Australia pushes Paddys to record yearly profits
Online and mobile revenues grow, though new online ventures incur start-up losses of more than 20m.
A strong performance from its Australian business has driven Paddy Power profits to an all-time high, the operator has revealed in its preliminary results for the year ended 31 December.
It is the first full year to include figures from Sportsbet, the Australian-licensed company acquired in early 2011, and operating profit from the region came in at 30.8m, a 35% increase year-on-year.
The figure represented 22.1% of group profits, which rose 15% year-on-year to 139.2m, while group revenues rose 25% compared to FY 2011 following revenue increases in all of the operator’s divisions.
However Paddys did note that its four new online ventures, including mobile casino brand Roller and social betting venture BetDash, incurred 20.5m in start-up costs between them over the course of 2012.
Nevertheless, mobile continued to flourish in general terms, with the channel now contributing 32% of group online revenues after a 185% year-on-year increase to 129m.
The year saw Paddy Power unveil a number of new mobile offerings, not limited to Roller, while recent months have seen the introduction of new iOS apps for the Paddy Power Vegas and Paddy Power Games brands.
Overall group turnover also rose strongly, climbing 25% year-on-year to 5.7bn following a strong showing in retail as well as online, with CEO Patrick Kennedy (pictured) noting: “Payback from ongoing investment continued to deliver growth across the Group.”
Kennedy also acknowledged the rise in the number of active online customers, a figure which has almost doubled since 2010, however he acknowledged that “Current exchange rates, if they continue, could reduce operating profits by approximately 10m this year.”
Last year also saw Paddy Power enter Italy, where its sports betting market share reached the 5% mark by the end of the year, and Kennedy said: “We’re well positioned in attractive and growing markets through sustained investment and strong capabilities and, as a consequence, look forward to 2013 and beyond with confidence.”
The company has also announced that David Power, a non-executive director and one of Paddy Power’s founders, will retire from the board following the 2013 AGM.