Paddy Power Betfair reports 18% revenue rise
Paddy Power Betfair has posted its first set of interim H1 results, highlighting a rise in revenue of 18%, to £759m, and double-digit growth across its four core divisions.
Underlying operating profit grew 39% to £148m for the six months ended 30 June 2016, although an operating loss of £48m was recorded after merger-related items.
Online revenue for H1 was up 20% at £440m, while sportsbook stakes also grew by 20%.
Retail revenue jumped 12% to £147m, while takings from Australia and the USA experienced growth of 17% and 16% respectively.
A 31% year-on-year increase in underlying EBITDA added to the positive outlook presented by the H1 results, growing to £181m.
The operator also revised its expected timeline for achieving cost synergies of £65m to 2017, a year earlier than originally planned.
Breon Corcoran, CEO of Paddy Power Betfair, said: “Paddy Power Betfair has sustained good momentum through a period of considerable change.
“The restructuring is now largely complete and the merger synergies are being delivered ahead of schedule.
“We are creating a world class operation by exploiting the unique assets and capabilities of each legacy business, particularly in the key functions of technology, marketing and trading.
“While our industry remains highly competitive and is exposed to the prevailing economic and regulatory environments, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth.”
In related news, the operator has announced that Paddy Power co-founder Stewart Kenny is stepping down as a non-executive director of its board.
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