# Paddy Power Betfair plc Good Q2 revenue growth

- Link: https://www.directorstalkinterviews.com/paddy-power-betfair-plc-good-q2-revenue-growth/412756416
- Published: 2018-08-08T07:18:30+01:00
- Author: Charlotte Edwards

**Paddy Power Betfair plc** (LON:PPB) announced interim results for the six months
ended 30 June 2018.

  |

£m

 |

H1

2018

£m

  |

H1

2017

£m

  |

YoY %

  |

Constant currency^(3  )YoY %

  |  
 |

 |

 |

 |

 |

 |  
 |

Revenue

  |

867

  |

827

  |

+5%

  |

+7%

  |  
 |

 |

 |

 |

 |

 |  
 |

Underlying^(1) EBITDA^(2)

  |

217

  |

220

  |

-1%

  |

+1%

  |  
 |

 |

 |

 |

 |

 |  
 |

Underlying^(1 )earnings per share

  |

173.6p

  |

181.1p

  |

-4%

  |

-2%

  |  
 |

 |

 |

 |

 |

 |  
 |

Profit before tax

  |

106

  |

102

  |

+4%

  |

 |  
 |

 |

 |

 |

 |

 |  
 |

Earnings per share

  |

103.7p

  |

102.9p

  |

+1%

  |

 |  
 |

 |

 |

 |

 |

 |  
 |

Dividends per share

  |

67p

  |

65p

  |

+3%

  |

 |  
 |

 |

 |

 |

 |

 |

**Financial highlights** (in constant currency3):

· H1 revenue up 7%, with Q1 flat and Q2 up 13% (up 9% in period pre-World Cup)

· Good Q2 revenue growth in all operating divisions:

– Online: revenue up 13% with sports +12% and gaming +14%

– Australia: revenue up 19%

– Retail: revenue up 6%

– USA: revenue up 20%

· H1 underlying1 EBITDA2 up 1% to £217m, or up 6% excluding changes in betting taxes&
levies and losses in DRAFT (Q1 flat, Q2 up 13%)

· Net cash of £148m at 30 June; £201m returned to shareholders via dividends & share
buybacks in H1

Strategic and operational highlights:

· Good progress on returning the Paddy Power brand to growth

· Sportsbet using scale advantage to increase investment in marketing and customer
value to further enhance its leadership position ahead of potentially disruptive
tax changes

· Combination of Betfair US with FanDuel completed in July, creating a unique platform
to address the nascent US sports betting market opportunity

Outlook:

· Full year 2018 underlying EBITDA, pre-US sports betting, now expected to be between
£460m and £480m, reflecting recent trading momentum, the introduction of additional
taxes in Australia and the inclusion of losses from the FanDuel daily fantasy sports
business

> **Paddy Power Betfair, Peter Jackson, Chief Executive, commented:**
> “It has been a busy and successful few months for Paddy Power Betfair. We have
> made substantial progress against our strategic priorities and trading in Q2 was
> good, with all brands and operating divisions contributing to the Group’s double-
> digit revenue growth.
> In Europe, product enhancements and improved cross sell rates have led to stronger
> gaming revenue growth over the past few months for both brands, whilst customer
> satisfaction with the Paddy Power sports app has stepped up. Recent marketing 
> campaigns have also been successful with the Betfair brand increasingly identified
> as having the best odds. The World Cup was a showcase event for Paddy Power, with
> a series of successfully executed marketing campaigns leading to it being one 
> of the UK’s most talked about brands in social media conversations around the 
> tournament.
> In Australia, despite significant upcoming tax headwinds, Sportsbet continues 
> to target further market share gains by using its scale to increase investment
> in marketing, product and its value proposition.
> In the USA, we were delighted to add FanDuel to the Group’s portfolio of leading
> sports brands, creating the industry’s largest online business, with a large sports-
> focused customer base and an extensive nationwide footprint. Our FanDuel sportsbook
> is now available in New Jersey and with our recent partnership with Boyd Gaming
> we’re looking forward to launching in further states as the legislation progresses.
> We now have much better visibility of the regulatory and fiscal changes in the
> UK, Australia and the USA, and believe that our scale, leading customer propositions
> and strong balance sheet mean we are well positioned to build a business that 
> can generate sustainable shareholder returns over the long term.”

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