Paddy Power reported a large growth in sales in the first four months of 2014, but was hit by "adverse sports results", which gave the company its two worst weeks ever profit wise. The first weekend came in January and the other in March, both this year, due to all the favourites winning their games in Premier League as well as in other major leagues.
Paddy Power reported that the sports betting part of the company was up with a massive 20% from January 1st to May 11th in the online sector and 3% in the live sector. “Accelerated new customer acquisition has been a key driver of online growth, with first-time bettors up 16 per cent in the period, compared to an 8 per cent increase last year,” the company said in a statement.
Total online net revenue increased by 1%, having 12% growth in b2b revenues. A shocking number however was the fact that 54% of all online revenues in April came from a mobile device, showing how the mobile device industry is taking over from the desktop one.
Long term they believe that the adverse results from earlier this year will be evened out and that they will come out of the year with a good positive result for their shareholders. 14 new betting shops has been opened in the UK as well as 11 in Ireland and net revenue went up 10% in the UK and 4% in Ireland.
Paddy Power further announced that their CEO Patrick Kennedy will be stepping down from his position in April 2015, a role he has filled out since 2006. The decision to announce it already was made in order to be able to facilitate a processor to him in a easy and smooth way.
“I have loved every day of being Paddy Power’s chief executive. It is as fun and as interesting a job as anyone could hope to have, and I have had the privilege of working with some enormously talented and supportive people over the years that I’ve been here. I have always had a personal view that after ten years at the helm, change is good, both for the business and the individual. With this in mind, I have today given notice to the board of my intention to step down next April, the tenth anniversary of my appointment.” Kennedy said.