Ireland’s largest and most successful bookmaker, Paddy Power, has released a trading update for the previous 19 weeks stating that it remains ‘on track’ to achieve operating profits of around 75 million for 2008.
The update follows the publication in August of the Dublin-based bookie’s interim results for the six months to the end of June and Paddy Power revealed that its prediction was in line with its previous forecasts and guidance, assuming a normal run of sporting results for the remainder of the year.
It stated that such an outcome would translate into a ten percent growth in earnings per share over 2007 even though a depreciation in the value of sterling is expected to reduce operating profit by approximately €5 million this year.
“As flagged in August, the deteriorating economic conditions in Ireland and the UK are having an effect on the group,” read the trading update.
“We continue to respond by providing stand-out value and tightly managing our costs while also investing to improve the proposition to customers.
“Overall, sporting results have been reasonable with some of the impact of the adverse results reported in August recovered later in the period. However, this was partially offset by unusually high racing cancellations in September, particularly in Irish racing.”
Within its online and telephone sportsbooks, Paddy Power revealed that the amount staked grew by 13 percent compared to the same period last year. In addition, online gaming gross wins grew by 15 percent, which was in line with the firm’s expectations after the exceptionally high growth seen in the first half of 2008 against softer comparatives. Overall, the online channel increased its contribution to the group’s operating profits for the period to over 60 percent.