Double-digit growth for Paddy Power Betfair

While the merger has left the betting giant with a £47.5m loss, the future looks bright...

Paddy Power Betfair saw its revenue rise by 18% to £759 million (€885m) during the six-month period to June, as its time as a combined entity gets off to a strong start.

Double-digit growth could be found in all four of its divisions – online, UK and Irish retail, the US and Australia. Its operations Down Under now deliver one-sixth of all group revenues.

In a period of strong sporting activity, including the European Championships, the value of sporting bets rose by 20%. Online revenue also saw a 20% jump, up to £440m for the period.

The betting company, which completed its £6bn merger on February 2nd, reported that its underlying operating profits jumped by just under 40% to £147.6m.

An operating loss of £47.5m was posted.

This, however, was due to a £195.1m charge which the group said was almost entirely as a result of the merger.

According to chief executive Breon Corcoran, the group’s merger integration is ahead of plan.

He said:

“Our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth."

Paddy Power Betfair is now expecting to achieve £65m in annualised cost benefits – up from £50m – and to deliver them in full by 2017, a year earlier than originally planned.

The group also announced that Stewart Kenny, co-founder of Paddy Power and CEO until 2002, is stepping down from the board.