Profits at Paddy Power up 15% in first six months

PROFITS AT bookmaker Paddy Power increased 15 per cent to €57 million in the first half of the year as returns from all businesses bar its Irish betting offices increased during the period.

Paddy Power won a total of €242 million from its punters in Ireland, Britain and Australia during the first six months of the year, an 18 per cent increase on the €206 million it earned during the same period in 2010.

Profits before tax in the first six months were up 15 per cent to €56.8 million from €49.4 million during the first half of last year. Earnings per share rose 18 per cent to 97.1 cent from 82.2 cent.

The company is proposing to pay its shareholders an interim dividend of 30 cent a share, a 20 per cent increase on last year.

Paddy Power operates betting offices and online, mobile and telephone betting services in Ireland and Britain and is Australia’s biggest online operator through its local subsidiary, Sportsbet.

Its online businesses contributed over 80 per cent of its profits, and chief executive Patrick Kennedy pointed out yesterday that all divisions bar its Irish betting offices increased profitability during the first half of the year.

Mr Kennedy said that 81 per cent of its profits during the period came from its internet and mobile betting operations.

A record 13 Irish winners at the Cheltenham national hunt racing festival helped dent returns from its 209 shops in the Republic.

The actual amounts staked by Irish betting shop customers during the first half grew slightly, to €483 million from €476 million.

However, its winnings dipped to €51 million from €55.5 million, leaving it with operating profits of €5.1 million, 44 per cent less than the €9 million it reported from this division last year. The dip in the win margin to 10.5 per cent from 11.7 per cent was down to “adverse sports results” and in particular Cheltenham.

Operating profits at Sportsbet in Australia, were up 15 per cent at €9.8 million, thanks to a 5 per cent increase in winnings to €47.7 million from €41.8 million.

Its Australian customers numbered 131,000 in the first half, up 15 per cent from 114,000 during the same period last year. They staked a total of €642 million during the period. This was 1 per cent higher than in the first half of 2010, indicating that the average bet size fell during the period.

Sportsbet is the official betting partner of Fox Sports Channel in Australia in a deal that covers Australian rules football, rugby union and tennis.

Operating profits from Paddypower.com, which excludes Australia, were up 26 per cent at €36.5 million. The total amount staked jumped 43 per cent to €771 million. The win margin was 7.4 per cent. The company won €47.7 million from punters during the period.

Its UK betting shops also delivered a strong performance. Operating profits were up 59 per cent at €4.7 million from €3 million. Amounts staked were up 34 per cent at €177 million. Total winnings, including gaming machines, were €32.7 million.

Paddy Power now has 151 shops in its UK estate, putting ahead of its target of 150 outlets by the end of this year.