Online and mobile deliver for Paddy Power

Irish bookmaker Paddy Power plc delivered strong interim results for the six months ended June 30 2011, with online and mobile the company’s star performers.

Key Performance Highlights include:

– Underlying profit before tax up 15 percent to Euro 56.8 million and diluted EPS up 18 percent to 97.1 cent, notwithstanding the 2010 World Cup comparative and adverse sporting results during the period;

– A 20 percent increase in the interim dividend to 30.0 cent per share, supported by a strong balance sheet with net cash of Euro 91 million at period end;

– 81 percent of Group operating profit from online activities. 73 percent from international activities.

Online Highlights :

–     Substantially increased online scale:

–     Gross win up 28 percent to Euro 143 million.
–     Operating profit up 25 percent to Euro 45.3 million;

–     Very strong paddypower.com growth:

–     Active customers up 48 percent.
–     Gross win up 35 percent to Euro 101.1 million.
–     Operating profit up 26 percent to Euro 36.5 million;

–     Strong Australian profit growth and initiatives to drive further growth:

–     Operating profit up 25 percent (15 percent in constant currency) to Euro 9.8 million;

–     Large share of rapidly growing mobile market:

–     Paddypower.com mobile sportsbook turnover up 279 percent with 35 percent of active customers transacting via mobile, generating 22 percent of stakes.

Retail Highlights:

–     UK Retail operating profit up 59 percent to Euro 4.7 million. Like-for-like sportsbook stakes up 6 percent. Like-for-like machine gaming revenue up 16 percent;

–     UK Retail estate now 151 shops with 27 shops opened in the year to date and an expectation going forward of opening 35 to 40 shops annually;

–     Irish Retail operating profit down 44 percent to Euro 5.1 million, driven by adverse sports results. Like-for-like stakes down 1 percent. Direct operating costs per shop down 4 percent.

Patrick Kennedy, Chief Executive, Paddy Power plc, said:

“This has been a great first half for Paddy Power. The excellent performance of the Online Division and the success of our mobile offering stand out.

“We have continued to experience strong growth in the UK Retail market and our Australian business has progressed well.

“Conditions in Ireland remain tough but our business is well positioned; we therefore remain confident in the prospects for the Group in 2011 and beyond.”