Paddy Power to be withdrawn from Italy before year end
Chief exec Breon Corcoran says firm waiting on regulatory approval for customers to be transferred to Betfair
Paddy Power will be withdrawn from Italy within the next nine months as the firm continues to move towards a single brand strategy outside of Ireland and the UK, Paddy Power Betfair CEO Breon Corcoran said this morning.
The firm had previously stated its intention to adopt a single brand in international markets and speaking to analysts following its results publication, Corcoran confirmed Betfair would take on Paddy Power’s Italian customer database, pending regulatory approval.
“The plan was to move to one brand, Betfair, but to do that there was a regulatory requirement [in Italy] in the approval process before customers can be migrated,” Corcoran said.
“It is taking a little bit longer than expected but I still think it will happen this year,” he added.
Paddy Power’s Italian business has been something of a problem child since its launch in 2012.
A loss of €15m in 2014 prompted a “root and branch” review which led to the implementation of a significant cost reduction exercise.
In 2015, Paddy Power’s then CEO Andy McCue stressed that Italy offered good long-term opportunities for the firm and committed to a lengthy presence in the market.
However, that viewpoint has changed since last year’s merger with Betfair, which has become the chosen brand in markets outside the UK and Ireland, where Paddy Power holds significant market share.