Paddy Power reports profit surge

Irish bookmaker Paddy Power revealed an impressive increase in half year profit and revenue following strong online growth and a robust performance in Australia following its investment last year.

Pre-tax profit rose to €68.7m for the six months ended 30 June 2012 from €56.8m the same time a year before. Operating profit advanced 7 per cent at €48.5m.

Diluted EPS rose 25 per cent to 121.5 cent, despite some adverse sports results since its May trading update, the group explained.

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Net revenue grew 29% in constant currency with double-digit growth in every division. Gross profit increased to €264.9m from €200m the previous year.

Paddy Power incurred start-up losses of €6.3m in the period after four new online ventures. It has net cash of €186m.

The group said the second half of the year has started well as it continues to invest at an increased rate for expansion.

Its new mobile and tablet-led casino product Roller, BetDash and a product called Cayetano are expected to contribute to revenue in the second half of 2012.

Commenting on the results, Chief Executive Patrick Kennedy said: "Revenue growth in our existing businesses has accelerated with a 29% increase and each of the divisions achieving double digit growth."

The group has launched into the Italian online market and three further new revenue streams set to contribute in the second half of the year, he added.

"With our Online and Retail divisions both continuing to deliver substantial growth and our expansion plans progressing, we are confident in the Group's prospects for the rest of the year and beyond."

Interim dividend increased by 30% to 39.0 cent per share.

CJ