Paddy Power Betfair has announced that an increase in revenue for the three months ending September 30, 2016 means that its forecast for full-year results are now better than previously expected.
Paddy Power Betfair, which was formed earlier this year after Irish Paddy Power and UK-based Betfair merged, said that its increase in revenue could be largely attributed to growth of its sports betting business. The company also benefited around £28 million due to conversion of non-UK revenue into the weak sterling.
The company reported revenue for the third quarter of €453.9 million, an increase of 25 percent and a 15 percent increase in foreign currency. Underlying EBITDA increased 53 percent to €127 million with a 28 percent increase in margin. Underlying operating profit reached €107 million, an increase of 68 percent.
There was a 26 percent increase in sportsbook stakes (a 14 percent increase in constant currency) which was helped by a strong end to the Euro 2016 national football team tournament.
The forecast for the company’s full-year results have now been adjusted and are better than previous expectations with underlying EBITDA expected to reach between £390 million and £405 million, up from the original forecast of between £365 and £385 million.
“This was another good quarter for Paddy Power Betfair; we are continuing to focus on building a stronger combined operation by exploiting the unique assets and capabilities of each legacy business and on using our scale to better serve our customers,” announced Breon Corcoran, chief executive of Paddy Power Betfair
“Work is underway to combine the best of Betfair and Paddy Power’s technology into a multi-brand, multi-channel, multi-jurisdictional platform that will start to unlock the full potential of the group’s scale and will lead to increased pace of development and faster roll out of new products.”