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Strong Results For Pari-Mutuel Urbain
Wednesday July 13, 2011 : Online gaming proving to be profitable
The former French gambling monopoly Pari-Mutuel Urbain (PMU) reported strong first half 2011 results this week, attributed to historical growth and successful diversification.
Key performance highlights for the first six months of 2011 compared to the same period in 2010 include:
- Overall growth in revenue of Euro 5.1 billion, up 8.1 percent
- Overall growth of 3.9 percent in gross betting revenues to Euro 1.24 billion.
- Horseracing operations reflected an increase of 3.4 percent to Euro 4.9 billion with an increase in gross horserace betting proceeds of 2.7 percent to Euro 1.19 billion.
- A growth of 2.6 percent in stakes from its network of retail outlets to Euro 4.30 billion.
PMU attributes its strong results to the optimisation of race schedules, an increase in network points to 11000 and investment in its marketing campaigns and internet offerings, said a company spokesperson.
While strengthening its position in horse betting, PMU has developed new activities and initiatives in internet sports betting and poker. The company is now in the top three French sports betting sites with approximately 18 percent market share compared to 10 percent in 2010, and continues to expand its online poker market share currently standing at approximately 5 percent of the French market
This diversification in activities is responsible for 16 percent of the company's gross online gaming revenue and represents 63 percent of its growth.
The company reports impressive results from its one-year old online gaming division with the past six months delivering:
- Its internet stake yielded Euro 639.6 million, reflecting an increase of 64 percent.
- Online activity was strongly driven by mobile offerings, with growth of 180 percent.
The PMU has renewed its 10-year partnership with Switzerland and entered into another with Belgium with the promise of further partnerships by the end of 2011.
The company expects its successful first half will be followed by good second half results, with overall revenues for 2011 topping Euros10 billion, of which more than ten percent will come from internet operations.
Continued strict control of margins and expenses, especially with lower fixed costs should lead to significant growth in net income and an increase in funds donated to the French horse industry.
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