Paddy Power the Irish online bookmaker is optimistic that it’s growth will continue well into 2010. According to a Bloomberg report Ireland’s largest bookmaker, expects things to be “good” next year mainly because of further expansion of the web wagering business and accelerating growth in Australia.
Patrick Kennedy, Chief Executive Officer for Paddy Power stated recently that earnings from online gambling could rise to more than 80 percent of profit “in the not too distant future.” Kennedy, who joined the company in 2005 and has seen the decline of profits associated with the wagers being smaller in home based shops due the recession also sees the internet growth as a boost to the business.
Paddy Power took control of Sportsbet, by buying up a 51 percent stake in Australian online bookmaker International All Sports Ltd. Customer numbers have increased by about 80 percent from a year earlier, since the company acquired the shares. While the company has not ruled out further acquisitions in Australia the CEO said they are not looking at anything at the moment.
With momentum in Australia looking very strong the company is also seizing the opportunity to expand it’s retail outlets and is adding more U.K. stores as other retailers exit the high street. Paddy Power is on course to meet its target of 150 outlets in the U.K. by 2011. Paddy Power has 87 stores in there after opening 19 more this year. Mr. Kennedy commented that,” If you’re trying to build a business on the U.K. high street, this is a fantastic environment,” adding, “Units are offered to us today that we would never have seen two years ago.”
On the French front as the market opens up there Mr. Kennedy said, “Large French companies who would have well-known brands and would know their way round the French market would be the sort of companies we would be looking at,” concluding, “We can provide them with the backend and they do the front end.”