Betfair (LON:BET) hiked its interim dividend after a strong first half ahead of its merger with rival bookie Paddy Power (LON:PAP).
The bookmaker has ramped up its dividend by some 67% to 15p from the 9p pay-out shareholders received this time last year, as sales and profits rose in the first half.
Revenue in the six months to October climbed 15% to £274.4mln (£237.6mln in 2014) while operating profit lifted 12% to £67.2mln (59.9mln).
The group performed particularly well, given the tough comparative period which featured last year’s FIFA World Cup.
Breon Corcoran, chief executive, said the results were “ahead of our original expectations,” adding that its two largest markets, the UK and US, accounted for most of its growth.
Growth in its Sportsbook drove revenues higher, with stakes up some 93% year on year, she said.
Betfair also updated on the timeline of its merger with Paddy Power, which it expects to be completed in the first quarter of 2016, subject to shareholder and regulatory approval.
The new group, which will be called PaddyPower Betfair, will create one of the world's largest public online betting and gaming firms with revenues of more than £1.1bn.
It comes as Ladbrokes’s (LON:LAD) shareholders approved its £2bn merger with Gala Coral on Tuesday.
Shares in Betfair rose 3.4% or 118p to 3,599p on Wednesday.