A GOOD YEAR FOR THE IRISH

(397) (7-September-2006)

Paddy Power reports first half profits up

Aided by good World Cup football returns, Ireland's top bookie group Paddy Power PLC reported an 11 percent gain in first-half net profit this week.  Growth in the group's Internet, telephone and over-the-counter gambling markets was also encouraging.

The Dublin-based company said its net profit from January to June rose to Euro 17.5 million (US$22.4 million) from Euro 15.8 million over the same period in 2005. It took a total of Euro 877.6 million (US$1.12 billion) in bets over the period, up 27 percent from last year's Euro 690.1 million.

Company spokesmen said that Paddy Power had opened 27 more traditional betting shops in Ireland and Britain over the past year, where it continued to collect most of its revenues, taking the total to 205. But growth was stronger on its three Web sites, which run books on sports and current affairs, casino-style games and poker. The company launched online bingo this year to appeal to female gamblers and a German-language site to capitalise on the World Cup in Germany.

"In the World Cup, we achieved our absolute profit target, but on higher than expected turnover, as the punters won a fortune early on with 18 of the first 22 matches being won by the favourites," Chairman Fintan Drury said in a statement.

Chief Executive Patrick Kennedy said the company was looking forward to the liberalisation of betting rules in Britain next year, particularly the ability of betting shops to stay open as required.

Cash reserves over the six-month period rose 30.6 percent to Euro 68.3 million (US$87.4 million), which includes Euro 12.9 million (US$16.5 million) in deposits in customers' accounts used for placing bets online or over the phone.