Pre-tax profits up at Paddy Power

Bookmaker Paddy Power has reported pre-tax profits of €104.2 million for the 12-months ending December 31st 2010, a rise of 55 per cent on the preceding year.

Revenues increased 39 per cent to €3.83 billion while operating profit rose 52 per cent to €75 million and adjusted diluted EPS growth was up 40 per cent to 168.9 cent.

The company said that almost two thirds of Paddy Power's profits were generated outside of Ireland last year. In 2010 it recorded an almost six-fold increase in retail operating profit from its British retail operations to €7.4 million. Operating profit in Ireland was up 8 per cent to €17.6 million, equivalent to 17 per cent of total group profits.

Its retail operations in Australia generated operating profit of €19.5 million, up 44 per cent.

Almost three quarters of Paddy Power's profits were generated online last year.

Net cash at the end of February 2011, less cash expenditure of €91 million related to the Sportsbet acquisition, remained strong at €87 million or €47 million excluding customer balances.

The board is proposing to increase the final dividend by 29 per cent to 50 cent per share. This would bring the total dividend in respect of 2010 to €36.4 millon or 75 cent per share, an increase of 28 per cent on 2009.

Chief executive Patrick Kennedy said that in the ten years since the group flotated in 2000, it has increased turnover from €363 million to over €3.8 billion, an average annual growth rate of 27 per cent, and earnings per share at an average annual growth rate of 26 per cent.

"We continue to invest, particularly in our online and technology capabilities, to maintain that virtuous circle of revenue growth, generating more cash for investment, to drive further revenue growth," he said.

"As a result of the substantial opportunities in our markets, and our positioning to avail of them, we look forward to 2011 and beyond with confidence," he added.