Paddy Power Betfair (PPB) said that restructuring related to its merger is “largely complete” as it reported double-digit growth in revenues and profits for the first half of 2016.
In a trading update that covered the period up to June 30, during which the merger completed in February, PPB said net revenue increased by 18% year-on-year on a pro-forma basis to £759 million, while underlying EBITDA was up 31% to £181 million.
Underlying operating profit was up 39%, while the company said it experienced double-digit growth in all four divisions. Online revenue was up 20% to £440 million, with retail growing by 12% to £147 million. Sales in Australia and the US grew by 17% (£129 million) and 16% (£43 million) respectively.
However, costs relating to the merger of around £195 million pushed it to a pre-tax loss of £49 million for the period.
From an operational point of view, PPB said the merger integration is “progressing ahead of plan with the majority of actions already completed”. It added that it is now expecting cost synergies of £65 million to be achieved in 2017, a year earlier than originally envisaged and greater than the initial estimate of £50 million.
Revenue was up 20% to £420 million during Q2, which included a “strong Euro 2016 performance”.
Chief executive Breon Corcoran said: “Paddy Power Betfair has sustained good momentum through a period of considerable change.
“The restructuring is now largely complete and the merger synergies are being delivered ahead of schedule.
“While our industry remains highly competitive and is exposed to the prevailing economic and regulatory environments, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth.”
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