PMU net profits up 10.8% for 2011
Former monopoly reports amounts wagered of 10.24bn as president and CEO is re-elected for a further four years.
Former French horse betting monopoly PMU has recorded a 10.8% increase in net profit for the full year ending 31 December 2011, the company has announced.
Net profit rose to 876m, with amounts wagered up 7.3% year-on-year to 10.24bn, which the operator attributed to an aggressive strategy to boost revenues across all verticals. PMU’s core horse betting operations saw a 4.5% rise in amounts wagered, growing to 9.77bn for the year.
This was supplemented strong growth in amounts bet on poker and sports revenues. 100m was wagered on sports “ up 129% from 2010 “ while customers bet 371.6m on poker, up 141% year-on-year, contributing to total gross gaming revenues of 2.49bn for 2011. As a result PMU saw its annual turnover from online activities increase to 45% to 1.3bn, passing the 1bn mark for the first time.
The results were announced at PMU’s annual general meeting, heard earlier today, at which president and CEO Philippe Germond (pictured) was re-elected to the role for a further four-year term, alongside deputy CEO Xavier Hurstel.
The company also announced its results for the first quarter of 2012, posting total amounts wagered of 2.66bn. The majority of wagers were on horse racing, which saw a marginal increase of 0.7% to 2.49bn, while bets on poker and sports increased 53.6% to 129.3m, and 72.2% to 36.7m respectively.
In order to develop its market-leading position and ensure it can remain dominant in the horse racing sector, PMU has announced it has “updated its brand image and undergone an in-depth transformation to adapt to its new challenges.” The group also revealed that it has grabbed a 20% share of the sports betting market, and 6% of the poker market.
The operator is thought to have an 85% share of the French horse betting market, with its nearest competitor ZEturf holds a share under 10%. This prompted a complaint to the French Competition Authority from Betclic, which claimed that PMU held an unfair advantage in France, where amounts wagered on sports dropped 23% in the final two quarters of 2011.
Commenting on his reappointment, Germond pledged to pursue further international expansion, following the PMU’s deal with Ladbrokes to offer sports betting to the UK operator’s Belgian customers: “The confidence that the AGM members have placed in me will allow us to pursue and accelerate PMU’s growth in the next four years and, in particular, to expand internationally. I know I can count on the dedication and talent of PMU’s employees in achieving this goal.”