Merger synergies lead to positive third quarter at Paddy Power Betfair

The FTSE 100 bookmaker said that growth was driven by sports, including a strong conclusion to the Euro 2016 tournament, with sportsbook stakes up 26%, or 14% at constant currency.

Underlying EBITDA rose 53% to £113m and underlying operating profit was up 68% to £95m, with the company’s underlying EBITDA margin increasing from 23% to 28%.

Looking ahead, Paddy Power’s board said the third quarter trading and accelerated synergy delivery would result in higher full year profit guidance, with underlying EBITDA now expected to be between £390m and £405m.

“This was another good quarter for Paddy Power Betfair,” said chief executive Breon Corcoran.

We are continuing to focus on building a stronger combined operation by exploiting the unique assets and capabilities of each legacy business, and on using our scale to better serve our customers.

“Work is underway to combine the best of Betfair and Paddy Power's technology into a multi-brand, multi- channel, multi-jurisdictional platform that will start to unlock the full potential of the group's scale and will lead to increased pace of development and faster roll out of new products.”