Paddy Power said in a trading update today that it is confident of meeting the current market consensus for 2009, diluted earnings per share (EPS) of approximately 113 cent, subjec to the impact of sporting results over the remainder of the year.  Turnover has grown strongly in the 19 week period from 1 July to 10 November 2009, assisted by greater customer winnings in 2009, the high level of race cancellations in August and September 2008 and continued market share growth. The company also announced a planned entry to the French market.

Paddy Power said sporting results overall in the period were adverse, although all channels experienced gross win percentages above their expected ranges since the start of October.

The company said in respect of Ireland and the UK, in constant currency, non retail and retail sportsbook amounts staked grew strongly by 24% and 11% respectively in the period. These growth rates reduced in the last month, as expected with the improvement in gross win percentages since the start of October. Retail growth has also benefited from UK expansion (with 22 shops opened in the year to date) and Irish market share growth.   

The company said in respect of Australia, the acquisitions of Sportsbet and IAS closed on July 1st and October 1st respectively.  While adverse sporting results were experienced in September, the integration of the businesses is progressing well and customer acquisition and turnover growth remain very strong.

The group, excluding its 51% owned Australian operations, had net cash of €75m as at October 31st. 

France

Paddy Power announced a planned entry into the French online sports betting market through an outsourcing contract with local operator PMU. Paddy Power will manage risk and pricing for PMU’s new online sports betting business for the five year period from 2010 as PMU expands into the French online sports betting market, which is scheduled to open up in the first half of next year.  PMU is the largest betting organisation in Europe with €9.3 billion of turnover in 2008 generated through 10,000 retail outlets as well as its remote sales channels. 

Paddy Power said the partnership, which will be officially launched by Taoiseach Brian Cowen today, is part of Paddy Power’s ongoing international expansion which will generate an additional 50 "smart economy" jobs in technology, risk management and quantitative analysis in the company’s Tallaght headquarters, by the summer of 2010. 

Paddy Power intends to create a further 200 high end jobs in Tallaght over the subsequent three years as it continues to exploit international growth opportunities by leveraging its risk management and e-commerce expertise. Paddy Power said it generates in excess of 50% of its profitability from outside Ireland and is the largest online corporate bookmaker in Australia since its acquisition of 51% of Sportsbet in May this year.  Paddy Power is also one of the largest online bookmakers in the UK.