In its Preliminary Results Announcement for the year to 31 December 2010, Paddy Power plc reported increased profit in all divisions and operating profit growth of 56% to €103.8 million. Gross win was up 88% in the online division and operating profit up 52% to €75 million – 72% of Group operating profit. The company reported a strong Australian performance with online gross win up 44% and operating profit of €19.5 million. paddypower.com saw operating profit up 26% to €57.5 million and gross win up 52% to €163.7 million.

Over the year Paddy Power opened nine new betting shops in Ireland, two acquired. Amounts staked in the Irish retail division were down by 4% but gross win rose 3%, slightly above normal. Paddy Power market share has risen to 30% with fewer competitors remaining in the market. In the UK the company added 31 betting shops in 2010, including 7 acquired. Amounts staked rose 34% with Over the Counter (OTC) gross win up 36%. Gross win on gambling machines was up 66% to €24.2 million. Operating profit in the UK rose a substantial 351% to €7.4 million.

Strong growth in UK telephone betting was offset by a decline in Ireland. Turnover in the UK was up 5% but in Ireland fell by 13%. Paddy Power has a strong presence in Mobile and Social Media such as facebook and twitter, apparently with more fans than next ten competing bookmakers. Mobile turnover is up more than three-fold to €112 million or 11% of sportsbook stakes. 31% of Paddy Power online sportsbook customers are now transacting via mobile, generating 19% of stakes. The online outlook is for new structural drivers (mobile, streaming, PPC, social networks) and significant potential for growth in the UK and Australia.

Commenting on the results Patrick Kennedy, Chief Executive, Paddy Power plc said: “These are record results for Paddy Power, with increased profit in all divisions. They demonstrate the benefit of our ongoing business development initiatives and investment, which position the Group well for further growth in 2011 and beyond. 2011 has started well for the Group with turnover up 16% and total gross win up 38% in the first two months versus the same period in 2010 in constant currency.” (E-03.08.11)

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