Sliding pre-tax profits for Paddy Power


Although turnover soared, profits declined.

The Irish online and land betting group Paddy Power felt the pain of weaker Irish and UK economies and a run of results that favoured the punter last year, it revealed as it posted its 2009 numbers this week.

Despite a hefty increase in turnover of over a third, the company suffered a slide in pre-tax profits of 15 percent compared with FY 2008, recording a decline to Euro 67.2 million (FY 2008: Euro 79 million) on turnover that soared 36 percent to Euro 2 752 million (FY 2008: Euro 2 101 million).

The betting company invested over Euro 10 million more on advertising than it did in 2008, growing active sportsbook customers by 21 percent over the 2008 advances, with total amounts wagered up by 32 percent as online sportsbook bet volumes rose 55 percent.

Management's faith in Internet gambling continued to be vindicated as online operations posted a record profit of Euro 45.7 million, 7 percent up on FY 2008, accounting for an impressive 75 percent of the group’s full-year operating profit, compared to just 57 percent in 2008.

The profit problem was the number of times punters won on sports bets, which resulted in an overall reduction in group gross win of some Euro 29 million over the year.

Strategically speaking, the company enjoyed a good operational year, expanding into Australia through IAS and Sportsbet and gaining access to the soon-to-be-liberated French market via a canny B2B deal with state monopoly Pari Mutuel Urbain.

Business appears to be looking up, according to chairman Nigel Northridge, who said that trading in the current year had so far been satisfactory despite bad weather in the UK.

General Gambling News

Login to post a comment:


 
 

Click Here to register a new account

What's going on right now!

2mins ago someone from United States played The Three Musketeers

Casino Community

Share this page on:
Follow LCB on:
Follow LCB

Casino Of The Month

Casino of the Month

In the last 24h

Totals

  • New Members
    30
  • Members Online
    401
  • Guests
    1,729
Highest Community Rated Online Casinos
SlotsMillion
  (100 Ratings)
32 Red Casino
  (365 Ratings)
Guts Casino
  (205 Ratings)
Club USA Casino
  (297 Ratings)
Mr Green Casino
  (314 Ratings)
Buzzluck Casino
  (185 Ratings)
Lucky Red Casino
  (237 Ratings)
Videoslots.com
  (176 Ratings)
BETAT Casino
  (222 Ratings)
NextCasino
  (175 Ratings)
Bet365 Games
  (196 Ratings)
Unibet Casino
  (165 Ratings)
CasinoLuck
  (246 Ratings)
Betsson Casino
  (240 Ratings)
Betsafe Casino
  (220 Ratings)
Redbet Casino
  (175 Ratings)
ComeOn Casino
  (283 Ratings)
Spin Palace Casino
  (131 Ratings)
Casino Extreme
  (185 Ratings)
Intertops Red Casino
  (140 Ratings)
Slotty Vegas
  (129 Ratings)
Vera John Casino
  (199 Ratings)
Thrills Casino
  (160 Ratings)
Slotland
  (346 Ratings)
Hello Casino
  (95 Ratings)
Ladbrokes Casino
  (167 Ratings)
Liberty Slots Casino
  (215 Ratings)
Win A Day Casino
  (364 Ratings)
Casino Saga
  (115 Ratings)
Mummys Gold
  (143 Ratings)


Follow LCB on Facebook Follow LCB on Twitter Follow LCB on Pinterest Follow LCB on Google plus