Paddy Power Profits Pushed to New Heights in 2015

Paddy Power profits increase year on year.

Paddy Power enjoys revenue increases across the board despite holding a net debt of €96 million ($102 million). (Image: Ian Georgeson/Scotsman. Com)

Irish eyes were smiling at Paddy Power HQ this week after the company revealed its profits have jumped by 23 percent in some areas during the last quarter.

Revealing its latest profits in a statement this week, Paddy Power is now looking to capitalise on this good fortune complete its £6.2 billion ($9 billion) merger with Betfair “in the coming weeks.”

Looking specifically at the stats, Paddy Power’s network of UK and Ireland betting shops banked 7 percent more money in the 19 weeks to November 2015 than it did in 2014.

Additionally, the amount staked on sports bets improved by 23 percent to push online sports betting revenue 7 percent higher than it was in the same period last year.

Growth at the Right Time for Paddy Power

Although this growth is in line with the company’s projections, the positive results have come at an opportune time for Paddy Power.

In addition to poor results in the online betting sector as a whole, Paddy Power now has a net operating debt of €96 million ($102 million) taken on to help secure the takeover of Betfair.

“While sports results in the period were unfavourable across the sector, for Paddy Power this has been offset by strong underlying growth,” said a spokesperson for Paddy Power.

Following the publication of these results, Paddy Power now expects to post an annual profit increase within the mid to high single digit percent range.

FOBTs Rake Billions

In other news, a new study from the UK Gambling Commission has shown that high street bookmakers are profiting to the tune of £125 ($190) per fixed odds betting terminal (FOBT) per day.

Extrapolated over the course of year, FOBTs are able to rake in an average of £46,000 ($70,000) in profit annually.

Lambasted by critics of the industry but lauded as the saviour of high street betting shops by others, FOBTs are rarely out of the news in the UK.

For the likes of Paddy Power this appears to be a positive thing as the FOBT industry in the UK is now worth an estimated £1.6 billion ($2.4 billion) per year.

The UK’s Prime Minister David Cameron had been expected to conduct a review of FOBTs; however, a last minute change of heart now means that operators can continue offering them in their current state.

This u-turn, combined with the latest report outlining the earning potential of FOBTs, is likely to spark more outrage from gambling awareness groups.

However, with the UK now charging online operators a 15 percent Point of Consumption Tax, it appears to be in the government’s best interest to give companies such as Paddy Power as many money making options as possible.

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