Paddy Power CEO Patrick Kennedy prefers to accentuate the positive concerning the firm’s 2005 results. While revenues from Paddy Power’s traditional bricks and mortar betting outlets have fallen progressively throughout the year, its online operations have proved the most successful aspect of the Irish bookmaker’s business.

Last year’s online poker launch helped to shift the company’s focus from its traditional forms of betting. Online customers at Paddy Power subsequently increased from 46,703 on the previous year to 73,661. Membership for the company’s casino gaming platform increased from 2,338 to 11, 227. While the company’s total pre-tax profit was down 2.5 percent on 2004, its online operating profits increased by 92 percent for 21 million euros.

Kennedy cited structural changes in the firm’s home market as responsible for Paddy Power’s disappointing total profit, but stressed the growth of its online business in 2005. “The growth in the past few years in our non-retail channel has been truly impressive. In addition to our sports book offering through both telephone and internet channels, we have successfully introduced casino products, gaming products and poker.”

Kennedy also stated expansion is currently a tempting option for the Irish bookmaker, but controversial legality issues need to be considered with caution in mind. “There is an obvious temptation to take a brand such as ours to places such as New York and Chicago. But we need to manage our growth and the legal situation there remains a grey area,” Kennedy said.

Paddy Power also took the opportunity in announcing its results to advise that its new financial director will take up his tenure in April 2006. Jack Massey, formerly of technology investment firm ITG Europe, brings a wealth of experience in financial operations to the company.

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