First-half turnover up 23% as Paddy Power profits race ahead

FIRST-HALF turnover and profits have raced ahead for betting group Paddy Power.

The country's largest bookies reported that, in the five months to the end of May, turnover in its 141 betting shops was ahead by 23%, with a 14% rise in telephone betting and a 7% rise in the online division.

Chairman Fintan Drury said the average gross win percentage has been strong across all channels, particularly in the online and dial-a-bet channels.

"We expect gross win to fall within its normal annual ranges for the year as a whole," he said in a very upbeat trading statement at the company's annual general meeting yesterday. This time last year the company was forced to announce a profits warning after a string of adverse results at the Cheltenham festival and the Aintree Grand National cost it €4 million.

Though group turnover growth was strong for the first five months, the telephone and online division were hit by the temporary loss of televised horse racing from Britain in April and May after the collapse of the Attheraces channel.

Although daily televised racing was available in the betting shops, television viewers were cut off until June 11 when a new deal was reached between racecourses and broadcasters, which hit these two divisions of the company. But Mr Drury said that since the racing has been back on air growth levels are improved.

"We also continue to see an improvement in the mix of the online and dial-a-Bet customer base."

The company also told shareholders it has expanded the number of betting shops in the group since the beginning of the year, with 141 now open in Ireland, an increase of four, and 20 shops in London, up from 12 at year end. It also has a licences for an additional five shops in Britain, where it sees future growth potential.

Shares in Paddy Power gained 1.5% on the Dublin market yesterday. The shares have risen by nearly 30% so far this year.