Paddy Power Betfair: first interim results were strong
By David Baxter 7:32AM 24 AUG 2016
Paddy Power Betfair posted their first set of interim results since merging in February, with the betting giants delivering double-digit revenue increases across all four sectors.
Created on February 2, Paddy Power Betfair reported a revenue increase of 18 per cent to £759 million for the six-month period ending June 30.
EBITDA (Earnings before interest, taxes, depreciation and amortisation) grew 31 per cent to £181m, notwithstanding a £37m (31 per cent) increase in marketing spend.
Underlying operating profit rose 40 per cent to £105m.
Online revenue was up 20 per cent to £440m, while retail revenue increased 12 per cent to £147m. There was also gains of 17 per cent (to A$ 129m) in the Australian sector and 16 per cent ($ 43m) for the US arm of the company.
Merger progressing well
The merger integration is well ahead of schedule, with cost synergies of £65m expected to be achieved next year, a sizeable increase on the £50m target.
Looking forward, Paddy Power Betfair expect to reach EBITDA of between £365 and £385m for the full year.
Chief executive Breon Cocoran said: “Paddy Power Betfair has sustained good momentum through a period of considerable change. The restructuring is now largely complete and the merger synergies are being delivered ahead of schedule.
“We are creating a world-class operation by exploiting the unique assets and capabilities of each legacy business, particularly in the key functions of technology, marketing and trading.
“While our industry remains highly competitive and is exposed to the prevailing economic and regulatory environments, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth”