Cheeky bookies Paddy Power posted record profits for the first half of 2012 as their marketing stunts continued to pay dividends. Half year profit for the group increased 21 percent to €68.7 million, which is a record amount. At the same time revenue was up 29 percent to €311m and operating profit increased 13 percent to €67.1m – both spurred on by a successful Euro 2012 and growth in both Italy and Australia.
“This has been a very strong first half for Paddy Power. Revenue growth in our existing businesses has accelerated with a 29% increase and each of the divisions achieving double digit growth,” said chief executive Patrick Kennedy.
“We strongly promoted our brand, products and money-back specials during Euro 2012. This contributed to a 50% increase in online customer acquisition for the half year. We are confident in the group’s prospects for the rest of the year and beyond.”
Breaking it down to online (excluding Australia), stakes increased by 31 percent in the sector to €1.050 billion with net revenue up 32 percent to €128m. There was one disappointment with the news that online operating profit decreased by 6 percent to €35.9m but with the increases elsewhere we’re sure they won’t be worrying about a huge amount.
In terms of Australian growth, net revenue increased 32 percent to €67m with operating profit up 24 percent to €13.2million. Italy was another area that saw some good growth and the first month of operation there gave them a 4 percent share of the market.
Euro 2012 took place during the timescale, the results cover and stakes increased by an impressive 164 percent to €78m compared with Euro 2008. Their signature Money Back Specials, which actually lost them €2m, helped out hugely as did some now infamous marketing stunts. The best of these was Nicklas Bendtner scoring for Denmark and then revealing just how he’d scored – his lucky green pants of course.
The next part of the year is likely to see Paddy peering into Nevada to see what’s going on and building up their considerable reputation around Europe. Oh and we’re assuming there’ll be adverts of some description. It wouldn’t be Paddy if there weren’t!