Paddy Power sees profits dip on back of betting pay-outs
Ireland’s largest betting and gaming company Paddy Power saw a 1.8% after-tax profits dip to €27m last year, the company said today, blaming hefty pay-outs to on-the-ball punters.
"A run of sporting results can favour one side or the other of the betting equation - last year certainly did not advantage bookmakers. That is not a moan. It’s just a fact of life in this business," a spokesman for Paddy Power said today.
Earnings per share fell 4.4% to 54.08c on the back of the profits downturn.
On the bright side, Paddy Power's online arm, which accounted for 56% of group earnings in 2005, delivered a 92% increase in operating profit.
"Trading in the first two months of the year has been satisfactory and we look forward to another year of growth," Paddy Power boss Patrick Kennedy said.
"While the run of results and structural change in the Irish marketplace impacted our gross win percentages during the year, 2005 saw strong revenue growth across all our channels – a key indicator of the health of the business," he added.
The company intends to start an online operation in continental Europe and to continue to invest in the roll out of its UK estate. At the end of last year, the group had 45 shops open in the UK, compared with 12 at the end of 2003.
Paddy Power's chief executive John O’Reilly has departed the company, with his seat filled by Patrick Kennedy.
