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Paddy Power Betfair hails sports revenue growth in Q3

| By iGB Editorial Team
Paddy Power Betfair has cited growth within its sports wagering business as the main reason behind year-on-year revenue growth during the third quarter

Paddy Power Betfair has cited growth within its sports wagering business as the main reason behind year-on-year revenue growth during the third quarter.

Overall revenue for the three months through to September 30 came in at £440m (€502.7m/$584.7m), which represents an increase of 9% on the corresponding quarter last year.

Group sportsbook revenue was up 11% year-on-year to £360m, while sports stakes also increased 18% to £2.86m, despite the lack of a major national team football tournament during the quarter.

Elsewhere, group gaming revenue increased by 2% year-on-year to £90m, and although the firm noted a 3% drop in online revenue to £216m, retail revenue was up 12% to £85m.

Group underlying earnings before interest, tax, deprecation and amortisation came in at £121m, up 7% on the previous year, while underlying operating profit also increased 5% year-on-year to £101m.

Paddy Power Betfair also paid tribute to the performance of its international businesses during the third quarter, with both its Australia and US divisions posting year-on-year revenue growth.

In Australia, revenue was up 35% to £111m, while in the US, revenue increased by 18% to £28m.

Breon Corcoran, chief executive of Paddy Power Betfair, who will exit the role in the new year, said: “Q3 was an encouraging quarter for Paddy Power Betfair, with good stakes growth despite the absence of a major football tournament.

“Our international businesses performed particularly well; in Australia, the winning combination of innovative product and marketing excellence continued to deliver exceptional results, with revenue up 29% while US revenue was up 18%.

“Paddy Power retail also continues to outperform the market through its sports-led proposition and is well positioned to respond to regulatory changes.

“The integration of our technology platforms is nearing completion, and in 2018 customers will start to benefit from an increased pace of new product delivery across our Betfair and Paddy Power brands.”

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