Power Leisure today reported an annual operating profit of €8.5 million, down almost 20% from the previous year, after taking into account start-up losses of €9.1 million on its online operations. Pre-tax profits were down from €10.9m to €9.1m.
The group, which trades as Paddy Power Bookmakers, said its annual turnover for 2001 increased by €98.3 million to a record €461.1 million - an increase of 27%. It said that trading in the early part of the year had been positive and it predicted another year of growth in 2002.
Turnover at Power Leisure's licensed betting offices grew by 17.7% to €370.7 million resulting in an operating profit of €16.6 million - up 30.5%. The group continued to expand its LBO operations with the addition of eight new outlets, seven in Ireland and one in the UK.
Telephone betting turnover increased by 40.9% to €55.5 million. This gave an operating profit of €1 million - up 10.9%. The group's telephone betting service Dial-a-Bet continued to expand during 2001 and ended the year with 25,582 registered customers. The UK service was launched last October.
Online turnover recorded a massive 401% increase to €34.8 million. The gross margin in this division improved to 7.7% in the second half of the year from 4.5% in the first six months of 2001. The online activities continued to expand in 2001 with the launch of paddypower.co.uk in May and interactive television services.
In its results statement, Power Leisure said the Irish Licensed Betting Office market remains its core market and it continues to see further growth opportunities within it. It added that the telephone business is well positioned for further growth, both in Ireland and the UK.
Power Leisure shares closed down five cent in Dublin at 4.30.
* Chairman John Corcoran announced this morning that he would retire at the end of the year, but will remain on as a Non-Executive Director. The company's CEO Stewart Kenny will then assume the position of Chairman. The process of recruiting a new CEO is now underway.
