Paddy Power, the Irish betting group, today reported profit before tax in H1 2009, fell 34% to €34.1m but performance has been robust on the period.

The group had an increased market share in all our divisions and turnover growth of 12% in constant currency despite the economic conditions; an acceleration of growth in the online division, with turnover up 32% in constant currency and a 20% increase in active customers; continued operating profit growth in the online division of 3% to €22m or 65% of group profits (H1 2008: 47%) and increased market share in Irish Retail from approximately 26% to 29%

Cash balances at the end of the period were €87m, an increase of €10m compared to €77m at the end of 2008 (including cash balances held on behalf of customers of €18m and €17m respectively).

The directors proposed an interim dividend of 19.5 cent per share (2008: 18.6 cent per share) which will be paid to shareholders on 25 September 2009.

Paddy Power said, in respect of the outlook, that from 1 July to 23 August, in constant currency, non retail and retail sportsbook amounts staked have grown strongly, by 31% and 7% respectively, while poor sports results have resulted in sportsbook gross win percentages being below expected ranges. The growth in amounts staked has been helped both by a high level of race cancellations in the comparable period in 2008 and the recycling of greater customer winnings in 2009. Non sportsbook gross win has increased by 17%.

The group says overall, the strong turnover growth, along with the Irish government's decision to postpone the introduction of a 2% betting tax, has offset the impact of the poor sports results. The group therefore remains on track to meet the current market consensus for 2009 adjusted diluted EPS of approximately 111 cent, subject, "as always, to the volatility that could arise from sporting results."

Commenting on the results Patrick Kennedy, Chief Executive, Paddy Power plc said: "It's been a great start to the year for punters and a positive start to 2009 for Paddy Power. A swing in the year-on-year run of sporting results, a normal occupational hazard for bookmakers, has driven a reduction in our operating profit in the period but we're happy with the strong underlying performance.  

In our Online, Irish Retail, UK Retail and Telephone divisions, we have grown our market share substantially. We now have a very strong position in the substantial UK online betting market, which is forecast to continue to grow strongly. This market share growth is not an accident - value, product and brand are in our DNA. We give better value than our competitors, combined with strong product and the best brand in the business.  

It's early days in Australia, but Sportsbet is an excellent fit with Paddy Power and has buckets of potential to build on its market position as we complement its existing skills and experience."

Results detail