Power Leisure has reported an annual operating profit of €8.5 million, down almost 20 per cent on the previous year.
The group, which runs Paddy Power Bookmakers, said its annual turnover for 2001 increased by €98.3 million to a record €461.1 million - an increase of 27 per cent. It said trading in the early part of the year had been positive.
Chief financial officer Mr Ross Ivers said despite the effects of the foot-and-mouth crisis earlier on in the year, business recovered quickly in the second half and that 2002 was expected to produce positive results as well.
"With the conclusion of the foot and mouth crisis that impacted turnover in the first six months of 2001, the second six months saw turnover increase by 35 per cent over 2001 with strong growth in all channels" he said.
"The LBO [Licensed Betting Office] and Dial-a-Bet margins were within their expected range while the online gross margin improved from 4.5 per cent to 7.7 per cent in the second half of the year".
Overall, turnover from the licensed betting offices grew by 17.7 per cent to €370.7 million resulting in an operating profit of €16.6 million - up 30.5 per cent.
Telephone betting turnover increased by 40.9 per cent to €55.5 million, giving an operating profit of €1 million - up 10.9 per cent. The group's telephone betting service Dial-a-Bet continued to expand during 2001 and ended the year with 25,582 registered customers.
The company was hit by losses of €9.1 million at its online division, despite a 400 per cent rise in turnover to €34.8 million. Chief executive Mr Stewart Kenny said he expects the online business to break even in 2003.