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News : Irish Last Updated: Dec 19th, 2007 - 13:17:15


Bookmaker Paddy Power reports half year profits of €18.4m
By Finfacts Team
Aug 31, 2005, 11:19

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The controversial 'Pope' advert (1995) which paved the way for what was to follow. The company subsequently refunded all bets when the Pope broke his leg while taking a shower.
Bookmaker Paddy Power has reported a small decline in pre-tax profits of €18.4m for the first half of this year, as punters enjoyed a better run of racing results. This was the reverse of last year, when results led to record profits for the bookmaker.

Turnover grew by 27% to €704m while earnings per share fell to 31.72 cent. An interim dividend of 7.75 cent has been declared.

The company said it had been boosted by the strong economy in Ireland, while sluggish consumer spending in the UK had little impact on its business. 

 

H1 2005

H1 2004*

 

 

 

 

Turnover

704.1m

554.1m

Operating profit

17.8m

18.2m

Profit before tax

18.4m

18.7m

Profit after tax

15.8m

16.0m

EPS

31.72c

33.30c

Cash balance

50.1m

51.6m

Interim dividend

7.75c

6.20c

 

 

 

  

*2004 comparatives have been restated in accordance with IFRS

 

Commenting on the results John O’Reilly, Chief Executive said:

 

“Despite a run of racing results in favour of the punters, we’ve delivered a healthy operating profit, grown revenues and made very good progress in diversifying the business through different channels and products.  We remain confident of meeting our expansion plans for the full year and the Group is very well positioned for 2006 and beyond.”

 

Commenting on the results Ross Ivers, Finance Director said:

 

“We are now reaping the rewards of our strategy of investing upfront in our start-up businesses with our online channel now generating record earnings and set for continued expansion.”

 

The company said that the first half of 2005 has seen the continued development of Paddy Power across all business channels. The retail businesses in both Ireland and the United Kingdom (UK) continue to expand through the organic growth of new outlets, while the non retail business continues to grow both its traditional sportsbook business and its new gaming business.

 

The non retail business accounted for over 63% of operating profits in the six months to 30 June 2005 (2004:33%) and will continue to be a major source of growth for us, together with the continued retail expansion.  

Paddy Power was founded on the merger, which took place in 1988, of three existing Irish high street bookmakers, Kenny O'Reilly Bookmakers (in which Stewart Kenny, Chairman, Paddy Power plc was a partner), P. Corcoran Bookmakers, owned by John Corcoran, a non-executive director of Paddy Power plc and a significant proportion of the betting shops trading as Richard Power, owned by David Power, non-executive director, Paddy Power plc. Since this time, Paddy Power has grown primarily through organic growth to be the largest bookmaker today through 130 outlets in the Republic of Ireland. A further two outlets have been gained in the UK.

In 1988, Paddy Power had just 8% of the Irish off course betting market. This grew to approximately 33% in 2001. The company's telephone betting service, Paddy Power Dial-a-bet was launched in 1996 and the online betting site, paddypower.com followed in 2000. The shares of the company were listed on the London and Irish Stock Exchanges in December 2000. Paddy Power has now commenced an expansion programme into the UK through licensed betting offices, telephone and online channels.


© Copyright 2007 by Finfacts.com

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