analysts surveyed by Thomson Reuters.

The Dublin-based group, whose operating profit rose by 25 per cent in a first half of the year that included the Euro 2012 soccer tournament, said it has now captured over a quarter of the fast-growing mobile sports betting market, around double its share of the total online market.

"Mobile has been very, very good for us in the last year. Our net revenue in mobile is up 185 per cent to €129 million, it's now €32 per cent of our online revenue," chief financial officer Cormac McCarthy told Reuters in a telephone interview.

"Month to month, we're seeing mobile as being stronger and stronger and that's thematic for the business."

On a constant currency basis, the rise in operating profit was just six percent and the group warned that a continuation of current sterling and Australian dollar rates could reduce operating profit by around €10 million this year.

Paddy Power, which has entered betting markets in Australia, France, Canada and most recently Italy, said trading since the end of last year had benefited from favourable sports results with revenues up 19 per cent.

That mirrored British rival William Hill, which saw revenue rise by 20 per cent in the first two months on favourable results as it paid £424 million (€492 million) for full control of its online business.

Reuters