Paddy Power Betfair Bullish After Pre-Merger Profit Increases

Paddy Power Betfair's CEO Breon Corcoran happy.

Paddy Power Betfair’s CEO Breon Corcoran is looking forward to the future but warned that there is still work to do. (Image: businesspost.ie)

Paddy Power Betfair is bullish about its financial future, but the man at the top, Breon Corcoran, has insisted there is still work to do.

The £5 billion deal, which was originally agreed back in August 2015, was completed on February 2 when the new entity went live on both the London and Dublin stock exchanges.

An initial flurry of activity saw the new company end its first day of trading on the London Stock Exchange with a share price of £104.90 according to the Racing Post and since then its fortunes have continued to rise.

Pre-Merger Profits Were Positive

Earlier this week the company produced its full year accounts for Paddy Power (not Paddy Power Betfair) and, despite increased gambling taxes in the UK, annual revenue hit €1.1 billion (£852 million) for a 24 percent increase in revenue.

That figure which was buoyed by a 23 percent increase in online revenue and the overall gain translated into an 8 percent rise in pre-tax profits.

As well as reporting an increase in revenue at Paddy Power, the new company also published the 2015 Q3 results for Betfair which showed revenue growth of 21 percent thanks, in part, to improvements with its online sportsbook.

Commenting on the positive conditions that preceded the merger, Paddy Power Betfair’s CEO Corcoran explained that with both companies entering the merger on the up, he’s looking forward to continued growth in the coming months.

“The integration of the two businesses is progressing well and we look forward to capitalising on the opportunity we have to drive future profitable growth,” explained Corcoran.

However, as positive as the outlook is for both companies, Corcoran also warned that that is more work to do as he is dealing with “two big, complicated business.”

UK Welcomes a New iGaming Supplier

While two veterans of the UK gambling world are looking forward to life as a new entity, a relative newcomer to the iGaming market will be hoping to achieve a fraction of Paddy Power’s and Betfair’s success over the next few years.

At the start of March, Contagious Gaming was granted an iGaming licence by the UK Gambling Commission in addition to the licence it already held for pool betting facilities (a form of sports betting where players enter a pool and compete against each other and not a bookmaker).

With its new licence, Contagious Gaming will now be able to offer sports betting on live events as well as casino options.

“The licence allows the company to deploy and operate a comprehensive set of online gambling products, including virtual sports, casino and live-in-play sports book on a white-label and direct basis,” said the CEO of Contagious, Peter Glancy.

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