PaddyPower Betfair, one of the largest online casino operators in the world, announced its financial results for Q3 2017 via a statement on its corporate website. The quarter saw the company increase revenues by 9% to approximately $500m, driven mostly by an 11% uptick in its sports betting business. Operating profits also rose to approximately $150m, representing a 7% year over year increase.
“Q3 was an encouraging quarter for Paddy Power Betfair, with good stakes growth despite the absence of a major football tournament. Our international businesses performed particularly well. In Australia, the winning combination of innovative product and marketing excellence continued to deliver exceptional results, with revenue up 29%, while US revenue was up 18%,” said PaddyPower Betfair CEO Breon Corcoran in a statement.
Company Confident Despite Slow Online Growth
Despite the overall positive performance, there was one major problem in the figures. Q3 saw PaddyPower Betfair’s online revenues increase just a measure 3% from las year. This was particularly troubling given the fact that other operators are seeing huge increases in the mobile sector. An inability to compete in this sector would present major problems for the company down the road.
However, there are technological changes in the works that PaddyPower Betfair hopes will begin to turn the tide in the near future. Most notably, there is a coming integration of technology platforms for desktop and mobile that it is believed will create a simpler and richer experience for players.
“The integration of our technology platforms is nearing completion and the new Paddy Power desktop and mobile front ends are currently being tested with a small number of customers. We anticipate that all Paddy Power customers will be migrated to the integrated platform by early 2018. Completion of the integration will both improve efficiency and facilitate enhancement of our customer proposition”, Breon said.
Breon to Step Down
In other big news for the company, Breon Corcoran stated his intention to leave the company at the end of this year. However, he did not make it clear in the release why he would be departing, or if the move was the result of his own internal thinking, or if he was being forced to resign due to pressure.
“In the new year, I will hand over leadership of the Group to Peter Jackson and, while the industry remains highly competitive and is exposed to regulatory risks, I believe the business’ scale, leading capabilities and market positions mean it remains well placed to deliver sustainable, profitable growth”, he said.
Regardless, given the struggling online growth, the current situation at PaddPower Betfair will definitely be closely watched in the future.