Paddy Power Betfair’s Q3 Trading Updated shows 10% revenue increase, and 15% online revenue rise.
Paddy Power Betfair’s Q3 Trading Update revealed a revenue increase of 10% year-on-year, coming in at £483m ($628m).
Breaking it down further, online revenue increased 15% to £248m, but there was a fall of 4% to £82m in retail.
As to be expected, Betfair US’s merger with FanDuel saw an increase in US sports revenue, which rose by 3% to £377m pro-forma.
However, US sports betting EBITDA losses are expected to come in at around £25m as the firm factors in extensive promotional and marketing activities associated with launching sports betting in New Jersey.
If these exceptional launch costs are factored out, then pro-forma EBITDA was up 6% on a constant-currency basis.
With the FanDuel deal, the Paddy Power Betfair Group’s US business now consists of FanDuel fantasy sports offered in 41 states, TVG horseracing in 33 states, the FanDuel sportsbook in New Jersey and West Virginia, and the Betfair casino and exchange in New Jersey.
PPB Chief Executive, Peter Jackson commented:
“In the US, the exciting potential of the sports betting opportunity and the strength of our strategic positioning has been evidenced by our experience to date in New Jersey.
“FanDuel recorded a 30% share of the sports-betting market in September, driven by a market-leading customer proposition, our strong brand presence and the ability to cross-sell from our fantasy sports player base.”
Commenting on the group’s performance in Europe, where PPB has started to win market share in the UK again, Jackson said:
“Q3 was a good quarter for the Group. In Europe, the encouraging momentum that we saw in Q2 accelerated further, with online revenue up 15%. This momentum, which was evident in both Paddy Power and Betfair, is driven by enhancements in product and good execution in promotions and marketing.”
The company saw Australian revenues take a 2% hit in August, likely reflecting sports results, despite the firm’s claim that it was down to strategic investment in promotional generosity, with Jackson saying:
“In Australia, we continue to see very good scope to enhance Sportsbet’s leading customer proposition and target additional market share gains.
“Strategically, Q3 was a key period for increased investment in promotional generosity given both the sporting calendar and the changing brand landscape and this investment is driving increased customer activity.”