Paddy Power plc PAP Interim Management Statement

  Paddy Power plc (PAP) - Interim Management Statement

RNS Number : 2779R
Paddy Power plc
16 November 2012




16 November 2012 - Paddy Power plc - Interim Management Statement



Following its interim results for the six months to 30 June 2012 announced on
29 August, Paddy Power is today updating the market on trading in the period
from 1 July to 14 November 2012 ("the period"). All percentage comparisons
are with the equivalent period last year expressed in constant currency,
unless otherwise indicated.

Overall performance in the period was in line with expectations, with strong
growth in net revenue of 23% and continued significant investment. Activity
levels outside of Australia were moderated by a number of factors, including
weather related racing cancellations and the Olympics. However this was
offset by favourable sports results which resulted in a gross win percentage
above our normal expectations and the equivalent period last year.



In Australia, online turnover was up 24%, with no slow down in growth compared
to the first half of 2012, notwithstanding the significant step up in growth
that we achieved in the second half of last year. Within paddypower.com,
sportsbook turnover maintained good momentum, increasing by 28%. While
gaming/B2B net revenue growth slowed during August and September, it returned
to strong growth in October and grew by 14% in the period overall.

Our leading positions in mobile betting are positively impacting online
turnover growth and sportsbook gross win percentages. In October, mobile
turnover as a percentage of total online sportsbook stakes was 27% in
Australia (June: 25%) and 45% in paddypower.com (June: 41%). The most rapid
mobile penetration continues to occur in gaming with mobile gross win in
October accounting for 28% of Paddy Power Casino (June: 19%) and 25% of Paddy
Power Games (June: 20%).



We also continued to progress our portfolio of newer online businesses and to
invest in exploring other development opportunities to contribute to longer
term growth.



Despite a competitive high-street environment, UK Retail performed well with
like-for-like net revenue up 5%, driven by strong sportsbook growth of 12%,
offsetting a decline in machine gaming of 4%. We now expect to open up to 45
new shops in the UK in 2012. Irish Retail also performed positively with
like-for-like stakes up 0.4% and net revenue up 8%.



The Group retains significant financial flexibility with net cash of
approximately €169 million at 14 November, excluding customer balances.



Details of financial and operational performance measures for the period are
set out below:

                                          Increase / (Decrease)
                                                     
Group                                                
Sportsbook amounts staked                          +20%
Total net revenue                                  +23%
                                                    
Online (ex Australia) - paddypower.com
Sportsbook amounts staked                          +28%
Sportsbook net revenue                             +26%
Gaming/B2B net revenue                             +14%
Total net revenue                                  +21%
                                                    
Australia                                            
Online amounts staked                              +24%
Online net revenue                                 +39%
Total net revenue                                  +34%
                                                    
UK Retail                                            
Sportsbook amounts staked - like-for-like           +9%
Sportsbook net revenue - like-for-like             +12%
Machine gaming net revenue - like-for-like         (4%)
Total net revenue - like-for-like                   +5%
New shops opened year to date                       38
                                                    
Irish Retail                                         
Amounts staked - like-for-like                     +0.4%
Net revenue - like-for-like                         +8%
                                                    
Telephone (ex Australia)                             
Net revenue                                        +32%
                                                    





                                     ENDS





For reference:

Patrick Kennedy Cormac McCarthy Jack
Massey

Chief Executive Chief Financial
OfficerDirector of Finance & Company Secretary

Paddy Power plc Paddy Power
plcPaddy Power plc

Tel: + 353 1 905 1011 Tel: + 353 1 905 1013Tel: +
353 1 905 1013





Billy Murphy / Karen
Ferris Jon Earl / Rob
Greening

Drury
Powerscourt Limited

Tel: + 353 1 260
5000 Tel: + 44 20
7250 1446

Mobile: + 353 86 317 1248 (KF)
Mobile: + 44 7809 698 259 (RG)



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


IMSFFIFWIFESEDF -0- Nov/16/2012 07:00 GMT
 
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