Investors in Irish bookmaker, Paddy Power, will be pleased to read the recently published preliminary financial results, as the company reveals it plans to return up to €392 million to shareholders.
Increase in net revenue at Paddy Power
The good news comes as a result of an 18% increase in net revenue, which is now at €882 million. Paddy Power also saw its pre-tax profits rise to €167 million from 21% in the previous year. Following the publication of its preliminary results, shares continue to climb to more than €75 each, meaning the betting giant is now valued at more than €3.6 billion. The boost in Paddy Power’s revenue and profits has come as a result of the increase in the number of online bets placed as the online operation accounts for 77% of the bookies’ operating profit. The group’s chief executive, Andy McCue, said: “2014 was an excellent year for Paddy Power with robust double digit growth in stakes, revenues and profits, and a marked increase in customer acquisition.” Paddy Power is now in a strong position to continue growing in 2015, thanks to its three-pronged approach: online, mobile, and retail. The group could benefit from the depreciation of the Euro, to the tune of €5 million. However, Mr McCue is still looking ahead and considering how the brand can adapt to the needs of its customers. One of the key factors that Paddy Power needs to focus on is attracting and retaining customers. As Paddy Power has €285 million in its bank accounts, of which customer balances make up just €67 million, the company is planning to return €392 million to shareholders at €8 per share.