Paddy Power posts 96% rise in pretax profit

Paddy Power bookmakers reported a 96 per cent increase in full-year pretax profit as it benefited from growth in the Republic…

Paddy Power bookmakers reported a 96 per cent increase in full-year pretax profit as it benefited from growth in the Republic.

For the year to December 31st, 2002, the group saw pretax profit rise to €17.8 million from €9.1 million last time on turnover up 46 per cent to a record €673.8 million.

Operating profit increased 101 per cent to €17.1 million and earnings per share were up 96 per cent to 31.38 cent.The group ended the year with a cash balance of €36.4 million, up 99 per cent.

A final dividend of 6.8 cent was proposed, making 10.2 cent for the full year, up from 5.1.

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Betting office turnover grew by 21 per cent; telephone betting saw strong growth - with total turnover of €122.9 million - an increase of 121.3 per cent.

Paddy Power said this growth was fueled by the decision to offer tax-free betting to its Irish phone business following changes to the British betting tax regime in 2001.

The chain's online division also showed growth - up 195.1 per cent; turnover for the year reached €102.8 million.

"2002 has been a record year for Paddy Power with excellent progress achieved in our strategic objectives," said chief executive Mr John O'Reilly.

He noted that the group saw strong growth in all channels of its core Irish business where significant further opportunities for expansion exist.

In the UK, encouraged by the success of its on-line, telephone and limited betting office estate, Paddy Power accelerated its shop expansion programme in 2002.

UK customers now account for the majority of the group's on-line customers and it continues to expect this division to break even in 2003.