Pretax profit climbs at Paddy Power
Pretax profit at Paddy Power rose 21 per cent and revenue increased as the group saw growth in each of its divisions.
In the six months to June 30th 2012, the company said profit before tax was €68.7 million, despite what it described as “adverse” sports results since its May trading update.
Its online division continued to perform strongly, with new revenue rising 41 per cent to €191 million and operating profit 7 per cent higher at €48.5 million.
The group also invested in expanding the division, incurring startup losses of €6.3 million in four new online ventures. Paddy Power said its new mobile and tablet-led casino product and brand Roller, sports betting based social game BetDash, and a Cayetano developed gaming product would contribute to revenue in the second half of 2012.
In the retail business, profit in the Irish sector was up 70 per cent to €9 million as sports results normalised. Stakes were 3 per cent lower on a like-for-like basis. In the UK, operating profit was 61 per cent higher to €7.6 million. Like-for-like sportsbook stakes rose 12 per cent, and machine gaming net revenue was up 5 per cent.
Chief executive Patrick Kennedy said the six month period had been a strong one for the group, and it was confident of the group’s prospects for the year.
The group’s interim dividend rose by 30 per cent to 39 cent per share.