Paddy Power benefits from ‘friendly’ results

The bookmaker and online gaming group reported a 55 per cent hike in 2010 profits to £89.7m, with the concluding stages of the World Cup contributing to a strong sporting result in the final six months.

Its gross win – the amount left by losing punters – rose 50 per cent to £381.6m and Paddy Power said 2011 had started well thanks to ongoing favourable sporting results and against weak comparatives.

Amounts staked rose 16 per cent and gross win increased 38 per cent in the first two months.

Last year’s figures were also flattered by its first full year of contribution from Australian betting firm Sportsbet, which Paddy Power recently snapped up. It bought 51 per cent of Sportsbet in 2009 and last week completed the takeover of the remaining stake.

Almost three quarters of its profits were generated online last year, according to the group.

The group’s Irish retail business traded through a tough year for the country’s economy, with a drop in average stakes per slip by cost-conscious punters leaving like-for-like total amounts staked down seven per cent.

However, the group saw earnings in the 207-strong Irish estate increase eight per cent as it opened nine new shops.

In the UK, its recent expansion saw operating profits leap from £1.1m in 2009 to £6.4m in 2010.

The business – which increased by 31 shops to 124 last year – also benefited from a stronger pound and a World Cup boost.

Paddy Power took home a gross win of £15.5m from last summer’s football tournament, with total stakes up to £74m.

It had a winning year for sporting results after being hammered in 2009 by unfavourable horse racing results and a clean sweep by Irish teams of rugby’s Grand Slam, Heineken Cup and Magners League titles.