Paddy Power canters in with 158% profits rise

A STRING of losing favourites at the Cheltenham festival helped push out pre-tax tax profits at bookies Paddy Power by 158% in the first half of the year.

The country’s largest bookmaker said it was also helped by other sporting results, which boosted profits from €7.2 million a year ago to €18.7m in the six months to the end of June.

Turnover rose by 22% to €554.1 million, driven by increases across its three channels - shops, telephone and online betting.

The company’s 161 betting shops recorded an overall increase in turnover of 25% to €340m. Like-for-like turnover, which excludes the impact of new shop openings, was ahead by nearly 13%.

Finance director Ross Ivers said the company was pleased with the progress it was making with its British expansion and expected to have 30 shops opened by the end of the year.

The company’s telephone betting arm, dial-a-bet, booked a 20% increase in turnover to €105.8m and made an operating profit of €2.3m.

Turnover growth at the online arm was somewhat slower at 15%.

Paddy Power plans to launch an online casino in Britain later this year after the success of its Irish launch, which added €1m to operating profits during the first six months. The online arm turned over €107m for the period and operating profit €3.7m.

Shareholders will get a 44% rise in the interim dividend to 6.2 cents a share.

Mr Ivers said the company had made no decision on what to do with its €50m cash pile. It is weighing up whether to return some of the cash to shareholders or, depending on further deregulation of the betting in Britain, make an acquisition.

Paddy Power’s top bosses yesterday netted millions by selling part of their stake in the firm.

Chief executive John O’Reilly sold 600,000, netting almost €6 million, while finance director Ross Ivers sold 30,000, earning him €291,000.

The company’s founder and former chairman, Stewart Kenny, sold a further part of his stake. Mr Kenny sold 500,000 shares worth €4.85 million. He also sold 60,000 shares to a trust held by members of his family.

Overall, the company placed 3.1 million shares yesterday.