2009 Bad Year for Bookmakers: Paddy Power Down
Paddy Power is the latest bookmaker to show a slide in profits for 2009, following Ladbrokes a 28% fall in profits over the same period and William Hill's 7% drop in full year profit. Paddy Power reported a 10% slide. Cheltenham did not go Paddy's way while the company took a pounding on Six Nations rugby and football saw a dearth of draws.
Paddy's gross win - the amount left by losing punters - was lower than expected, down by an estimated 29 million euros (£26.3 million) on sporting results after a strong 2008.
Pre-tax profits for the year to December 31 were 67.2 million euros (£60.8 million) from 79 million euros (£71.5 million) in 2008.
Last year's profits fall came despite a 31% rise in the amount staked by customers to 2.72 billion euros (£2.49 billion).
The company claims to be rebounding slightly this year as more favourable sports outcomes offset racing cancellations in snow-hit January
Chief executive Patrick Kennedy said: "Despite the economic problems, 2009 was a cracking year for Paddy Power punters on two fronts.
"The year saw a slew of punter-friendly sporting results which was the exact opposite to the experience of the prior year."
Paddy Power is Ireland's largest bookmaker and the third largest in the United Kingdom.
Jagajeet Chiba, Gambling911.com
