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Dublin-based Paddy Power has reported a revenue increase by almost a fifth for the first quarter of 2019.
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Much of this has been credited to Paddy Power's triumphant entry into the US market, primarily through its acquisition of FanDuel.
Revenue was up 17%to £478m in comparison to the same period last year, despite unfavourable soccer and horse results in the UK.
“In the U.S., FanDuel Group is making huge progress,” Chief Executive Peter Jackson said in a statement noting a New Jersey sports betting market share of 50 percent.
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“FanDuel remains well positioned to generate good returns on ongoing sports betting investment and for the rest of the Group we remain on track to meet our full year profit expectations despite the adverse sports results in Q1,” he said.
There has been a 47 percent jump in U.S. revenue for the three months to March 31, accounting for just over 15 percent of group sales.
Shares in the group were up 0.5 percent in Dublin at 0810 GMT but down almost 5 percent in London.
While more states continue to open up to legalized sports betting (Tennessee this week), Paddy Power and FanDuel do not necessarily have a strong foothold anywhere outside of New Jersey. The company currently also maintains a presence in West Virginia.
“As each long-anticipated regulatory change is implemented, the Paddy Power Betfair (PPB) investment thesis is becoming more straightforward,” analysts at Davy wrote in a note, referring to the increasing cost of regulation in established markets.
“The group and sector are not out of the woods. Yet, for the first period in some time, performance appears more balanced between those divisions reflecting the group’s underlying growth prospects (in the U.S. and increasingly Australia) and those still hampered by either external and/or internal challenges (Europe and retail).”
- Aaron Goldstein, Gambling911.com
