In summary for the first quarter of this year the newly merged Paddy Power Betfair did well over the main event of the quarter, the Cheltenham festival but results since then have been adverse. Disappointing current trading comments thus took the gloss off these results
Revenue in the first three months of 2017 was up 23% from a year earlier, or 15% on a constant currency (cc) basis, to £416mln.
The growth was driven by sports betting, with stakes on the sports-book up 18% (cc: +9%) year-on-year. High street outlets had a good quarter, with revenue up 23% (cc: +18%) to £82mln from the year before.
Online revenue rose 15% (cc: +12%) to £224mln, while the Australian operations saw revenues rise 21% in local currency.
Underlying earnings, or EBITDA, were up 87% to £111mln.
Underlying profit more than doubled, rising 114% (cc: +117%) to £91mln.
The company cautioned though that their customers have done well since March. A well backed favourite won the Grand National, favourites have been winning in Premier League football and (the popular with European bettors) Sergio Garcia won the US Masters, all of which meant overall gross win margins were weak in April.
“A key strategic focus for 2017 is the integration of our technology platforms. This project is on track and we expect both our European brands to be operating on a common platform by the end of the year, at which point customers will start to benefit from increased pace of new product delivery,” said Breon Corcoran, chief executive of Paddy Power.
Shares in the company fell 1% on the results.
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