Merged Paddy Power Betfair cites sports growth as revenue rises

Merged Paddy Power Betfair cites sports growth as revenue rises

Paddy Power Betfair just announced a year-on-year increase during the last three months up to September. This was driven by the growth of their sports betting business.

The third quarter revenue summed up to £404 million, which currently represents a 15% rise in constant currency and 25% increase.

Sportsbook stakes climbed 14% in constant currency and 26%. This was due to the boost from the EURO national football tournament in 2016.

Underlying EBITDA was up by 53% to £113 million. The increased margin was of 28%, and the underlying operating profit was over 68% to £95 million.

According to the presentation of the results, the growth of this newly formed sportsbook has been mainly driven by mobile, as it currently accounts for 76 percent of revenues. The total number of the customers which are presently active is above three million. This is 17% over last year. However, there may be some form of double counting since there is no information on the customers who had accounts with both of the companies.

The merger of Paddy Power Sportsbook and Betfair happened earlier this year, yet the partners stated that according to their forecast they will achieve full year results which will be even better than they expected. This will amount to underlying EBITDA between £390 million and £405 million. This is in an aftermath of the company’s performance in the third quarter.

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