Paddy Power ready to move into Italian market

LISTED BOOKMAKER Paddy Power has taken the first step on its planned €6 million expansion into the Italian market this week.

Chairman Nigel Northridge told shareholders at its annual general meeting in Dublin yesterday that betting revenue grew throughout its operations in Ireland, Britain and Australia in the first four months of this year.

Total net revenues in the four months ended April 30th is up 28 per cent, driven by a 31 per cent increase in its online businesses and 26 per cent in its bookie shops.

Chief executive Patrick Kennedy said after the agm that the group launched its Italian website this week. In March, it said it was planning to launch in the Italian market ahead of the Euro 2012 soccer championships. Italy is Europe’s biggest gambling market.

Mr Kennedy said it was a “soft launch” with no promotion or marketing at this stage. In March, Paddy Power predicted the expansion would cost about €6 million.

The company is also planning to invest further in its mobile gaming and betting and other business opportunities.

Paddy Power also provides risk management and other services to the French Pari-Mutuel – the state-owned tote betting company – and to the British Columbian lottery in Canada.

Last year it bought Bulgarian-based technology developer Cayatano. The company has applied for a licence in Nevada, one of a number of US states looking at legalising online sports betting.

The amounts staked by Paddy Power customers in the first four months of this year increased by 16 per cent.

All of its businesses have grown this year, with the exception of its Irish bookmaker shops, where the amounts staked by customers fell by 4 per cent. Net revenues increased by 15 per cent in this operation on the back of favourable sports results.