Paddy Power revenues set to hit €639.5m

REVENUES at bookmakers Paddy Power are expect to hit 639.5 million when the company releases full-year figures for 2002 later this month.

Stockbrokers Dolmen

Securities analyst Pat Duggan says he expects revenues to hit €639.5 million for 2002, up from €461 million in 2001.

Mr Duggan anticipates that gross margins of 12%, earnings per share of 28.8 cent and a dividend of 10 cent.

“We are interested to see how Paddy Power is coping in the Irish market with the increased competitive threat.

“Market share has also increased after continued roll-out of betting shops, refurbishing existing licensed betting offices and active marketing.

“We also expect to see the company’s online operations paddypower.com breaking even this year and would expect to see guidance regarding progress here,” he said.

The Dolmen analyst said it will also be interesting to see what plans the group may have for further expansion in Britain given its move to open a number of new betting shops at the end of 2002.

“We believe Paddy Power will continue to perform strongly in to 2003. Growth prospects are strong both in Ireland and in the UK market, where the company will continue to expand in all divisions,” he said.

Paddy Power currently trades in line with William Hill and at a slight discount to Stanley Leisure.

“With the company expected to expand and grow further in 2003, along with the online division breaking even, we are very positive on Paddy Power prospects into 2003 and expect the final year results to confirm this,” stated Mr Duggan who rates the shares a buy.