Paddy Power Betfair online revenues jump 17%

Paddy Power Betfair today announced a 17% year-on-year rise in Q1 2016 pro-forma online revenues following double-digit growth across both the combined entity’s sports betting and gaming businesses.

In a trading update released this morning, the London-listed operator reported online revenues of ?195m for the three months ended 31 March 2016, up from ?165m across the two businesses during the same period last year.

Revenues from the recently merged gambling giant’s sports betting arm increased 17% year-on-year to ?135m, with 76% of revenues from the vertical now derived from mobile, which was driven by a 23% rise in stakes.

Gaming revenues were also up 17% year-on-year, which Paddy Power Betfair said was largely the result of a more effective cross-sell from its sports betting arm. Its Australia-facing business Sportsbet also reported a 25% rise in revenues.

Paddy Power Betfair chief executive, Breon Corcoran, said the company was progressing well post-merger as the group continues to share products between its respective brands.

“All four of our brands – Paddy Power, Betfair, Sportsbet and TVG – continue to trade well in a highly competitive environment,” Corcoran said.

“Our marketing, technology and operations performed well throughout the key spring racing period and we are now focused on preparations for Euro 2016,” he added.

The operator did not reveal profit numbers for its online business, but did announce EBITDA had increased 27% year-on-year to ?59.1m across the group, which includes Paddy Power’s retail estate.

Paddy Power Betfair’s share price was down 135p to 9,035p on the London Stock Exchange at the time of writing.