Paddy Power’s interim management statement yesterday showed growth of 42% in online revenue over the same period (1 July to 16 November) as last year.
This contrasted very favourably with the much lower 7% growth achieved in the first half of the year and was a reflection of more favourable sporting results for the bookmaker.
Despite the fact that they were losing more, bettors were still increasing their overall activity with growth of 18% in online bet stakes and 3% in the company’s now 562 retail outlets across Britain and Ireland.
A staggering 58% of online revenue now comes from smartphones and mobile giving a clear indication of the changing use of online services and entertainment among the public.
Earlier this year Paddy Power were part of an industry wide group established to oversee and promote responsible gambling. A major new advertising campaign is expected around this subject in January 2015.
The total number of active customers around the world grew by 33%, largely boosted by campaigns around the FIFA World Cup.
Online accounts form the bulk of the customer base and while the vast majority of Paddy Powers bets are currently landed in the Isle of Man to benefit from a low tax regime the global move towards regulating and taxing betting at the point of consumption is gaining ground.
Paddy Power’s Italian operation is regulated and taxed there, allowing the company to advertise. It’s revenues were up 72% in the interim statement.
The UK is also moving to a point of consumption tax for online operators which will have cost implications for the company but which establishes it in a well regulated environment with the continued ability to advertise and protects from new challenger brands for who the cost of entry to the market is now higher.
Legislation aimed at updating the Irish laws on betting and gaming are currently working their way through European approval and it is believed they will be in place during 2015.
Paddy Power maintains its main headquarters here and is a major employer with 600 new jobs being created over the next year bringing the total number employed here to just under 3,000.
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