Despite recording a significant increase in retail revenue, Ireland-based Paddy Power saw machine gaming revenue fall in its UK outlets between January 1 and May 12.
In its latest management statement, the bookmaker said that in 2012 it achieved record turnover of €5.7bn and operating profit of €136m. Chairman Nigel Northridge revealed that the group’s strong growth has continued into 2013, with group net revenue up 20 per cent – driven by 29 per cent growth in online revenue and eight per cent growth in retail revenue. In the UK, machine gaming net revenue fell nine per cent on a like-for-like basis, however.
“Notwithstanding the continued competitive high street environment and weak economy, UK retail performed well with like-for-like net revenue up two per cent, driven by strong sportsbook growth, offsetting a decline in machine gaming,” said Northridge. “Before the cost of free bets, like-for-like gross win per machine per week was down three per cent to £1,201.”
The company’s Irish retail performed well, meanwhile, with like-for-like stakes up three per cent, although revenue declined due to a “return to normal sporting results.”
It described new shop openings as “strong,” noting the addition of 17 locations in the UK and six in Ireland to its portfolio.
Northridge stated that the group “retains significant financial flexibility” with net cash at May 12 of €268m, or €208m excluding customer balances.
“The board looks forward to the remainder of 2013 with confidence given the strong momentum in the business and substantial ongoing investment,” he said.
