Paddy Power Betfair has published its ‘preliminary results’ for 2016, which shows “double-digit growth across all four operating divisions” with PPB group revenues hitting £1.5 billion.
Proforma EBITDA was up 35 percent to £400 million aided by an operating margin increase to 26 percent. The company reports an underlying group operating profit of £330 million (331p per share respectively), according to SBC News.
For statutory purposes, however, PPB will post a group loss of £5.7 million as the company absorbed 2016 merger costs between Paddy Power and Betfair. The enlarged enterprise disclosed that it had paid out £116 million in cash expenses during 2016.
Despite the merger costs, group officials told investors they remain confident of their future performance as it would declare a 165p per share dividend payback to its investors, SBC said.
Officials said group integration will continue throughout 2017.
“2016 was a transformational year for Paddy Power Betfair with much of the integration of the businesses completed sooner and more efficiently than expected,” said Breon Corcoran, Paddy Power Betfair Chief Executive. “The integration of our technology platforms is on track and customers are already seeing some benefits, including more markets and better odds. In keeping with our dual brand strategy, we are serving different parts of the market with distinct value propositions.”
