Paddy Power Reports Impressive Growth in Australia
Paddy Power Betfair has reported financial growth for both its businesses a month after their merger, stating that they could potentially become one of the biggest online betting companies in the world.
Paddy Power reported revenue of €1.1 billion, an increase of 24 percent year-on-year with their pre-tax profits up 8 percent to €179.7 million. The company’s Australian business, Sportsbet, particularly boosted their numbers, compensating for the impact of higher taxes that were introduced in the UK.
Sportsbet reported an operating profit of €79.5 million for 2015, a 54 percent jump from 2014. It reported record wagering turnover of €2.83 billion with approximately €2.6 billion of that coming from its online sportsbook.
Sportsbet now contributes 44 percent of profit for the Irish bookmaker, Paddy Power and is now considered to be the company’s biggest source of profit. Their active customers have grown by 33 percent to 750,000 in Australia. Eighty seven percent of their online wagers are placed via a mobile device with mobile now making up 66 percent of all online wagering at Sportsbet. Mobile wagering brought in €1.7 billion in 2015, an increase of 76 percent.
“Consumers are voting with their feet and they are moving more and more to betting on their mobile device,” said Cormac Barry, CEO of Sportsbet.
“This is moving very quickly, in the next few years we expect that 80 to 90 percent of bets will be by mobile. At Sportsbet, we aim to give our consumers what they want and that is why we invest so heavily in marketing, technology and our people.”
“We consistently create a range of betting products that suits the consumer and we will continue to do that,” Barry continued, saying they expect to grow faster than the online wagering market.
April 16, 2017