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GReat Year for PMU
Friday April 12, 2013 : PMU EXCEEDS OBJECTIVES
Sound strategy pays off
French operator Pari Mutuel Urbain has exceeded its growth objectives in all sectors confirmed a report on its 2012 fiscal year performance released this week.
Key performance highlights for the period ending December 31, 2012 include:
- Net income of Euro 865 million.
- 2.5 percent growth in activity to Euro 10.498 billion which it attributes to its diversification strategy initiated three years ago.
- Growth in horse race betting stakes of 0.5 percent to 9,817 million
- Gross betting rose 0.7 percent to Euro 2.476 billion.
- A gross gaming total of Euro 2 521.8 million, up 1.3 percent.
- Internet gross gaming activites up 16.2 percent to Euro 270.1 million.
- Total online stakes of Euro 1 652,7 million, up + 22.8 percent.
Although the company experienced a good overall performance, results reflect a mixed picture with a decrease of stakes in France of 1.1 percent, offset by a sharp increase of 87 percent in International activities said a company statement.
PMU said it had invested heavily in its retail division with the development and diversification of 500 new outlets bringing to a total of 11 800 at December 31, 2012.
On the International front, sports betting and poker were major growth drivers. Betting abroad on French races leapt 83 percent to Euro 330 million.
Online activity in horse race betting, sports betting and poker delivered strong results showing a growth of 23 percent. In France PMU said it remains overall market leader holding a market share of 40 percent split out to 23.5 percent in sportsbetting and 7.3 percent in poker.
Operating in a tough economic environment in the first quarter of 2013, a trading update revealed:
- Overall activity totaling Euro 2.678 billion, up 0.8 percent
- Horse race betting stable at Euro 2.490 billion despite numerous cancellations due to weather.
- International horse race betting leapt 126 percent and now represents 5 percent of its total horse race betting sector.
- Sportsbetting and poker recorded increases of 33 percent and 7.5 percent respectively.
Going forward, PMU's strategic plan dubbed PMU 2020 will allow the firm to enable growth opportunities in international markets, social and digital platforms while still investing strongly in its traditional networks. The goal identified for 2020 is a total of Euro 1 Billion in net income.
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