One bookmaker is really powering ahead in front of all the rest in the UK, as PaddyPower profits rise to such an extent that it is clear who has the lead in the market. Their pre tax profits for last year rose by fifteen per cent, a huge amount given the level of competition in the industry, bringing their total to one hundred and thirty nine million euros.
Among a string of successes last year was their addition to their brand of another forty four new shops on the UK high street, which brings their total to two hundred and nine – with another two hundred and thirteen already in place in Ireland. A large part of this year’s profits increase may be thanks to events such as the Euro 2012 football championship, the Olympics, and the Paralympics, with what many have dubbed a Summer of Sport meaning good business for the bookies.
A look at the statistics in any casino software guide indicates that the online side of their business is doing remarkably well, and is the biggest reason for their success as the largest contributor to their rising profit margins. They have seen a “disproportionately large” share of their profits coming from the mobile gaming market, according to chief executive Patrick Kennedy, as casino and betting apps for smart phones and tablets become ever more popular as time goes on.
“The average stake of the incremental new customer is lower than the existing customer base, so it is a positive sign of becoming a more mass market business. It can also be a function of the economic backdrop,” said Kennedy, adding that the value of average stakes had fallen as the customers “cut their cloth to suit the economic circumstances”. Total betting volumes were up seven per cent year on year, showing a great sign for the company’s future. They are currently looking to expand both in the UK and in Australia, although there are some fears that their profits could be reduced by the weakening value of both the pound sterling and the Australian dollar in relation to the euro.