Paddy Power has released full year 2013 results this morning , largely meeting forecasts. Net revenue for the 12 months increased to €745 million (+17% YoY), beating estimates by €5 million while profit before tax amounted to €141 million (+5%), in line with estimates. Paddy Power continues to make good progress in its mirgration towards increasing the number of online customers despite suffering from a €10 million headwind related to currency fluctuations during the year.
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The online division continues to be the main driver of growth for Paddy Power with net revenue for the division amounting to €473 million (+21% YoY), supported by strong active customers (1.9m) with the growth rate amounting to 19%. Mobile revenue also continues to experience a strong uplift and revenue increased by 73% in 2013 to €212 million. Paddy Power also continues to achieve a high conversion rate of online clients (69%) using mobile features. In Italy, Paddy Power have increased their online market share to 10% versus the 5% recorded early in 2013.
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On the retail front, LfL revenue increased by 2% in the UK during 2013 as Paddy Power also opened 57 shops in the region (10 additional shops in Ireland) although headwinds did reduce operating profits in the UK to €13.9 million (€-.9 million YoY). In Ireland operating profits fell by €.4 million to €14.0 million.
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Going forward, Paddy Power notes the negative impact of football results in January and in the first two months of the year sportsbook stakes increased by 6% across the retail channel and by 19% online on a LfL basis. Management remain confident of the group’s prospects for 2013 and will update the market with quantitative guidance later in the year.
<p><h5>David Holohan</h5>
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