16th May 2006 07:00
Paddy Power plc16 May 2006 STRICTLY EMBARGOED UNTIL 7.00 AM ON TUESDAY 16TH May 2006 Paddy Power plc AGM Trading Update The Chairman of Paddy Power plc, Fintan Drury, will make the following statementat the Company's Annual General Meeting to be held at 11am this morning (May16th, 2006). "For the 19 weeks to 9 May 2006, turnover and gross win growth has been strongacross all channels. Group turnover has increased by approximately 25% in comparison to the sameperiod last year. Turnover has increased by 19% in the retail channel, by 18%in the telephone channel and by 44% in the online sportsbook, excluding gaming.Gaming revenues within the online channel have seen continued strong growth andare markedly up on 2005, given, in particular, the addition of poker revenue. Ona like-for-like comparison, gaming revenues are 27% ahead of the levels achievedin the last 19 weeks of 2005. The overall gross win percentage year-to-date is consistent with the Group'sguidance, whilst modestly below the weighted average mid-point of the guidedranges. Operating costs have continued to grow in line with our expectations, as aresult of both turnover growth and continued upfront investment for futuregrowth. In the first 19 weeks of the year, operating costs were approximatelyone third higher than in the equivalent period of 2005. The major drivers of this increase included: - growth in the number of retail outlets (15% increase versus May 2005)- continued upgrading of the retail estate (including EPOS)- volume growth in the online and telephone channels- launch of new businesses and expansion of businesses recently launched in the online channel- volume driven promotional and marketing spend Product and geographical expansion in the online channel continues with thelaunch of 'reverse' auctions in January and a German language online sportsbookin April. We also plan to launch an online bingo business during the summer. The expansion of the Irish and United Kingdom retail estates has continued inline with plan with three and four new outlets opened respectively. This takesthe combined total to 202 outlets; 153 within Ireland and 49 within the UnitedKingdom. The opening of new outlets will continue with a target of six to tennew outlets in Ireland and up to 15 new openings in the United Kingdom in 2006. The Group remains confident about its growth prospects for the year. Theoutcome for the year should be in line with consensus market forecasts assumingcontinued turnover growth in line with our expectations and on the criticalassumption that the overall gross win percentage is consistent with themid-points of the guided ranges for the remainder of the year." ENDS Issued on behalf of Paddy Power plc by Drury Communications Oonagh Daly / Sarah Ryan Trevor Phillips Drury Communications Holborn Public Relations, London Tel: +353 1 260 5000 Tel: +44 (0)207 929 55 99 Mobile: Sarah Ryan +353 87 6767 452 Oonagh Daly +353 87 855 4406 For reference, contact: Patrick Kennedy, Chief Executive Officer Jack Massey, Finance Director, Paddy Power plc Tel: +353 1 4045912 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Flutter Entertainment