Paddy Power Betfair Q3 online revenues leap 20%
Operator also expects full-year group EBITDA to be approx. 6% higher than expected after double-digit growth in revenues and profits
Paddy Power Betfair has raised its full-year profit guidance by 6% after reporting strong double-digit Q3 revenue growth, including a 20% year-on-year rise in online revenues.
The operator recorded digital revenues of £222m for the three months ended 30 September, up from £186m during the same period last year, driven by 21% growth in sports betting and a 16% rise in gaming revenues.
Sportsbook revenues were helped by a 21% increase in stakes (£1.2bn), while revenues from the operator’s Betfair Exchange business also increased 15% year-on-year during the quarter.
Meanwhile, the company’s Australian arm recorded a 50% rise in revenues to £82m – 21% year-on-year increase in local currency â after benefiting from activity via its in-play product which represented 15% of stakes.
“This was another good quarter for Paddy Power Betfair,” chief executive Breon Corcoran said.
“We are continuing to focus on building a stronger combined operation by exploiting the unique assets and capabilities of each legacy business, and on using our scale to better serve our customers.
“Work is underway to combine the best of Betfair and Paddy Power’s technology into a multi-brand, multi-channel, multi-jurisdictional that will start to unlock the full potential of the Group’s scale.”
The operator said it now expected underlying group EBITDA to be between £390m and £405m, up from previous guidance of £365m and £385m, following 25% growth in total net revenue.
Group EBITDA increased 53% year-on-year to £113m, with margins increaseing from 23% to 28%.
Paddy Power Betfair’s share price was up 3.5% to 8,875p after early morning trading.