Paddy Power Betfair reported rising third-quarter revenues this morning, as new efforts to tap into US markets helped deliver much-needed sales in the wake of challenges closer to home.
The bookmaker’s shares edged up two per cent in early morning trading, with revenues hitting £83m in the three months to the end of September, marking a 12 per cent rise compared with the same period in 2017.
Despite a four per cent drop in retail betting within the UK and Ireland, US sales climbed 22 per cent as the firm ramps up its activity across the pond following a court decision that allows states to choose whether to legalise sports betting.
“A good conclusion” to this summer’s World Cup also gave a £22m boost to revenues, according to the firm.
The FTSE 100 firm also lifted its full-year guidance slightly, with underlying earnings projected to be between £460m and £480m, compared with previous estimates of £465m to £.480m
The news comes several days after rival bookmaker William Hill acquired offered to buy Swedish-listed Mr Green & Co AB for roughly £242m, in a sign of the growing shift into other European markets amid a UK clampdown on fixed-odds betting terminals.
Chief executive Peter Jackson added: “In the US, the exciting potential of the sports betting opportunity and the strength of our strategic positioning has been evidenced by our experience to date in New Jersey. FanDuel recorded a 30 per cent share of the sportsbetting market in September, driven by a market-leading customer proposition, our strong brand presence and the ability to cross-sell from our fantasy sports player base.
Overall, we are pleased with the substantial progress we continue to make against our strategic priorities. Our continued investment in brands and customer proposition means that all our businesses will exit the year with enhanced competitive positioning. Together with our scale and strong balance sheet this means we are better positioned to face the significant regulatory and fiscal headwinds that apply next year and to capitalise on the long-term industry growth opportunity.”