Irish Bookmaker Paddy Power reports €167M in operating pre-tax profits in 2014, a 21% increase compared to the previous year. Revenues for the year ending December 31st, 2014 came in at €882M which is up 18% on the previous year.
Paddy Power Chief Executive, Andrew McCue, stated that “2014 was an excellent year for Paddy Power with robust double digit growth in stakes, revenues and profits, and a marked increase in customer acquisition.”
The bookmaker stated that key markets played a large role in their profit increase with their online Australian market jumping 56% to €52.4,and excluding Australia, online profits were up 3% to €75.3m.
Apart from their online and mobile increase, the company had expanded their shops adding a further 55 bringing the total to 322 in the UK and 243 in Ireland. Their Ireland shops have now exceeded 1 Billion in stakes.
In 2012, Paddy Power expanded to the online Italian market which they are currently evaluating as growth has been slow despite a decent market share there.
Due to the outstanding growth of Paddy Power in 2014, the company have decided to pay a 13% increase in full year dividend as well as an extra €392 in cash returns to shareholders. The decision is despite the fact that they now operate in more heavily regulated and taxed markets with increased volatility in sports.
Mobile betting accounted for 55% of their increase in stakes, revenues and profits. Though they’re goal moving forward will be to agree key partnerships, they will focus on their in-house product development and enhance their current offerings to set them apart from other betting operators in key competitive markets.
Andy McCue explains, “We believe that this is an opportune time to return a material amount of capital to our shareholders, whilst retaining the flexibility to respond to opportunities that may arise.” Adding further, “We have re-organised the business to significantly sharpen our focus on product differentiation and innovation, and to increase in-house development. This, combined with clear investment priorities, will pave the way for sustained performance and market leadership.”
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