Paddy Power profit reaches record levels after Betfair merger

paddy power - credit qptech.ie

Credit: qptech.ie

Irish bookmaking giant Paddy Power made a record profit of €180 million in 2015.

Boosted by the announcement of a merger with Betfair, the world’s largest internet betting exchange saw Paddy Power recorded highs in both revenue and profit.

The €180m operating profit was an increase of 10 pc on the 2014 figure of €163.8m. A 24% rise in revenue took PP revenue above €1bn. The company recorded total revenue of €1.094bn.

In total Paddy Power had a turnover of €8.46bn from it wagered stakes indicating a massive surge in popularity of gambling. Turnover rose 23 pc on the 2014 figure of €7.1bn.

CEO of Paddy Power Betfair Breon Corcoran said “We were very pleased to complete the merger of Paddy Power and Betfair, creating one of the world’s largest online betting and gaming companies, these results show that both businesses entered this merger on the back of strong trading momentum” adding that “it is crucial that we don’t disrupt the momentum of the existing businesses. This is particularly relevant as the merger completed at the start of a key trading period that encompasses the Cheltenham Festival, Aintree and the Euro 2016 football championships.”

Massive growth in Paddy Power’s Australian operations saw it account for 44pc (€79.2m) of operating profit making it more profitable than the UK for the first time.

Despite the record levels of revenue and profit customer numbers actually dropped three pc on 2014, there were also 12 pc less new accounts opened in 2015. The 2014 World cup in Brazil was responsible for a massive spike in customers last year.

In true Paddy Power fashion their 2014 accounts were titled “the year Paddy Power saved the Earth.” If they’re to be believed then 2015 could be seen as the year Paddy set himself up for world domination by merging with a betting Goliath to form a €10bn worldwide gambling conglomerate.

The Paddy Power Betfair merger which was announced last month will bring together over 4.2 million online customers and over 600 shops across the UK and Ireland. The merger makes Paddy power Betfair the second largest bookmakers in 2015 in terms of online revenue behind the Bet 365 group.

Paddy Power has blossomed since the introduction of online and mobile gambling with over €5.8bn being staked online throughout 2015. Mobile betting accounted for 68pc (€3.94bn) of online stakes with over 80pc of customers availing of Paddy Power’s mobile apps.

These record figures for Paddy Power Betfair just go to show that the old adage “the bookie always wins in the long run” is more true than ever.

Niall Connolly

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