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A BUOYANT end to the year means Paddy Power expect to post a better-than-expected operating profit of €180 million for the year ended 31 December, 2015.
The company said the final seven weeks of last year had been "good" in terms of trading and they were upgrading their forecast for ebitda (earnings before interest, taxation, depreciation and amortisation) as a result.
With the blockbuster £5 billion merger with Betfair set to take place next week, Paddy Power issued the trading update on Wednesday in which it revealed a final dividend for 2015 of €1.20 per share.
Reacting to the update from Paddy Power, business analysts Davy said the figures producted by the bookmaker were "impressive", especially given the introduction of the point of consumption tax last year, and that the merger with Betfair was coming at a good time for both companies.
They said: "It would be easy to overlook just how impressive the underlying earnings growth at the group was last year. We estimate that additional gaming taxes in the UK cost Paddy Power an incremental €52.3m year-on-year.
"If we adjust the 2015 outcome for these charges, we estimate that underlying earnings growth was actually 42 per cent. By that same measure, in the half year to the end of October, Betfair reported underlying earnings growth of 45 per cent.
"It is clear that both Paddy Power and Betfair enter this merger with excellent underlying momentum."
The company said the final seven weeks of last year had been "good" in terms of trading and they were upgrading their forecast for ebitda (earnings before interest, taxation, depreciation and amortisation) as a result.
With the blockbuster £5 billion merger with Betfair set to take place next week, Paddy Power issued the trading update on Wednesday in which it revealed a final dividend for 2015 of €1.20 per share.
Reacting to the update from Paddy Power, business analysts Davy said the figures producted by the bookmaker were "impressive", especially given the introduction of the point of consumption tax last year, and that the merger with Betfair was coming at a good time for both companies.
They said: "It would be easy to overlook just how impressive the underlying earnings growth at the group was last year. We estimate that additional gaming taxes in the UK cost Paddy Power an incremental €52.3m year-on-year.
"If we adjust the 2015 outcome for these charges, we estimate that underlying earnings growth was actually 42 per cent. By that same measure, in the half year to the end of October, Betfair reported underlying earnings growth of 45 per cent.
"It is clear that both Paddy Power and Betfair enter this merger with excellent underlying momentum."
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