04-09-2007 Paddy Power announces record profits

The online division of the Irish bookmaker increased its first half operating profit by 53% to EUR 14.8m, notwithstanding the ongoing investments into the German and Spanish language sites and into new products such as online bingo and financial spread betting.

During the first half 2007, the total amounts staked on the online sportsbook increased by 19% to EUR 279m, with the average bet value up 3% to EUR 28.36. Sportsbook gross win increased by 53% to EUR 27.2m, helped by a 9.8% gross win percentage compared to 7.6% in the same period in 2006.

Paddy Power Sportsbook continued to attract media interest with refunds and early payouts, including on Ireland to beat England and win the Triple Crown, Lewis Hamilton's victory at the Monaco Grand Prix, Lewis Hamilton to be the 2007 BBC Sports Personality of the Year and the unprecedented decision to return losing bets on heavy favourite Teofilo in the 2,000 Guineas. After the end of the first half, the company launched a Spanish language site and paddypowertrader.com, an online financial spread betting site.

The online gaming division, which generates revenues from casino, games, poker and bingo, increased its net revenues by 42% to EUR 18.4m, driven by a strong performance of the games channel with an online version of the popular TV game show 'Deal Or No Deal'.

Customer numbers continued to grow strongly, with over 157,000 customers active in the second quarter 2007, up 18% compared to 2006.

The company's overall operating profit increased by 108% to EUR 40.8m fuelled by a strong performance from both the UK and Irish retail divisions.

"We have grown our business very substantially in the first six months of 2007. Profitability has increased by in excess of 100%, with very strong growth in every division, helped by favourable sporting results," commented CEO Patrick Kennedy.

"Our retail operations performed particularly well, with 131% growth in Irish Retail profitability, whilst our UK shops traded profitably for the first time. We also continue to invest in the future, with two new businesses being launched since the start of the year - our financial spread betting business, and our Spanish language online business."

"Strong trading has continued into the second half of the year, and we look forward to the remainder of 2007 and beyond with confidence."