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PaddyPower releases trading update

Irish betting group releases trading update
 
Online and land gambling group, Paddy Power has released an update covering the period 1 July to 15 November 2010, revealing a positive set of key performance indicators and attracting media coverage to its plans to increase its number of employees.
 
Management reported that the company was well on track to meet expectations and published the following indicators:
 
Comparisons of the period with the equivalent period last year in constant currency by division:
 
Ex Australia - Online
* Sportsbook amounts staked +34 percent
* Gaming/B2B gross win +33 percent
 
Australia (Australian growth including IAS from the anniversary of its acquisition on 1 October only)
* Amounts staked - total +6 percent
* Amounts staked - online +22 percent
* Gross win - online +70 percent
 
UK Retail
* Amounts staked over-the-counter - like-for-like +1 percent
* Total gross win (net revenue) - like-for-like +17 percent
* New shops opened year to date +28
 
Irish Retail
* Amounts staked - total, down 5 percent
* Amounts staked - like-for-like, down 8 percent
* Gross win - like-for-like +9 percent
 
Telephone (ex Australia)
* Amounts staked 0 percent
 
 
Financial Position
 
As at 31 October 2010, the Group had net cash of Euro 137 million or Euro 94 million excluding customer balances.
 
 
Commenting on the results Patrick Kennedy, Chief Executive, Paddy Power plc, said: "The strong growth in Group profitability in the first six months has continued into the second half, with a particularly strong performance in our international online businesses and UK Retail activities. We are also continuing to invest in our scale and capabilities to position the Group well for 2011 and beyond in its existing and potential future markets. In this context, we are also today announcing the creation of 1,440 new jobs in Ireland, the UK and Australia, to be in place by December 2013.”
 
Paddy Power’s announcement that it was to increase its workforce was warmly received by the Irish press. The Irish Times wrote that the bookmaker plans to create 500 jobs in its Irish business over the next three years to support its international online betting business, a breakdown of which will comprise 375 people to work at its headquarters in Tallaght, Dublin, mainly in risk management, technology, on-line marketing and other roles linked to the development of its internet business and 125 jobs in its bookmaker shops around the State.
 
It also plans to continue to expand its retail business in Ireland, bringing its Irish workforce to 2,200 by the end of 2013.
 
Paddy Power is also hiring 810 additional people to work in its UK betting shops. It has 121 outlets there and expects to expand this to 250 at the end of 2013, by which time the company’s UK retail business will have overtaken that of the Republic.
 
In Australia, the Irish company holds a majority stake in Sportsbet, the country’s biggest corporate online operator. It is hiring 140 to facilitate the expansion of this business.
 
Chief executive Patrick Kennedy said the global gaming business was worth Euro 335 billion but, as only about 7 percent of this is currently online, this is the part of the business that is set to expand. He said the Irish company has to position itself to exploit that.



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