Marketing Spend Lifts Paddy Power Q3 Revenues
DUBLIN - (Reuters) – Increased marketing spending helped Irish bookmaker Paddy Power to third-quarter revenues up 23 percent on last year, while favourable results boosted its returns on sports betting.
The Dublin-based group has been more adept than larger rivals at reacting to punters moving to online gambling and saw internet sports betting activity climb by 28 percent in the three months to Nov. 14.
Trading was boosted by a 74 percent increase in marketing spending in the first half, though betting activity during the Olympic Games was slower than during the Euro 2012 soccer tournament earlier in the summer.
The group said that it plans to open 45 new shops next year in the United Kingdom, where like-for-like net revenue was up 5 percent in the third quarter.
Davy Stockbrokers said in a note that higher than expected revenue growth of 34 percent in Australia made up for slightly weaker than expected revenues online and left unchanged its full-year forecast for 18 percent growth in earnings per share.
Paddy Power, which has increased its presence in Britain as well as Australia, Canada and France in recent years, did not give details of its performance in the Italian market it entered this year.
