Publishing its results for the three months to September 30, leading betting and gaming operator Paddy Power Betfair saw growth in online make light of flat performances in its retail and Australian businesses, with group revenue up 12 per cent year on year (in constant currency terms).
Online revenues climbed 15 per cent year on year in Q3, up to £248m from £216 in Q3 2017. Online betting at PPB recorded an 11 per cent year-on-year rise, to £173m, while online casino leapt 26 per cent in the period, to £75m.
By contrast, retail dropped four per cent year on year, to £82m, while the Australian business fell nine per cent, to £101m – although in Australian dollars the bump was softened to just a two per cent decline.
Following the July merger of Betfair US with FanDuel, PPB’s US business now comprises revenues from FanDuel fantasy sports (in 41 states); TVG horseracing (33 states); the FanDuel sportsbook (in New Jersey and West Virginia); and the Betfair Casino and Exchange in New Jersey.
Revenue in the US business was up 22 per cent, with underlying growth in each existing business supplemented by $5m of sports betting net revenue. Excluding sports betting, revenue was up 14 per cent stateside, comprising 18 per cent growth in fantasy, a seven per cent rise in TVG and, notably, 40 per cent growth in the Betfair Casino.
With reference to the nascent betting industry in the US, PPB said it is “encouraged by both the indicative demand for regulated sports betting products and by the initial market share that FanDuel has obtained.”
Calling it “a good quarter” for the group, chief executive Peter Jackson said in a statement: “In Europe, the encouraging momentum that we saw in Q2 accelerated further, with online revenue up 15 per cent.
“This momentum, which was evident in both Paddy Power and Betfair, is driven by enhancements in product and good execution in promotions and marketing.
“In Australia, we continue to see very good scope to enhance Sportsbet’s leading customer proposition and target additional market share gains.
“In the US, the exciting potential of the sports betting opportunity and the strength of our strategic positioning has been evidenced by our experience to date in New Jersey. FanDuel recorded a 30 per cent share of the sportsbetting market in September, driven by a market-leading customer proposition, our strong brand presence and the ability to cross-sell from our fantasy sports player base.
“Overall, we are pleased with the substantial progress we continue to make against our strategic priorities,” he said.
