Revenue up but Paddy Power Betfair hit by adverse results
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The surprise result was one of several punter-friendly outcomes for the three-month period ending December 31, 2016, and the firm estimated the loss in revenue – before recycling any winnings – was around £40m, with European football results also favouring customers.
However, Paddy Power Betfair still posted an 18 per cent rise in group revenue for 2016 to £1.55 billion. Group EBITDA (earnings before interest, taxes, depreciation and amortisation) is expected to be between £390m and £405m, notwithstanding worse than expected gross win margins in November and December .
The online division was affected by the string of punter-favourable results, with revenue down three per cent year-on-year, despite a 15 per growth in sportsbook stakes.
While the European arm of the company suffered adverse results, there was strong growth in the Australian division, with revenue growth of 18 per cent and a 25 per cent rise in stakes.
The company will unveil their preliminary results on March 7.
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