Betfair Casino revenues up 29% as DRAFT acquisition hurts PPB US profits
Group US revenues reach £109m with positive EBITDA despite start-up losses from the Exchange and DRAFT
Paddy Power Betfair has reported a 15%cc rise in revenues from its US business, comprised of TVG, Draft, and the Betfair Casino and Exchange in New Jersey.
2017 revenues hit to £109m comprised of 13% growth in sports revenue to £94m and 29% growth in gaming revenues at the Betfair Casino to $16m.
The Betfair casino has approximately 12% of New Jersey market share, according to PPB.
Revenue growth at TVG was driven by continued investment in product and marketing, including the introduction of money-back specials to the US horseracing market and the free-to-play TVG Super 8 Contest.
The whole US division contributed £4m of EBITDA in 2017, down from £12m last year, as profit growth at TVG and the Betfair Casino was offset by start-up losses incurred in DRAFT and the Betfair Exchange.
PPB said the latter two business lost around £15m although said DRAFT was growing and acquiring customers that would prove useful should PASPA be repealed.
The firm said in a statement: “While our existing businesses are attractive in their own right, they also position the Group well if positive regulatory change results in the market opening for sports betting. In light of this, we are considering the appropriate way that we would participate in the market.”
The wider PPB group saw revenues climb 13% to £1.75bn.