The Irish bookmaker announced a 2.4 per cent drop to 17.8m in operating profit for the first half of the year, on turnover up 27 per cent to 704.1m.
The company runs 178 betting shops throughout Ireland and Britain, but the non retail business has been the major source of growth, both in its traditional sportsbook and its new gaming business.
Online turnover from the sportsbook increased 46.9 per cent to 153.8m, while turnover from gaming activities, including casino, poker and games, totalled 21.4m, an increase of 588.7 per cent.
After an exceptional 2004, the gross win margin at the retail arm reverted to a more normal level for the first half of 2005 (12.4%), albeit lower than expected due to the large number of big races won by favourites, many of which were Irish-trained horses popular with Paddy Power\’s punters.
Online gross win was stable at 11.6 per cent, helping non retail profits overtake the companys high street betting shops profits for the first time. Internet and telephone profits accounted for over 63% of total operating profits, compared to 33% during the same period the year before.
Total active online customers (those who have bet in the last three months) were 73,999, an increase of 36.2 per cent, while the average bet size in the sportsbook was 28.30.
“This time last year we were talking about stellar results for the bookies but this time punters got their revenge. They have had a very good run over the first six months of the year and that has had an impact on operating profits,” said the Finance Director Ross Ivers.
“Despite a run of racing results in favour of the punters, we\’ve delivered a healthy operating profit, grown revenues and made very good progress in diversifying the business through different channels and products. We remain confident of meeting our expansion plans for the full year and the Group is very well positioned for 2006 and beyond,” commented the Chief Executive John O\’Reilly.
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