Merger costs drops Paddy Power into 16H1 loss

International bookmaker Paddy Power Betfair reported 16H1 results this week, including results of Australian operator Sportsbet.

The gambling giant, created by the merger of Paddy Power and Betfair, said while revenues grew 18 percent to £759 million ($1 billion) in the first half of 2016, the group saw a loss of £47.5 million, as a result of merger costs.

However, chief executive Breon Corcoran remained optimistic about the year ahead, saying the merger will cut the enlarged group’s costs by £65 million, with the full benefits of the reduced costs to be reaped next year.

“The restructuring is now largely complete and the merger synergies are being delivered ahead of schedule,” Corcoran said in a statement. “While our industry remains highly competitive and is exposed to the prevailing economic and regulatory environments, our strong market positions, increased scale and enhanced capabilities position us well for sustainable, profitable growth.”

Paddy Power Betfair’s Australian subsidiary also reported a rise in revenue, up 17 percent year-on-year, but a sharp rise in costs, as well as low win rates, saw year-on-year profit decline 12 percent to £26.1 million.