Bookmaker Paddy Power today said its move into online gambling had proved a winner as it revealed a 58 per cent hike in annual profits.
The betting company said its move into activities such as an internet casino and mobile phone games helped reduce its reliance on the more volatile sports betting business.
However, a late run of sporting results in favour of punters meant record pre-tax profits of €32.1 million were still at the lower end of analysts' forecasts.
The company said turnover rose by 27.5 per cent to €1,165 million.
The online division delivered an "outstanding" performance in the year to December 31st, contributing €8.8 million in operating profits.
Chief executive Mr John O'Reilly said: "While all strands of the business performed well, I am particularly pleased that the online business has come of age."
The Dublin-based group, which has 143 shops in Ireland, also said it would continue its expansion into the UK. The company currently has 31 UK sites and said it hoped to have between 45 and 50 by the end of 2005.
The core retail division posted a slight rise in operating profits to €17.8 million as it was hit by start-up losses in the UK.
Paddy Power said it believed the UK losses had now peaked and that the estate would trade profitably in 2005 and beyond.