New group to compete ‘against anyone’

The growing sense of reality surrounding a merger between Paddy Power and Betfair will mean different things to different people.

Some punters might feel there to be a real prospect of a little less competition. Investors are likely to see scope for significant upward share price movement.

Paddy Power shareholders, in particular, now have a bit more visibility on when to expect that €80m special dividend windfall.

For Paddy Power, as a company, the merger represents the chance to scale-up.

Last year, Paddy Power generated revenues of €882m and record profits of €167m.

Ten years ago, it was generating profits of ‘just’ €31m, by comparison. In an interview with The Sunday Business Post in 2002, then outgoing Paddy Power CEO Stewart Kenny was talking about the then newly-launched website’s hopes of breaking even and the company’s chances of making a dent in the UK market.

Fast forward to 2015 and 75% of Paddy Power’s annual profits come from its online platform, with it also making online strides in Australia, France and Italy. 

In a recent note, Davy Stockbrokers analysts, David Jennings and Robert Stokes forecast the new business would have revenues of €2bn, and would see Paddy Power’s current scale disadvantages “dissolve”. 

“This group will be able to compete with anyone,” the analysts suggested


These green pancakes are topped with avocado, tomato and cottage cheese.How to make Jamie Oliver’s super spinach pancakes

Who else can pull off a look described as a ‘hip-hop Michelin woman’?As her new EP drops, this is why there will never be a style icon quite like Missy Elliott

The classic white-tipped look is once again in favour, and celebs are loving it.The French manicure is back – 5 modern ways to try the trend

The A-Listers hiding in plain sight: As Rihanna is spotted at the cricket, who are the celebs who have been living under our noses in Ireland? Ed Power reports.Celebs in plain sight: The A-Listers living under our noses in Ireland

More From The Irish Examiner