Paddy Power Betfair FY15 revenues approach ?1bn
Proforma numbers for combined online business show ?766m in online sportsbook revenues with gaming generating ?221m
The combined Paddy Power Betfair generated online revenues of ?987m in 2015, the firm announced this morning.
In the first financial update since the pair completed their mega merger on 1 February, Paddy Power Betfair reported proforma combined online EBITDA of ?296.5m.
Joint online sportsbook stakes were ?4.4bn (excluding Betfair’s Exchange and Australia) for the 12 month period ended 31 December 2015, leading to sportsbook revenue of ?534m while gaming contributed ?221m.
Online revenue from regulated markets accounted for ?676m of the total, with ?73m coming from unlicensed jurisdictions.
Revenues from Australia were ?232m during the period, while the US contributed ?71m (?7m online). Retail added a further ?266m, taking total proforma group revenues to ?1.3bn.
Group EBITDA was ?295m, leading to an operating profit of ?219.5m.
Paddy Power Betfair CEO Breon Corcoran said he was “very pleased” to complete the merger, creating one of the world’s largest egaming companies with “enlarged scale, enhanced capability, and distinctive complementary brands.”
“Our belief in the strategic rationale for the deal has only been strengthened following our early days as a combined operator.
“The combination of two industry leading operators, with aligned strategies and a strong cultural fit, is hugely exciting and the enhanced efficiency from operating at greater scale means we are well positioned to compete in both existing and new markets,” he added.
The update also broke out Paddy Power’s full year results, with online net revenues increasing 28% YoY to ?707.3m (?547m) leading to a 20% increase in operating profit to ?151.6m (?117m).
Paddys’ Australia-facing Sportsbet business accounted for nearly half of the Irish bookmaker’s total online revenues during the year at ?320.8m (?248m), leading to an operating profit of ?79.5m (?62m).
The combined gaming giant also reported Betfair’s Q3 FY2016 results, with revenues up 21% YoY to ?138m leading to a 10% increase in EBITDA to ?26m.