Paddy Power To Receive Increased Online Betting Contribution

Last year in a show of disappointing 12 month results, online operations made the largest contribution, for the first time, to the betting group Paddy Power's bottom line.

On revenues that improved by just over 18 percent to Euro1.37 billion, before-tax profit for the period was down 2.5 percent from the previous year to Euro 31.3 million. About 56 percent of this was accounted for by online operations, which contributed Euro 577 million, while online operating profits grew rather strongly to Euro 21 million. An amazing growth of fully 92 percent.

In 2005, the move to online action accelerated according to a company spokesman. This was due in part to the launching last year of the company’s online poker product. The number of active online customers has now reached 73 661. This is an increase from the 2004 total of 46 703. The greatest growth was in the gaming only membership which rocketed from 2 338 to 11 227. This was well ahead of the sports book-only clientele.

The company’s CEO Patrick Kennedy, has reported that the group has plans for European expansion during 2006, but is presently taking a more guarded approach to the US market. Kennedy explained that although there apparently is that obvious temptation to take a brand such as theirs to locations like the cities of New York and Chicago, but that the company must first manage its growth and also has to consider the legal situation that yet remains a gray area.

According to CEO Kennedy, who emphasized the continuing impressive growth of the group's online business and that it was quickly becoming an increasingly more important part of the overall proposition, the growth that has been seen in the past few years in the company’s non-retail or Internet online channel of business, has been clearly impressive. In addition to being able to benefit from the sports book being offered through both telephone and internet channels, casino products, such as gaming products and poker have been successfully introduced.

Structural changes in the company’s home market followed by a bad run of outcomes, were blamed for the resulting fall in profits.

Jack Massey was appointed finance director by the company. He is an experienced executive who was previously with the technology investment group ITG Europe where he functioned as their chief operating office.  He assumes his new responsibilities this coming April.

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