International Online Innovations Push Up Paddy Power Profits

Online betting and gaming have helped Paddy Power deliver a 17 percent uptick in revenue for the first quarter of 2019.

Paddy Power Q1 revenue

Paddy Power chief executive Peter Jackson is smiling after another profitable quarter. (Image: Racingpost.com)

Publishing its Q1 report on May 2, Paddy Power not only noted improvements at home but abroad.

In fact, it was the company’s ventures in the US and Australia that provided “excellent growth” according to chief executive Peter Jackson.

Sports Stumble but Revenue Soars

Delving into the details, revenue from Sportsbet and FanDuel helped offset unfavourable sports betting results in the UK.

In Australia, Sportsbet delivered a very strong quarter with revenues increasing by 20%. In the US, FanDuel Group is making huge progress, driving a Q1 New Jersey sports betting market share of 50%,” Jackson explained.

In tandem with surging US and Australian sports betting activity, gaming revenue was also up. Comparing like-for-like, Q1 2019 takings were 26 percent higher than the same period in 2018.

Between this and 15 percent year-on-year growth for sports betting across the group, Paddy Power’s outlook is bullish.

In fact, as it stated back in 2018, the recent changes to fixed odds betting terminals (FOBTs) won’t hit its bottom-line as hard as other operators.

Paddy Power Showing FOBT Cuts Don’t Hurt

In August of last year, the Irish company played up the strength of its high street betting shops.

Our shops are more profitable and outperform on sports betting, enabling them to better withstand the impact of lower machine stakes limits,” reads the August 8 statement.

Despite touting its credentials, Paddy Power was forced to remove certain betting machines from its shops in April. Although it argued the games weren’t an FOBT workaround, it ultimately capitulated after pressure from the UK Gambling Commission (UKGC).

Even if its recent live innovations have fallen flat, Paddy Power believes the future is bright. With its online assets exceeding expectations, any FOBT flops should prove insignificant.

Based on the latest report, other UK operators should be lifted by their rival’s success. With William Hill and GVC looking to expand their digital interests, Paddy Power has shown the online market is buoyant.

As long as others embrace change, FOBT cuts may not run as deep as some expected.

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