Paddy Power Betfair today revealed a loss of £48m due to merger-related costs in the first half of this year - but reported revenue growth across all divisions.
Revenues rose 18 per cent to £759m in the six months to 30 June, up from £642m in the same period of last year. The company said it recorded double-digit growth in all four of its divisions: online; Australia; retail and the US.
Underlying operating profit was up 39 per cent to £148m from £106m, however the group reported an operating loss of £48m after merger-related items.
The firm also posted a loss per share of 68.3p, down from earnings per share share of 107.7p last year.
The group declared an interim dividend of 52p per share.
Why it's interesting
These are the first half-year results posted by the company since the merger of Paddy Power and Betfair completed on 2 February. The group said it had spent the six-month period focusing on integrating the businesses, but the impact on sales is clear, with revenues up across the board.
The firm was boosted by a strong Euro 2016 performance, which helped offset poor sportsbook revenues hit by "adverse" results at the Cheltenham Festival.
The bookmaking sector complained of the "worst Cheltenham festival ever" this year, and Paddy Power Betfair said today that as a direct result of the horse-racing event, its overall group sportsbook net revenue percentage for the half year was approximately 50 basis points lower than normal expectations.
What Paddy Power Betfair said
“Paddy Power Betfair has sustained good momentum through a period of considerable change," said chief executive Breon Corcoran.
"The restructuring is now largely complete and the merger synergies are being delivered ahead of schedule. We are creating a world-class operation by exploiting the unique assets and capabilities of each legacy business, particularly in the key functions of technology, marketing and trading.
"While our industry remains highly competitive and is exposed to the prevailing economic and regulatory environments, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth."
Bulking up by way of a merger and a Euro 2016 boost has helped Paddy Power Betfair withstand the hangover from the Cheltenham festival this year.