Aussie Market Proves to be a Successful Investment for Sports Betting Companies
The world is going through much right now, amidst the confusion from the Brexit, and Donald Trump’s victory in the USA, it seems that the Aussie gambling market is not phased. This is because it is proving to be quite the spot for international betting companies. Recently, Paddy Power Betfair, which is the owner of Sportsbet Australia, has released the 4th quarter trading results in the UK. The results showed “user-friendly” results in sports and politics which amounted up to $66 million.
Surprising Customer Friendly Results for 2016
Paddy Power Betfair stated that it all started with the really surprising outcome of the US elections. This cost the gambling company more than 5 million English pounds. This also concluded with their European sports books losing a lot of money on the football wagers during the month of December. Despite the customer friendly results that it announced, and that the quarterly revenue witnessed a decrease of 3%; the company expects the profits of last year to be in line with its guidance, which is around £400 million. This is mainly as a result of the great performance of its Australian company, Sportsbet.
The amazing Performance of the Australian Market
During the 4th quarter, the Australian stakes witnessed a growth of 25 percent, and a revenue growth of 18 percent. This announcement by Paddy Power Betfair came a few days after another big international company; Ladbrokes Coral Group made a similar testament that pictured a similar picture for the investors. It stated that the full year profit of the company is going to reach £280 million, which was in line with the market expectations of the company.
Although the company showed the poor sports betting results for the company in Britain, it still witnessed a 17% growth in revenue for the Ladbrokes business; when compared to the December results of last year. It also posted a 13% growth for its Cora.co.uk Company. Of course, just like the Paddy Power Betfair group, the Aussie arm of the company has put those results in shame. As the Aussie Ladbrokes revenue was 45% ahead of its results of last year, as the stakes witnessed an increase of 57%.
Jim Mullen, the Chief Executive stated that the gods of sports didn’t look so favorably upon them in that period, but they are still pleased that the business managed to pull through and perform well. He stated that they are also pleased that the businesses will be able to reach the full year numbers.
All of this shows that the Australian sports betting market is certainly performing well, as all of the International companies that offer services there are posting great results.