With 59% growth in operating profit and 44% growth in online gaming gross win, 2007 could be considered a good year for Irish bookmakers Paddy Power. Making a preliminary results announcement for the year to 31 December 2007, the company said that despite the absence of the World Cup, turnover was up 13%. Sportsbook gross win was up 24%, gaming/machines up 47% and gross profit up 32% to €242 million.

Paddy Power opened 18 additional retail outlets in Ireland in 2007. Operating profit for the company’s 178 shops rose 57% to €34.6 million. The strong growth was attributed to brand, people, product and estate investment. Turnover at UK retail outlets was up 32% to €171.5 million, with gross win on machines up 58%. Paddy Power expects to at least double the size of its UK retail estate over the next three years.

Online operating profit rose 36% to €32 million in a market that continues to be competitive, according to Paddy Power. The company is also investing in new online businesses and launched an online financial spread betting business and a Spanish language betting business in 2007. Telephone turnover was 3% lower in 2007 to €296.6 million, driven by event changes, high gross win and migration to online. Operating profit growth at 7% was down from reported growth in 2006 of 65%. The number of telephone customers rose 8%.

Commenting on the results Patrick Kennedy, Chief Executive, Paddy Power plc said: "We have grown our business very substantially in 2007. Pre-tax profits have grown by 53% to €75.8 million, with strong growth in every division. Particular highlights included the 57% profit growth in Irish Retail, 44% growth in online gaming gross win and the turnaround of our UK Retail business. Furthermore, we have conducted a detailed review of the UK retail market, and will open shops in Glasgow and Manchester as well as in London this year. 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." (E-03.03.08)

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