Paddy Power released half year results yesterday which showed a 22% increase in revenues and a six month overall profit before tax of €77 million. This was achieved despite comparison to last year and a time frame that included the finals of Euro 2012.
Growth was slower in Ireland but that is increasingly a smaller part of the global business that is dominated by online betting and especially by bettors staking through the medium of their mobile phones.
43% of online revenues at Paddy Power in the first six months of 2013 were driven by mobile, a figure which has doubled over the past twelve months.
Today’s Member content looks at some of the figures around mobile engagement in sport and betting is one of the clearest ways in which engagement can be turned into a financial return for sporting organisations.
Paddy Power itself last week signed a betting partnership deal with Arsenal, who together with Celtic have advanced once more to the lucrative group stages of the Champions’ League. That deal will be worth a seven figure sum to the club in terms of up front payments and revenue shares.
The value of betting within the Premier League can be seen by the fact that many clubs are now in a position to sign double deals with a European and an Asian betting partner. In Arsenal’s case they signed up with Bodog for the far east and that alone will add another seven figure sum to the bottom line.
Every Premier League club has a betting partnership covering online and at their grounds. Start up Irish firm Betbright have also entered the game as official stadium betting partner of Aston Villa as well as Sheffield Wednesday and Wolves in what is now known as the Skybet Football League.
The presence of betting companies at the top table of Irish sport has been less noticeable than elsewhere. This is ironic given the liberal legislative regime here and it being the home base of Paddy Power and Boylesports.
Powers are an official partner of the IRFU but there is no official betting partnership in place as yet either at the FAI or the GAA. Derry and Louth have or had betting company partnerships in gaelic games but it is an area where international growth in sponsorship and commercial partnership has not yet filtered through to the domestic market.
Sports Tourism Seminar at Croke Park (September 19th)
Sport for Business 20/20 at Ulster Bank HQ (October 8th)
The Business of Youth Sport Seminar (November 28th)
