LONDON (Alliance News) - Betting and gaming company Paddy Power PLC Tuesday reported an increase in revenues and profits for the year 2013, boosted by its online business, although it said it lost out on EUR10 million in profits due to new product fees and taxes, currency depreciation and the first full year of investment in Italy.
The Irish bookmaker declared a 13% increase total dividend for 2013 of 135 cent per share, up from 120 cent in 2012.
Net revenue of EUR745 million was up 17% in constant currency, and 12% at actual exchange rates, with growth in every division, it said. It said the amounts staked by customers in 2013 was EUR6.12 billion, up from EUR5.69 billion in 2012.
For the financial year ended December 31 2013, Paddy Power reported a pretax profit of EUR141.0 million, compared with EUR139.2 million in 2012, an increase of 1% at actual exchange rates, and 5% in constant currency.
Paddy Power said profit growth in 2013 was achieved notwithstanding a EUR10 million headwind from new product fees and taxes, currency depreciation and the first full year of investment in Italy. It said in the second half of the year it was also hit by "an exceptional run of punter-friendly sports results", especially tennis champion Andy Murray winning Wimbledon and American golfer Phil Mickelson winning the British Open championship.
"In the first half of the year sports results went backwards and forwards like a naked Miley Cyrus riding a wrecking ball but overall showed their tendency to normalise with time," the company said in a statement.
Paddy Power said 54% of group operating profit came from its online business excluding Australia and a total of 78% including Australia. A larger proportion of profits also came from online customers in the UK and Australia, it said, adding that while online profits rose, telephone betting profits dropped.The company said online active customers increased by 19% to 1.9 million during the year, compared with a 14% decline in its telephone channel active customers.
"In Online, 2013 saw the release of more new product than ever and reinforced our industry leading penetration in mobile betting, both for sports and eGaming. In Retail, we opened a record 67 new shops and now have over 500 units. In new geographies, we are steadily growing our revenues in Italy, and we signed a new B2B contract with Niké, the largest retail and online operator in Slovakia," the company said.
The group said net cash at year end was EUR229 million, compared with EUR209 million a year earlier.
Paddy Power shares were trading 0.7% lower at 60.18 pence per share before midday Tuesday.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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