Half-year figures from Irish bookmaker Paddy Power (PAP) were affected by currency headwinds at the group's large Australian business, €6.9m (£6m) of start-up costs in Italy, and a higher proportion of horse race favourites having come in as winners. Overall, half-year operating profit rose by a weaker than expected 11 per cent year on year to €75.4m.
Establishing the Italian business meant that online costs grew 33 per cent in the period to €145m, compared with a 29 per cent rise in online revenue to €243m. Still, the online side also saw operating profit rise 17 per cent to €57.5m and the unit now generates around three-quarters of Paddy Power's total profits. The retail over-the-counter division, meanwhile, saw a mixed half with the new machine gaming tax having helped to keep UK retail profit largely flat at €7.8m amidst competitive conditions - that off-set like-for-like sales growth here of 3 per cent. The Irish retail business was hit hardest by poor sports results, particularly at the Cheltenham Festival - operating profit there slid 16 per cent to €7.6m, although the bookie did manage its first improvement in stake size since 2007.
Broker Numis Securities expects full-year pre-tax profit of €156m, giving EPS of 282¢ (from €139m and 251¢ in 2012).
PADDY POWER (PAP) | ||||
---|---|---|---|---|
ORD PRICE: | 5,975¢ | MARKET VALUE: | €2.93bn | |
TOUCH: | 5,969-5,990¢ | 12-MONTH HIGH: | 7,133¢ | LOW: 5,001¢ |
DIVIDEND YIELD: | 2.7% | PE RATIO: | 18 | |
NET ASSET VALUE: | 589¢* | NET CASH: | €214m |
Half-year to 30 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
---|---|---|---|---|
2012 | 311 | 68.7 | 124 | 39.0 |
2013 | 380 | 77.0 | 139 | 45.0 |
% change | +22 | +12 | +12 | +15 |
Ex-div: 4 Sep Payment: 27 Sep *Includes intangible assets of €157m, or 319¢ a share £1=€1.16 |