Paddy Power Betfair profit soars more than two-thirds on strong Euro 2016 finish

UK-listed gambling operator Paddy Power Betfair saw Q3 revenue rise by one-quarter thanks to a strong finish to the Euro 2016 football tournament.

A trading update released Friday showed PPB’s revenue rising 25% year-on-year to £404m in the three months ending September 30, although the results got a significant boost (£28m) via the weakness of the English pound. In constant currency terms, revenue was up a more modest but still impressive 15%.

Regardless, underlying earnings jumped 53% to £113m and profit soared more than two-thirds to £95m as margins rose five points to 28%. The company confidently boosted its full-year earnings guidance to a range between £390m and £405m.

Sportsbook stakes jumped 26% to £2.41b while sports revenue rose 27% to £316m thanks to hold improving 0.4 points to 9.4%. The Q3 portion of Euro 2016 contributed revenue of £16m, bringing the tournament’s total revenue haul to £38m. Gaming revenue was up 16% to £88m.