Nearly half of online revenues generated via mobile, says Paddy Power

Following a record performance last year, Irish bookmaker Paddy Power said Tuesday that its strong growth has continued into 2013 with net revenues up by 20 per cent for the year to date, buoyed by further online and mobile growth.

Paddy Power said that its results for the 19-week period ended May 12th were in line with expectations, driven by growth from both its online and retail operations which saw net revenues increase by 29 per cent and 8 per cent respectively compared to the same period last year.

Jan. 1st - May 12th 2013 Net Revenues

Total sportsbook amounts staked grew by 17 per cent, with the company benefiting from favourable sporting results. As a result sportsbook gross win percentage was above normal expectations and higher than the equivalent period last year.

Paddy Power’s online channel (excluding Australia) saw net revenues rise 30 per cent, while Australia also performed well with net revenues climbing 28 per cent year-on-year.

“The strengths of both businesses are being complemented by leading positions in mobile betting, with that component of revenue up 112 per cent to an industry leading 42 per cent of total online revenue,” said Paddy Power in a statement to the London Stock Exchange.

Online sportsbook net revenues were up 36 per cent following a 19 per cent rise in amounts staked, while gaming/B2B net revenues increased by 21 per cent year-on-year. Active customers were up 32 per cent compared to the same period last year.

The company’s online channel also benefited from the inclusion of Italian activity in the period which added 3 per cent to its net revenue growth. Excluding Italy, net revenues would have risen by 27 per cent.

“We continue to invest in our Italian online operation: our online sportsbook market share increased to 6 per cent in the first quarter of 2013, whilst we also significantly expanded our gaming product range in the last two months with the roll out of online games and a download live casino and our mobile casino going live this week,” said Paddy Power.

In Australia, online amounts staked increased by 23 per cent, generating a 28 per cent improvement in online net revenues. Online active customer rose 39 per cent year-on-year.

In UK retail net revenues were up 2 per cent on a like-for-like basis, driven by strong sportsbook growth which offset a decline in machine gaming. Before the cost of free bets, like-for-like gross win per machine per week was down 3 per cent to £1,201.

Irish Retail also performed well with like-for-like stakes up 3 per cent, although revenues declined due to a return to normal sporting results.  

“The group's strong growth has continued into 2013, in line with our expectations,” Paddy Power chairman Nigel Northridge will state at the company’s Annual General Meeting this morning. “The board looks forward to the remainder of 2013 with confidence given the strong momentum in the business and substantial ongoing investment.”

As at May12th the company had net cash of €268m, or €208m excluding customer balances.

Shares in Paddy Power plc (Co. Data) (LSE:PAP) have dropped 1.02 per cent to €67.01 per share in London this morning following the announcement.