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Paddy Power Betfair PLC sees competitive market despite merger

The Irish bookie said group operating profits rose 10% to €180mln on a 24% increase in revenue to €1.1bn
Paddy Power Betfair PLC sees competitive market despite merger
The merger last month created one of the world's largest online betting and gaming companies

Shares in Paddy Power Betfair plc (LON:PPB) fell after the newly merged gaming group rang up higher profits but cautioned on a competitive outlook.

The stock dropped 185p to 9435p in lunchtime trading after the Irish bookie said group operating profits rose 10% to €180mln on a 24% increase in revenue to €1.1bn.

The merger, which was finalised last month, created one of the world's largest online betting and gaming companies.

On a proforma basis the enlarged group had £1.32bn of revenues and £229mln of underlying operating profits in the year to December 31. Online business contributed 80% of group revenues and 87% of operating profits.

PPB said it would need to cut jobs to remove some duplicated roles from its 7,000-strong workforce in the enlarged company, but did not say how many.

Chief executive Breon Corcoran said the new financial year had begun well, adding: "We continue to operate in a highly competitive industry. We are excited however, by the opportunity to enhance our competitive position."

The group said it benefited from double-digit growth across all its online and retail divisions. It boosted its full-year dividend by 18% to 180 cents per share.

Online revenue lifted 23% and online operating profit rose 11% to €152mln. UK retail revenue put on 15% and 6% on a like-for-like basis while operating profit increased 12% to €23mln.

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Newswire
June 17 2015

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