Punters' 'cracking year' hits Paddy

Published on Tuesday 2 March 2010 20:22

BOOKMAKER Paddy Power said a "cracking" year for punters had left it with a 15 per cent slide in profits after a run of exceptionally customer-friendly sporting results.

The firm said it "took a proper pounding" in the racing at Cheltenham in 2009, while Six Nations rugby did not go its way and football saw a dearth of draws.

Despite a 31 per cent rise in the amount staked by customers to 2.72 billion (2.49bn), pre-tax profits for the year to 31 December fell from 79 million (71.5m) to 67.2m (60.8m).

Chief executive Patrick Kennedy said: "Despite the economic problems, 2009 was a cracking year for Paddy Power punters on two fronts.

"The year saw a slew of punter-friendly sporting results which was the exact opposite to the experience of the prior year."

He said the firm had invested in offers and concessions to attract extra custom, while also expanding the business with acquisitions in Australia and a further 25 shops in the UK.

The firm now has 93 outlets in the UK and teams in Glasgow and Manchester aimed at boosting the firm's high street presence further outside London. It said it intended to have at least 150 shops in the UK by 2011.

In Australia, the firm snapped up Sportsbet and IAS in the year to move into the online market. It is hoping to capitalise on a substantial regulated betting market and a "high gambling spend per capita".

The Australian division made up 7 per cent of operating profit in the year while the UK accounted for 44 per cent.

Paddy's online division – excluding the Australian arm – increased its proportion of group profits, from 57 per cent in 2008 to 69 per cent last year.

The firm said the potential growth of online betting still had a long way to go with the roll-out of "super-fast" broadband in the UK and elsewhere over the next few years.