Small revenue rise for Paddy Power Betfair after tough 2018
Paddy Power Betfair reported a 9% increase in revenue to £1.9bn ($2.4bn) for 2018, in a challenging year for the operator.
Underlying EBITDA was £451m, a 5% decrease.
As with most gaming operators, Paddy Power Betfair’s share price fluctuated throughout the year. On 6 March 2018, the price was £8.20, peaking at £9.10 on 30 May, and opening today at £6.25.
May’s peak is likely to be a result of the FanDuel acquisition, which was announced earlier that month.
Paddy Power Betair reported proposed full year dividend of 200p, equating to a pay-out ratio of 53%.
Online revenue rose 5% for the operator, with revenue from the Australian market increasing 6% and rising 18% in the US.
Within its full year report, Paddy Power Betfair disclosed its four-pillar strategy to achieve success.
The operator says it will continue to focus on core markets and rigorously pursue new, fast growing, regulated markets.
The operator also announced plans to rename the group to Flutter Entertainment. It plans to seek shareholders’ permission for the change at its upcoming annual general meeting.
Peter Jackson, Paddy Power Betfair CEO, said: “Paddy Power has regained its mojo, taking share following product improvements and some of our “classic” marketing. Betfair, our unique combination of product that appeals to customers around the world, will be improved by our ongoing investments in languages and localisation.
“The opening of the US online sports betting market has the potential to be the most significant development to occur within the sector since the advent of online betting. Rather than announcing our plans, we have moved quickly to give ourselves the best chance to win in that market. We are confident that FanDuel’s nationally recognised sports brand, eight million customers, our group betting expertise, and our market access partnerships position us very well.”
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