Paddy Power profits soar 57% to E32.1m

PADDY POWER bookmakers have shrugged off a losing streak in December, saying 2004 profits had risen by 57%.

Following profit warnings from the British bookmaking chains Stanley's and William Hill, Paddy Power said its profits for 2004 increased by 57% to E32.1 million.

In the first six months of 2004, the company made E18.7m in profits, meaning a profit of E13.4m in the second half of the year roughly the same as it earned in the second half of 2003.

In a trading update yesterday, Paddy Power said it has also suffered from unfavourable results towards the end of 2004 and this had affected its gross win margins for the year.

But the figures should not be too much of a surprise. The company's finance director Ross Ivers warned at its interim results last September that the bookies' winning streak could not continue indefinitely.

The company yesterday added that margins will be in line with market expectations, and so far this year its trading has been on target.

Shares in Paddy Power added nearly 3% on the Irish stock market yesterday.