Paddy Power’s Aussie site, online gaming growth offset poor sports bet results

Irish betting operator Paddy Power is crediting a stellar performance by its Australian division for pulling its butt out of the fire.

In an interim management statement issued on Tuesday, the Paddsters said trading from July 1 to Nov. 15 had been in line with expectations, with group revenue up 9% (up 5% on a constant currency basis).

The gain came despite unfavorable sports results and the previous year’s comparable period enjoying a boost from the second half of the FIFA World Cup. Despite these headwinds, the company assured investors that there will be a Christmas, as it still expects full year profit to show a “mid to high single digit” percentage gain over 2014.

Excluding Australian operations, online sports betting stakes rose 16% but revenue fell 12% due to those aforementioned dodgy results. This was partially offset by a 13% gain in gaming/B2B revenue, but overall online revenue still fell 3% year-on-year. All is not lost, as the company says its new in-house designed native iOS app has boosted stakes by 25% in its first two weeks, and its new Android and proprietary HTML5 web apps will debut in December.