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Paddy Power: Online Growth Offsets Retail Decline

Paddy Power released interim results for the second half of fiscal 2011. The Irish bookmaker reported that gross win (winnings before expenses) grew 12% from the same period last year, while amounts staked by punters rose 13%.

The company saw revenues from its UK and Irish-facing online operations increase 33% year-over-year. Amounts staked from sports betting climbed 31%, while the percentage of active sportsbook customers using the group’s mobile channels rose to 44%, up from 37% in the first half of 2011.

Online operations in Australia also saw a boost after the acquisition of Northern Territories-licensed bookmaker Sportsbet on March 1. Amounts staked were up 23% year-over-year, while gross win down under rose 4%.

The stellar growth online offset weaker results from brick-and-mortar operations. The Irish retail business saw a 6% drop in amounts staked and a 11% decline in gross win.

Management raised its full-year earnings estimate. Paddy Power now expects full-year earnings per share to rise by 15-20%. In August, the company projected full-year adjusted EPS of 1.93, a 14% increase.

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