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Paddy Power Betfair maintains FY profit outlook amid 17% rise in Q1 revenue

Thursday, 2nd May 2019
Paddy Power Betfair said its full-year profit outlook remained in line with expectations as "excellent" growth in Australia and the US drove a 17% year-on-year increase in first-quarter revenue.

In the three months to 31 March 2019, revenue climbed 17%, compared to same period in 2018, to £478m.

"Trading in April has been in line with our expectations. In the US, FanDuel remains well positioned to generate good returns on ongoing sports betting investment and for rest of the Group we remain on track to meet our full year profit expectations despite the adverse sports results in Q1," said Chief Executive Peter Jackson.

In the Sports sector, revenue growth was strong for both Sportsbet and FanDuel, but online and retail performance were dragged down by unfavourable sports results in UK and Ireland, primarily February racing and March football, the company said. Revenues were also adversely affected by the temporary suspension of UK horseracing fixtures in February (due to equine flu).

Online sports revenue slumped 6% year on year to £152m. Retail sports revenue also declined, falling 5% year on year to £50m.

However, Gaming saw "excellent" revenue growth (up 31% at £76m) across both European and US online businesses, with growth further supplemented by the acquisition of Adjarabet at the beginning of February, the company said.

Revenue, excluding Adjarabet, increased by 14%, driven by ongoing strong growth in Paddy Power. Adjarabet, meanwhile, continued to capitalise on its strong brand and good market growth in Georgia and Armenia, with Q1 gaming revenues up 25% on a pro-forma basis.

In Australia, revenue increased 20% to £96m, driven by continued "good" underlying customer activity with 17% growth in stakes. And in the US, revenue increased 47% with underlying growth in the company's non-sportsbook businesses (up 12%), supplemented by $24m of sports betting net revenue.

Betfair Casino growth (up 83%) accelerated due to sportsbook cross-sell and as a result, the firm's New Jersey casino market share increased to 14% in Q1 2019 from a steady 11% over the previous two years.

Looking forward, the company said it expected to see good returns on its US investment.






Story provided by StockMarketWire.com


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