Bookmaker Paddy Power posted a sharp leap in profits today after a run of sporting results went against punters.
The betting company, which is expanding its operations in Britain, saw pre-tax profits rise to €18.7 million for the first half of 2004, an increase of 158 per cent on the same period last year.
The results were helped by an unusually high rise in the gross win - the amount of punters' stakes retained by the company after winnings were paid out - of 69.4 per cent.
Turnover was €554.1 million, a rise of 22 per cent after sales from its retail estate rose by 25.1 per cent to €340.4 million and telephone betting turnover grew by 20.4 per cent to €105.8 million.
Paddy Power finance director Mr Ross Ivers said: "Results so far this year have constantly gone more in our favour than against. The Cheltenham Festival was more favourable, as was the Euro 2004 result, and some of the golfing majors were good for us."
Mr Ivers said the company did not expect the abnormally good results to continue over the second part of the year, but was very pleased with the figures and the success of the expansion into Britain .
"This business is all about cycles, and over the medium term we expect things to balance out. We had a poor run last year in the first half and a good run this year," he said.
The development of the company's British operation began 18 months ago and the company currently has 20 outlets open there.
It is on track to achieve 30 shops by the end of this year.
"Based on the success so far, we expect to be putting on 15-20 retail outlets a year in the UK," Mr Ivers added.
Paddy Power has 141 shops in Ireland, a telephone and online betting service, and an online casino which was introduced in March of this year.
At the end of last year, the company posted record annual results despite a winning streak by punters at the Cheltenham Festival and Grand National.
For 2003, Paddy Power posted pre-tax profits of €20.4 million, a rise of 14.5 per cent on the previous year.
PA