Paddy Power Betfair operating profit up in first quarter in operation

Paddy Power Betfair has reported a 36% year-on-year operating profit increase to £42.5m for the three months ended 31 March, the first quarter that the merged group was in operation.

The merger completed in February and the results were reported on a pro forma basis, as though Paddy Power Betfair had always been in operation.

Overall net revenue rose by 16% to £339m, while online net revenue was £195m, up 17%.

Sports net revenue was £254m, showing an upturn of 16% and EBITDA was £59.1m, up 27%.

Paddy Power Betfair said sports revenues were affected by adverse sports results in the quarter this year as well as last year, notably at this year’s Cheltenham Festival in March, where customers’ net winnings was over £20m.

The results of Paddy Power and Betfair will no longer be reported separately, with the only field where one brand was singled out was US revenue, which increased 22% to £20m and is only operated in by Betfair.

That means that the last understanding that could be gauged as to which brand contributes the most net revenue was in the last financial report, where Paddy Power’s full year 2015 figures and Betfair’s three months ended 31 January 2016 numbers were reported.

Paddy Power’s full year 2015 net revenue was £1.09bn and net revenue for the group in the same period was £1.32bn.