PMU maintains 2013 guidance as online growth offsets retail struggles

French gaming operator PMU has reported a 4 per cent increase in turnover from its online channel to €1,267m for the first nine months of the year, with double-digit growth from the company’s online poker and sports betting products helping to offset a marginal decline from its horse race betting offering.

PMU said that the economic situation in France, with high levels of unemployment and reduced spending on leisure activities, impacted the company’s results during the period.

Year-to-Date 2013 Turnover

PMU’s core horse race betting product recorded a 1 per cent decline in turnover to €7,179m for the nine-month period, of which €6,729.9m was generated in its home market of France, down 5 per cent year-on-year.

This followed a 5 per cent drop in turnover from the company’s retail network to €5,962m, and a marginal 1 per cent decline in online horse race betting turnover to €713m.

PMU benefited however from a strong performance from the international development of its cross-border pool betting activities, with turnover from abroad soaring 102 per cent to €449.5m. The company recently entered the Swiss market with the roll-out of its horse race betting product with lottery operator Swisslos.

Horse race betting gross gaming revenues (GGR) amounted to €1,836.6m during the period, down marginally by 0.1 per cent compared to last year, of which 94 per cent was generated in France.

Year-to-Date 2013 Gross Gaming Revenues

PMU’s online channel continues to perform well, with turnover up by 4 per cent year-on-year to €1,267m.

The slight decline in horse race betting turnover was offset by a 16 per cent increase in sports betting turnover to €138.9m, driven by higher bets on French football league Ligue 1, and a 10 per cent rise in online poker turnover to €415.2m.

Online GGR amounted to €207m during the period, an increase of 3 per cent versus a year ago. Sports betting GGR grew by 14 per cent to €26.2m, while online poker GGR was up 22 per cent to €15.7m.

The company claims that its PMU.fr offering is the biggest betting site in France with a market share of 44 per cent. According to PMU, it maintains a top position in the online horse race betting market with 84 per cent, second place in the online sports betting market with 26 per cent (behind leader FDJ), and third place in the online poker market with an 8 per cent share (behind Winamax and Pokerstars).

“While working to reduce its running costs, PMU continues its efforts of development and innovation, as part of its strategic plan PMU 2020,” said the company in a statement.

PMU has maintained its guidance for the full 2013 year, with the company expecting GGR to be marginally higher by 0.2 per cent.