Paddy Power Betfair has released its financial report for the six months ending June 30, 2016. It revealed growth in revenue and operating profits for the six month period; however it still reported a £47.5 million loss which it has attributed to costs of its merger in February.
Revenue for the mega bookmaker rose 18 percent to £759 million from £642 million for the previous six month period. Operating profits increased 39 percent to £147.6 million, up from £106.5 million during the previous six months.
However, the costs of merging the Irish Paddy Power and the UK Betfair came to £195 million which included £49 million in costs for integrating the two companies (a cost that is likely to rise to £65 million by the end of the year) and £50 million in duties and fees.
According to chief executive Breon Corcoran, the companies have completed their restructuring and are already benefiting from savings. The company is now expecting that the merger will cut their operating costs by £65 million, £15 million over the original estimate.
“Paddy Power Betfair has sustained good momentum through a period of considerable change,” said Corcoran.
“We are creating a world-class operation by exploiting the unique assets and capabilities of each legacy business, particularly in the key functions of technology, marketing and trading.”
“While our industry remains highly competitive and is exposed to the prevailing economic and regulatory environments, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth.”
At the same time, the company announced that Paddy Power co-founder Stuart Kenny will be stepping down from his role as non-executive director of the board, a position he has held for the past thirteen years.