by Renee Israel
Paddy Power Betfair has seen unfavourable results in its sports division in the final quarter of 2016. Despite the fall in the fourth quarter, the Paddy Power Betfair is expected to post favourable full-year results. The official preliminary results are set for release on March 7th, 2017.
Paddy Power Experiences Year-On-Year Growth
Although there was a dip in the company's sports results at the end of 2016, Paddy Power Betfair has seen its full-year revenue increase by 18% in a year-on-year analysis. While not yet confirmed, it looks as if the company's sportsbook stakes will be up from £8 billion to £9.89 billion, showing a large increase of 24%.
In 2015, Paddy Power Betfair recorded revenue of £1.3 billion. In 2016, the company ended the 12 months from January to December with revenue of about £1.55 billion, equivalent to €1.8 billion or $1.9 billion. The company's gaming revenue was up by 14%, reaching approximately £353 million. Paddy Power Betfair's sports revenue appears to have increase by 19% in year-on-year results to an amount of £1.12 billion.
In the fourth quarter of 2016, unfavourable results for the company, which were customer-friendly results, cost around £40 million. There were a number of punter-friendly outcomes with the European football results, with the year ending before the company could recoup its losses. Despite the cost to the company, sportsbook stakes increased by 28%. The rise in sportsbook revenue is expected to reach 12% and gaming revenue is increasing as expected by a predicted £89 million, or 6%.
Paddy Power Betfair Lose on Trump Win
Paddy Power Betfair has been confident that Hillary Clinton would win the United States elections. After it became increasingly likely that Donald Trump had a chance of winning, the tables began to turn for the betting company. It is estimated that Trump's victory in the presidential election race cost Paddy Power Betfair about £5 million.
In 2015, Paddy Power plc and Betfair Group plc agreed on a merger. The merger took place in February 2016 forming the single entity of Paddy Power Betfair. The merged company has four divisions including its online presence, and its retail brand, which operates 600 betting shops in the UK and Ireland. About 50,000 people are employed in the company's Paddy Power betting shops. The other two divisions are Sportsbet in Australia, and a horseracing and betting network in the United States.