Profits Rise 59% at Paddy Power

3rd March

Bookmaker Paddy Power said its profit climbed 59% in 2007 to €72 million on the back of strong online betting.

Net income rose to €62.8 million ($96 million), or €1.25 a share, from €41.2 million, or 81 cents, in 2006, the company said today. Gross winnings rose by 28% to €279 million.

Paddy Power has added German and Spanish-language online sports betting to boost internet sales. But the company’s German web site will close down on March 17th following the efforts by German authorities to outlaw internet gambling.

Online revenues rose 38 per cent to €54.1 million, and revenue from telephone bets grew by 10 per cent to €27 million. Paddy Power also introduced a number of products during 2007 such as casino-style games and financial “spread betting”.

“The outlook for Paddy Power remains strong, underpinned by our momentum and our strong market positions. We are confident in our prospects for 2008 and beyond,” said chief executive Patrick Kennedy.