PMU blames poor weather for falling group revenues
French operator’s Q1 revenues dip -3.6% as a result of race cancellations and lack of runners
French betting operator Pari-Mutuel Urbain’s (PMU) gross gaming revenue fell by 3.6% in the first quarter of 2018 after adverse weather conditions significantly affected the horseracing calendar.
Horseracing revenue dipped by 4% to €588m during the three-month period ending 31 March as a prolonged snowy period led to cancelled races and a lack of runners at many meetings.
Horseracing stakes for Q118 decreased by 1.2% to €2.3bn, with the French market more or less stable at €2bn as international activity fell by 4.4% to €289m.
The figures interrupt a period of growth at PMU management after the operator returned profits of €793m in 2017 as a result of its five-year modernisation strategy.
The operator was buoyed by the performance of its sports betting business, where gross gaming revenue increased by 15% to 12.3m.
There was also promising growth in its poker vertical, up 6.6% to €4.4m, likely a result of its recently obtained pooled liquidity sharing license.
PMU last week unveiled its new look management team after its parent companies France Galop and Le Trot voted to install a new Group chairman and CEO.
The new executive board will be responsible for deploying an “ambitious marketing plan” based on recruitment of customers at World Cup 2018 and developing new international partnerships, with PMU planning to distribute French races in the UK through Paddy Power Betfair and William Hill.