Dublin-based Paddy Power Betfair announced the results for the first quarter of this year, with company's revenue up by 23% to £416 million.
The three month period ended on March 31, and the company said the growth was mostly driven by sports betting revenue. This is quite clear when you compare last year's sport revenue, which rose from £254 million to £326 million – a hefty increase of 28%, whereas the game revenue recorded a much smaller increase of 6% to £90 million.
Sportsbook stakes went up by 18% (9% in constant currency), with sportsbook net revenue recording an increase of only 1.3%. The biggest culprit for this result was the Cheltenham Festival, or to be more precise, the fact 19 of 28 races were profitable.
£397 million came from regulated markets, which is 24% more than in the same period of 2016.
The company's underlying earnings before interest, taxes, depreciation, and amortization were £111 million, a staggering 87% more than last year.
Online and Retail
The same pattern can be observed when it comes to online results. The revenue recorded an increase of 15%, mainly due to a 33% raise in sportsbook revenue.
Online gaming revenues also recorded an increase, but the result of 2% is still below the high expectations of the company.
Retail revenue went up by 23% to £82 million, and is expected to grow even further, since five new shops were opened during the first quarter (4 in the United Kingdom, 1 in Ireland).
Chief Executive, Breon Corcoran, said the key strategic focus for this year was the integration of the in-house developed technology platforms. He added the project had already started and would be completed by the end of the year.
About Paddy Power Betfair
Paddy Power Betfair is a well known name in the business of sports betting. The company was created in February 2016 by the merger of Paddy Power and Betfair. The company is owned 52% by the former Paddy Power shareholders and 48% by the former Betfair shareholders.
Today, it has four divisions. Online division operates Paddy Power and Betfair, two of the Continent's leading brands. Retail division operates a total of 618 betting shops in the United Kingdom and Ireland.
Two remaining ones are based in Australia and the United States.
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