Bookmaker Paddy Power has reported that its pre-tax profits more than doubled to €42.7m in the first half of 2007, helped by favourable sports results. The company also raised its profit outlook for the full year.
Total revenue grew from €105m in the first half of 2006 to €143.8m. Chief executive Patrick Kennedy said there was strong growth in every division.
Profits at Irish betting shops more than doubled to €22.5m, while online profits rose 53% to €14.8m and telephone profits moved up 27% to €4m. Paddy Power also said its UK shops made a trading profit for the first time, though there was a loss of €500,000 after costs of closing a shop were taken into account.
The company referred to a string of 'apparently unlikely' results, including a number of fancied Irish horses losing at big race meetings such as Cheltenham. It added that the poor weather in July and August had resulted in more racing upsets - and better results for the bookies. As a result, it lifted its operating profit outlook for the year from €62m to €68m.
Paddy Power said it had bought four shops in the first half of the year - three in Dublin and one in Mullingar, while it had acquired a chain of four in north Dublin since June 30. It has introduced online financial spread betting and a Spanish language business
Earnings per share doubled to 70.6 cent while a 70% higher interim dividend of 16 cent will be paid.
Shares in Paddy Power closed up €1.35 at €24.35 in Dublin this afternoon.
