Paddy Power Betfair expects full-year growth despite unfavourable sports results

Paddy Power Betfair has said that despite unfavourable sports results during the fourth quarter, it expects full-year revenue to increase by 18% year-on-year.

In a pre-close trading update, the operator said total revenue for the 12 months to December 31, 2016, should amount to approximately £1.55 billion (€1.8 billion/$1.93 billion), up from £1.3 billion in the previous year.

Sports revenue looks set to increase by 19% year-on-year to £1.12 billion, while gaming revenue should climb 14% to £353 million.

The firm also noted that sportsbook stakes for the full-year are likely to jump by 24% to £9.89 billion, up from just under £8 billion in the previous year.

In addition, the operator said that group underlying earnings before interest, tax, depreciation and amortisation should come in at the mid-point of its guided range of between £390 million and £405 million.

Paddy Power Betfair revealed its forecasted full-year results alongside those for the fourth quarter, during which it expects revenue to increase by 10% year-on-year to £388 million.

Sports revenue is expected to rise 12% to £299 million, after sportsbooks stakes hiked 28% to £2.67 billion, with gaming revenue also on track to increase 6% to £89 million.

The sports growth comes despite the firm having suffered from unfavourable results in the quarter, with customer-friendly results estimated to have cost the company £40 million in Q4 alone.

Paddy Power Betfair plans to post its preliminary full-year results on March 7.

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