PADDY POWER PROFITS AND REVENUES RISE DESPITE TOUGH IRISH MARKET - Paddy Power's 2011 results show a 16% increase in pre tax profits to €121.2m. The bulk of the increase was thanks to the company's expanding online gambling enterprises. It claims a more than 30% growth in what it describes as active online customers. A grand total of €4.55 billion was staked, an increase of 19% on 2010 resulting in net revenues of just under 4500m, up 17% on the previous year.
Paddy Power's chief executive Patrick Kennedy says that Ireland continues to be a tough market for the company, but that growth outside the country is more than compensating for this. Customers numbers are up 50% in the UK, with its online partnership in France also doubled its market share during the year. Mr Kennedy said that Paddy Power entered the markets in Bulgaria and Canada last year and now plans to enter the Italian market, which he says is the biggest gambling market in Europe.
On the gambling habits of Irish people, Mr Kennedy says that fweer people are placing bets, while amounts staked are also falling. He says that 300 shops in the industry have closed since 2008 and the Irish market is down about 25-30% in the last few years.
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FBD MARKS A RETURN TO PRE-TAX PROFITS - FBD Holdings, the general insurance company that is still Irish owned, has reported almost €60m of pre-tax profits for 2011. The company had reported pre-tax losses since 2008. Last year's profits were achieved despite a small reduction in gross written premium income to €351m. But favourable weather conditions and a low level of large claims have helped the company along side better claims management and charging more for insurance.
FBD's chief executive Andrew Langford says that 2011 was a very good year for the company after a number of challenging years for both FBD and the general insurance industry. He says that more and more customers are choosing FBD as it continues to target the more urban markets. But Mr Langford has mixed news for consumers, saying that the 2% government levy on insurance companies will be passed on to customers, adding that he expects the levy to remain for the next ten years. But he says that premiums are mainly driven by the cost of claims, and these are falling. After the severe weather conditions in recent years, household insurance premiums did rise, but Mr Langford says there is signs of stablisation now.
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BUSINESS BRIEFS - China's annual parliamentary session - the National People's Congress - opened last night with a speech from the Premier, Wen Jiabao, to some 3,000 delegates from across the nation. He cut the country's annual growth target to 7.5% for 2012 - down from the longstanding goal of 8% - and said "expanding consumer demand" was his first priority. Mr Wen pledged to vigourously adjust income distribution, increase the incomes of low and middle-income groups, and enhance people's ability to consume. In his speech, Mr Wen also said farmers' land rights were 'property rights' that should "not be violated".
*** On the currency markets, the euro is worth $1.3182 US cents and 83.31 pence sterling.
