Paddy Power Betfair revenue increases for Q3 as US division grows
Paddy Power Betfair boosted its Q3 revenue by 10% year-on-year, posting a total of £483m ($628m).
Online revenue went up 15% to £248m, while retail revenue declined 4% to £82m.
Following the merger of Betfair US with FanDuel, this has seen US sports revenue increase by 3% to £377m on a pro-forma basis. The operator expects US sports betting EBITDA losses to be around the £25m mark, but this is due to marketing and promotional investment in New Jersey.
Excluding these start-up losses, pro-forma EBITDA was in fact up by 6% on a constant-currency basis.
Peter Jackson, PPB Chief Executive, said: “This momentum, which was evident in both Paddy Power and Betfair, is driven by enhancements in product and good execution in promotions and marketing.”
“In the US, the exciting potential of the sports betting opportunity and the strength of our strategic positioning has been evidenced by our experience to date in New Jersey.”
In Australia, revenue declined by 2% due to sports results in August. However, Paddy Power Betfair claims the small decrease reflects strategic investment in promotional generosity, to enhance its competitive positioning.
Jackson said: “Overall, we are pleased with the substantial progress we continue to make against our strategic priorities. Our continued investment in brands and customer proposition means that all our businesses will exit the year with enhanced competitive positioning.”