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PMU posted full year 2013 and Q1 2014 results

Aggressive marketing and product diversification strengthens performance in difficult market
French operator Pari Mutuel Urbain posted full year 2013 and Q1 2014 results that it said, despite unfavourable economic conditions, were in line with expectations.
Key performance highlights for the Full Year 2013 period include:
-   Net income of Euro 854 million which was in line with objectives announced earlier in the year.
-   Year on year growth of 0.6 percent in gross gaming revenue which amounted to Euro 2.542 billion, despite a decline in stakes of 0.9 percent to Euro 10.405 billion.
PMU attributed its performance to an aggressive marketing strategy both locally and abroad and its diversification into sports betting and poker.
The company’s 5-year growth plan initiated late 2012 focuses on enabling growth drivers such as international development in horserace betting and new gambling activities.
An increased focus on digital innovation included the launch of the MyPMU app and touch screen information dedicated website in the offline business as well as the launch of apps and a redeveloped website in the online business.
Key performance highlights for the 1st Quarter 2014 period include:
-   Total sales amounted to Euro 2.59 Billion (Q1/2013: 3.6 Billion), down 3.4 percent
-   Total gross margin in sales totaled Euro 637.3 million, down 1.3 percent
-   Horseracing sales were down 4.5 percent to Euro 2.377 billion.  Local sales fell 7.4 percent to Euro 2.2. Billion but International business showed a growth of 45 percent to Euro 192 million with the German, South African and U.S. markets emphasised.
-   Sports betting was up 17 percent amounting to Euro 57.6 million driven by betting on Ligue 1 and the strong growth of mobile betting (increased by 88 percent).
-   Poker stakes amounted to Euro 151.8 million, up 9.2 percent, ahead of the market which declined 10 percent year-on-year.
“Despite the contraction in the gross margin, net income for the first quarter is in line with expectations and is slightly higher than the first quarter of 2013," a PMU statement said.  “This therefore enables the PMU to ensure horseracing is provided with the financial resources necessary to enable its ongoing development.”

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