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.
“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.