Sports Betting Helped Paddy Power Betfair Raise Revenues, Profit

Sports bets helped Paddy Power Betfair raise revenues and underlying profits in its latest quarter, "prompting the group to edge up its full year underlying earnings outlook" as it waits for its new CEO to start in January, according to Cat Rutter Pooley of the FINANCIAL TIMES. Revenues at the bookmaker for the three months to Sept. 30 were up 9% from the same period last year, or 8% at constant currencies, to £440M ($583M). That increase was "driven" by an 11% increase in sports revenue. Underlying EBITDA was up 7% to £121M ($160.3M). However, online revenues dropped 3% to £216M ($286.2M), with a 0.8% drop in sportsbook margins which the company blamed on "favourable sports results in the comparative period." In contrast, revenues from retail stores -- which could be hit by charges to rules on fixed-odds betting terminals -- increased 12% to £85M ($112.6M) (FT, 11/1).