Profits Rise 12% At Paddy Power Plc

The share price of Paddy Power (LSE: PAP) — the Irish bookmaker — is down close to 1% this morning, despite what the company describes as “a very good first half” in its interim results for the first six months of 2013, released this morning.

Pre-tax profit was up 12%, at €77m, on net revenue that had risen 22%, to €379.8m (on a constant currency basis).  Earnings per share grew 13%, to 137 cents, and the board has proposed a 15% increase in the interim dividend, raising it to 45 cents per share.

Commenting on the results, chief executive Patrick Kennedy said:

Paddy Power had a very good first half.  Revenues increased in every division with very strong growth of 29% in online, which delivered over three quarters of group profit.  The excellent performance of our Australian business was a particular highlight.  Almost two thirds of the Group’s online sportsbook customers now transact with us via mobile and this continues to grow.

“Despite very poor recent sports results, we are on track to achieve low to mid double digit operating profit growth in constant currency in 2013.  Currency translation headwinds if maintained at current levels for the full year would lower this constant currency year-on-year profit growth by 4%.  The Board is confident of the Group’s prospects for the balance of the year and beyond.

At the time of writing Paddy Power’s share price is 59.49p. That’s down over 4% so far in 2013, but up over 12% on this time last year, and up 260% over the past five years.

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> Jon doesn’t own shares in Paddy Power.