Paddy Power Betfair soars post-merger
Paddy Power Betfair saw revenues and profits soar during its “transformational” 2016.
In its preliminary results for the year to December 31, the combined group – created by last February’s merger – saw revenue up 18% to £1.55 billion ($1.9 billion / €1.8 billion), with double-digit growth across all four operating divisions.
The company reported underlying EBITDA up 35% to £400 million with EBITDA margin increased to 26% from 22%. Underlying operating profit increased 44% to £330 million.
Overall, the group reported a loss of £5.7 million which it said was “primarily due to expenses relating to the merger that have been recognised as separately disclosed items”. In addition, it added, “the statutory results only reflect the contribution from the Betfair business from the merger completion date”.
Paddy Power Betfair added that key integration actions and operational changes required to realise cost synergies were completed in 2016, and that the focus in 2017 “is on fully unlocking the group's potential through the integration of technology platforms”.
“2016 was a transformational year for Paddy Power Betfair with much of the integration of the businesses completed sooner and more efficiently than expected,” said chief executive Breon Corcoran.
“The integration of our technology platforms is on track and customers are already seeing some benefits, including more markets and better odds.”
Sports revenue was up 19% to £1.2 billion, with gaming revenue up 14% to £353 million.
Corcoran added: “In keeping with our dual brand strategy, we are serving different parts of the market with distinct value propositions. For instance, at Cheltenham next week Paddy Power has a generous money back offer for second place and Betfair will reward winners with a free bet offer and exceptional odds.
“We have created a business with considerable scale that is stronger and better able to compete than either of the individual legacy companies. The Group is well positioned to deliver sustainable, profitable growth.”
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