Leap in online bets helps Paddy Power to overcome a Cheltenham to forget

The Dublin-based group, which has 228 shops in the UK but generates over three-quarters of its profits from the internet, said almost two-thirds of its online sportsbook customers now place bets via mobile devices.

Profits reached 77m euros (£66.2m) in the six months to June 30, despite a Cheltenham to forget for Irish bookies after a third of the races were won by the favourite and, for the first time, the majority won by Irish-trained horses.

Recent sporting results have also gone against the company in recent weeks but it said it remained on track for profits growth over the full year.

The amount staked by customers in its UK shops jumped by 16 per cent to 302m euros (£259.7m) in the half year, resulting in profits growth of 3 per cent to 7.8m euros (£6.7m). This was despite the impact of a new gaming machine tax regime, which Paddy Power said cost it 900,000 euros (£774,000).

It opened 19 shops in the UK over the period, but with less than 3 per cent of the market it said it plans to open at least 40 shops annually.

Online profits increased by 19 per cent to 57.5m euros (£49.5m), with the number of active customers of 1.4m up 23 per cent in the period.

Patrick Kennedy, chief executive, said: “Paddy Power had a very good first half. Revenues increased in every division with very strong growth of 29 per cent 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.

“The second half of the year has started very well from a turnover point of view with sportsbook stakes up 25 per cent in online and 4 per cent in retail on a like-for like basis.”