Gambling stalwart Paddy Power Betfair has reported an increase in revenue from online gaming during the third quarter of 2018.
Although there was a mixed picture to their earnings, with overall revenue remaining flat, there was a significant boost to online betting revenue, which increased by 15 percent to a total of £248 million, boosted by the World Cup in Russia this summer, which generated £22 million in the quarter.
In total, the group reported revenue of £483 million for the three months up to September 30, a result that was helped by the acquisition of US company FanDuel in July, but hit by foreign exchange issues. As a result of these figures, Paddy Power Betfair has increased the lower end of its yearly earnings outlook and now expects full year earnings to end up between £465 and £480 million.
Boost from US Revenue
Although the company saw revenue decline in Australia due to disappointing sports results, there was a significant boost from US revenue, which was up 22 percent. In May this year, the US Supreme Court’s decision to strike down the federal law banning sports betting has enabled US states to regulate their own sports betting markets and Paddy Power Betfair has been one of a number of European betting operators that have attempted to exploit the new market.
Speaking about the results, the CEO of Paddy Power Betfair, Peter Jackson, said that the figures put the company in a good position to face the challenges of the next few months:
Together with our scale and strong balance sheet this means we are better positioned to face the significant regulatory and fiscal headwinds that apply next year and to capitalise on the long-term industry growth opportunity.”
Financial growth concept image from shutterstock
