Last week, the Ireland-based bookmaker Paddy Power Betfair that it is to face major challenges over the upcoming months. The company needs to face increasing pressure from local gambling operators, to make an appointment at the position of Chief Financial Officer and needs to become more focused on drawing benefit from online operations.
On top of everything, the Irish bookmaker needs to make certain decisions when it comes to its retail network.
Now, the company’s Chief Executive Officer called for the crackdown on retail shops to be postponed.
As reported by Casino Guardian, Paddy Power Betfair revealed that its 2017 full-year revenue registered a 13% increase to £1,745 million. An 18% increase was registered in the operators’ EBITDA (earnings before interest, taxes, depreciation and amortization), with the latter reaching £473 million.
At the time when the gambling operator published its annual report, it also revealed that no betting shop closures due to legislative and regulatory changes were expected for the time being, hinting of the upcoming crackdown on UK fixed-odds betting terminals (FOBTs). For some time now, the Government has been considering to reduce the maximum stake allowed on the machines as a measure to tackle problem gambling and gambling-related harm.
In its annual results report published a few days ago, Paddy Power Betfair explained that its retail outlets generated larger profit and performed well thanks to sports betting options. The operator share that its retail shops are mainly situated in locations locations with high rivalry and reminded that the company had been always aimed at generating profit from shop closures of the brand’s competitors as well as from retail shops acquisitions. The bookmaker further pledged to remain focused on already existing betting shops acquisitions and new outlets’ openings.
Paddy Power Betfair to Focus on Digital Growth
At the time when the Irish bookmaker unveiled its results for the full-year 2017, its Chief Executive Officer Peter Jackson confessed that the long-term projections are not very favourable for retail betting outlets. Still, Mr. Jackson shared his hopes that the shops would remain as the “important social hubs” that they are for some time.
As far as future betting outlets closures are concerned, Paddy Power Betfair’s CEO said that was an issue of particular interest considering the ongoing fixed-odds betting machines review and the expected crackdown and the constantly increasing interest towards online gambling operations.
Mr. Jackson shared that a lot of changes were expected to happen in the industry, but also explained that the customers of Paddy Power liked the chance to socialise in the brand’s betting shops and expressed his hope that the trend would continue in the future.
Apart from the pending crackdown on fixed-odds betting terminals in the UK, Paddy Power Betfair also explained that it was also facing the possibility of 15% point-of-consumption tax to be imposed on its Australian operations.
CEO Jackson revealed that the sports results have been favourable to the operator in 2017, but he outlined the future of the company, saying that the rise of online operations was more important than everything else. So, after the company managed to complete the integration of the Betfair’s European platform with the Paddy Power brand, the bookmaker could now spend more time to develop online gaming products.