Late run leaves Paddy Power 52% ahead

Monday, 5 March 2007 17:34

Bookmaker Paddy Power has reported pre-tax profits of €47.6m for last year, up 52% on the 2005 figure and better than most analysts had expected. Turnover was up 31% to €1.8 billion.

Adjusted earnings per share rose 45% to 78.6 cent and a 56% higher dividend of 32.3 cent has been declared.

The company said there was strong growth in turnover across the group, helped by the World Cup and the introduction of tax-free betting in Ireland.

Paddy Power said its gross win was up 36% to €219m, helped by an improved run of sports results, particularly towards the end of the year. There was a 64% increase in gross win from online gaming and fixed odds betting terminals (FOBTs).

FOBTs are available in UK betting shops, but the company ruled out their introduction in Ireland. Paddy Power said it would be interested in becoming involved in casinos in Ireland, but would await clarification of the Government's position on regulation of the sector.

A breakdown of the results showed that Irish telephone betting turnover grew by 23% last year while the betting shop business was 18% ahead and made a 56% higher profit of €22m. Online turnover increased by 60%, while profits in the non-retail sector increased by 43% to €29.4m.

Paddy Power now has 58 shops in the London area, but said its focus in 2007 would be on improving their performance rather than opening a substantial number of new shops. Its UK betting shop turnover grew 43% to €123m, but losses grew by 29% to €6m.

Shares in Paddy Power were down 10 at €17.15 in Dublin this afternoon.