Widespread Irish bookies, PaddyPower, has demonstrated once again why sport-based betting online remains the strongest gambling outlet within the United Kingdom. Having recently unveiled its figures in its H2 report, the powerhouse bookies belies an “underlying growth” across the business with a total 9% total net revenue year-on-year. But will sports betting continue this growth or has it reached its peak?
If business reports are anything to go by then they can be extremely telling on how well players receive different aspects of the online gambling community at large. In recent years, Paddy Power has seen a 6% yearly increase on constant currency which would tell anyone that sports betting is on the rise, especially when that figure rose to 9% after the Fifa World Cup ended in July 2014.
Indeed, Sportsbook had risen from 5% to 7% in terms of nominal and and constant currency while those booked via Paddy Power’s sportsbook increased 21% on a nominal basis and 19% constant currency. However, total revenue of the online of the bookmaker’s online business came in at a loss at 3% and 9% while nominal figures decreased from 21% to a mere 19% in terms of current currency.
And that isn’t the only tale of woe. Total net revenue from online business arrived at a loss of 3% and 9% for nominal and constant currency whilst nominal sportsbook net revenue dropped to 12%, with constant currency also down by 17%.
So what does this mean? PaddyPower claims the losses are due to the impact of unfavourable sports. What sorts of unfavourable sports, they failed to disclose but we can only guess that there were not so favourable odds out on a few of their featured virtual sports games and has led to a loss of custom and therefore loss of money.
But does this spell the end of online sports betting? Absolutely not! PaddyPower predicts that its full year gross profit will be “mid to high digital percentage increase above 2014”. The proposed merger with Betfair might also increase business and therefore make the industry more prosperous. For the time being, though, sports betting online is steadily growing stronger and will continue to do so for the foreseeable future.