Paddy Power, the Irish bookmaker that operates PaddyPowerPoker.com, today issued its interim results for the period January to June 2008.
While the company’s accounts do not breakdown its “non-retail” business, which includes online and sports betting, casino, poker, bingo, and financial spread betting, the report said its poker business continued to expand.
The report said, “Our Poker business grew during the period despite a challenging environment as a result of a 13 percent depreciation in its U.S. dollar playing currency relative to the euro and disruption to the industry landscape since the U.S. outlawed online gambling by U.S. residents in late 2006 (albeit this had no direct effect on Paddy Power). We continue to make good operational progress on a range of fronts, as illustrated by two 2nd place awards, including Top Poker Site, up against global competitors within Gambling Online Readers’ Choice Awards. Our differentiating sponsorship of Europe’s largest poker tournament, the Irish Open, also developed with the 2008 tournament setting new benchmarks with a guaranteed prize fund of €3m, a sell-out inaugural Irish Open ladies event and a record number of side tournament players.”
Operating profit growth in the online business, which includes poker, was up 43 percent to €21.1 million, representing 47 percent of the Group’s total earnings before interest and tax.
However, CEO Patrick Kennedy pointed to the economic gloom as the reason the company was adjusting its full year forecast downwards.
“The performance of the Irish and UK economies has deteriorated, and the growth rates in our businesses have slowed accordingly,” he said. “Paddy Power has always focused on providing better value than the competition, and as our customers face tighter times, we have stepped this up in the last three months. In addition, we said last year that the old adage of ‘what goes around comes around’ applies to sporting results, and they certainly have come back around for punters since June with a string of unfavourable results for bookmakers, and Irish bookmakers particularly. These factors have led us to moderate our operating profit outlook for the full year from approximately €82 million to €75 million, representing growth of €3 million over the 2007 level of €72 million.”
Shares in the company were down 98 cent to €15.07 at 11 a.m.
