Bookmaking business Paddy Power Betfair (PPB) has posted its first set of interim H1 results, reporting group revenues of £759 million and recording double-digit growth across its four core divisions.
Closing its H1 period ending 30th June 2016, PPB posted a group underlying EBIDTA of £181 million, compared to the £138 million in the same period last year.
The increased top line metric growth lead to the business declaring an underlying operating profit of £148 million, compared to the £106 million in H1 2015.
Accounting for £195 million in accumulated merger costs, however, Paddy Power Betfair was pushed to a group loss of £48 million.
Issuing a strategic update, the FTSE100 listed business governance bumped up the firm’s post-merger synergy target to £65 million by 2017 from its original estimate of £50 million in combined group savings.
PPB governance reemphasised that the company had focused the H1 2016 period on implementing an ‘optimal operational structure’, concentrating on the key areas of combining its best assets, leveraging its enhanced scale, and optimising brand positions within the betting markets in Ireland and the UK.
It detailed that despite recording H1 losses, all its core divisions had recorded significant growth during the period. Group digital revenues hit £440 million, with sportsbook wagering up 20% following a strong performance in Euro 2016.
The firm’s strong combined digital performance was supported by Paddy Power retail, who recorded a revenue uplift of 12% to £147 million.
PPB governance further highlighted the firm’s strong international momentum, with its Australian division revenues up %17 to £129 million and US revenues up 16% to £43 million.
Issuing a trading update for 2016, PPB declared that it expects a full-year 2016 proforma EBIDTA guidance of between £365-385 million.
Commenting on the corporate performance in H1 2016, PPB Chief Executive Breon Corcoran 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”.