Paddy Power Betfair Reports Positive Q3
Much of its US sports betting success is thanks to the merger between Betfair US and FanDuel. The result has been a 3% increase in US sports betting revenue, all the way up to £377 million.
Growing Product Offerings
The operator has said that it expects its US sports betting EBITDA losses to tally in at around £25 million, but that this was to be expected following extensive marketing and large-scale investment in promotions in New Jersey. When the start-up losses are removed from the equation, the EBITDA is in fact well in the clear, and showing an increase of 6%, when considered on a constant currency basis.
The company has been driven by a desire to improve on its current product offerings and has spared no expense in order to achieve a decent first impression in the US market.
Money Well Spent
According to Peter Jackson, Chief Executive Officer of Paddy Power Betfair, the momentum that has been achieved is for the most part thanks to a renewed commitment towards sound investments and making sure that those investments are executed in the most effective possible way. This has resulted in the overall product having been enhanced, as well as expenses relating to promotions and marketing having been money well spent because the execution was ultimately performed in an effective way.
Despite the absolute value in advertising and promotions, many companies still tend to underestimate the value and necessity of proper execution and of course the channelling of sufficient financial resources towards the end-goal. It’s obvious that this has not been the case with Paddy Power Betfair.
Jackson referred specifically to the US market, saying that this was a market with huge potential for growth, and that the company’s strong position in the country has now added to a largely positive experience. Jackson concluded by saying that overall, the team was well-pleased with the progress that had been made, and that the investments made towards critical operational avenues like promotions and marketing had paid off and had served the company’s long-term strategy.