Paddy Power Betfair reported £40 million in profits for the first quarter of 2016 despite a strong customer performance at Cheltenham 2016.
Paddy Power and Betfair completed their merger in February and reported that group revenues were up 16 percent to £339 million for its opening quarter performance.
The company also reported that it paid out £20 million to customers during the week of Cheltenham 2016 which recorded £250 million staked on the racing festival, according to SBC News.
The company’s digital division was responsible for 55 percent of group revenues, reporting a 17 percent increase to £195 million. That was driven by a 23 percent increase in sportsbook stakes and 5 percent growth in Exchange Product & B2B revenues, SBC said.
Revenue from digital rose 22 percent to £20 million in the U.S. and was up 25 percent to £58 million in Australia. Reporting on earnings metrics, PPB would declare Q1 2016 EBITDA up 27% to £59 million with operating profits up 36% to £43 million, the report said.
“This good start to the financial year is a credit to our colleagues, particularly at a time when we are bringing together two businesses,” said Breon Corcoran, CEO. “Our marketing, technology and operations performed well throughout the key spring racing period and we are now focused on preparations for Euro 2016.”
