Paddy Power's online division drove growth during 2008 fiscal year, with operating profit up 33.8 percent to 42.8 million euros.
Group operating profits came in at 75.7 million euros, of which the online division comprised 57 percent -- up markedly from 44 percent in 2007.
The company, which derives the majority of its income from Ireland, grew active online customers by 24 percent to 180,316 from 145,575 a year ago.
Amounts wagered at the online sportsbook rose 20 percent to 646 million euros, though average stake per bet fell 20 percent to 23.58 euros, diluted by higher numbers of active customers and "more challenging economic circumstances," it said.
The online gaming segment grew revenue by 28 percent to 47.1 million, driven by games and casino. The company has successfully cross-sold those products to its sports punters, with multi-product customers up 21 percent over 2007.
Poker, the company said, experienced a "challenging" year, with income flat against the prior year period, although active customers grew and profitability was maintained.
Paddy Power's Irish retail division -- its largest -- grew amounts staked by just 1 percent to 935.4 million euros, while gross win fell 1 percent to 124.3 million euros. The company cited the large number of shops that have opened there in recent years as a drain on turnover.
Ireland's economy, moreover, swung into a recession in late September, and according to a consumer sentiment index published by KBC Bank and ESRI, Irish sentiment weakened significantly in 2008 against 2007.
Meanwhile, a new tax, which sees the retail betting duty rise from 1 percent to 2 percent this May, has made some analysts leery of the name.
"Paddy’s crown as darling of the sector has certainly slipped, relating principally to
concerns over highly competitive (lower margin) activities in its betting offer, as well
as the negative external impact of punitive Irish retail betting tax (from May 2009,
announced October 2008) and a high percentage of race cancellations," James Hollins, an analyst with Daniel Stewart & Company, said in a January sector note.
Regarding current trading, the company said it is "satisfied" with progress across the first two months of 2009, with non-retail and retail sportsbook amounts staked up 15 percent and down 5 percent, respectively. Non-sportsbook gross win has grown 9 percent, it said.
From amounts staked of 2.1 billion euros, the company generated gross win of 283.7 million euros, up 2 percent over last year.
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.