Bookmaker Paddy Power expects 2010 to be a "good year," buttressed by an expanding Internet betting business and accelerating growth in Australia, CEO Patrick Kennedy said.
Earnings from online gambling could rise to more than 80 per cent of profit "in the not too distant future" from two-thirds at the latest results, Mr Kennedy said in an interview at the company's Dublin offices yesterday.
He declined to give an earnings forecast for 2010.
Paddy Power is building up its Internet unit and increasing its overseas presence as a recession in its home market cuts betting shop wagers. In July, the company bought a 51 per cent stake in Sportsbet to expand into Australia.
Sales momentum there "remains very strong," the CEO said, adding the company is now able to secure UK stores on better terms as retailers exit the high street.
Paddy Power has gained 54 per cent in Dublin trading this year, compared with a 2.3 per cent gain by Harrow-England based Ladbrokes and a 17 per cent increase by London-based William Hill.
The company was downgraded to "equal-weight" from"overweight" by analysts at Morgan Stanley today. "The shares no longer look obviously cheap," Morgan Stanley analysts said in a note.
Bloomberg