Paddy Power Betfair, a newly merged online gambling company, reported growth across all its brands in Q1 and released a trading update covering the three months with pro forma figures, allowing more accurate comparisons with their previously standalone operations.
Overall group revenue increased by 16% to £339m, while earnings increased by 27% to £59m and operating profit rose by 36% to £43m. Breon Corcoran, group CEO, said that all four of the company’s brands; Paddy Power, Betfair, Sportsbet and TVG, have started 2016 on a good note, especially with the internal chaos surrounding the post-merger integration.
Online revenue was up by 17% to £195m in total, with a topping of £135m in the sports revenue due to a rise of 23% in stakes, while exchange and B2B revenue increased by 5%. Online gaming revenue was also up by 17% to £60m, with mobile gaming climbing 43% and now claiming 56% of total gaming revenue.
Sportsbet’s online sports stakes went up by 31% to £577m with a 42% improvement of active customers. Adverse sports results, however, kept revenue to £58m (+25%). The company says that its online in-play sports app was responsible for the strong growth in ‘telephone’ staking.
Betfair US reported a revenue increase of 22% to £20m due to the 19% growth at TVG as well as the progressive growth at Betfair’s New Jersey-licensed online casino. Betfair US will launch America’s first licensed exchange wagering platform on May 10th in conjunction with Monmouth Park, a local racetrack partner.
With sports up by 3% and gaming machines increasing by 8%, Paddy’s retail revenue rose by 5% to £67m.
Corcoran said that this year’s Cheltenham Festival has enriched Paddy Power Betfair customers by £20m, adding that Cheltenham alone was responsible for a 1.5 point negative movement in the company’s sports margin.