Paddy Power Give Back Shareholders €392 million
Anyone claiming that gambling companies are in a difficult phase will have to ask themselves how Irish Gambling company Paddy Power has succeeded to more than double their annual profits since 2009.
Paddy Power announced they will be giving €392 million back to shareholders following a record year of growth. Shareholders will receive 8 euros a share which is in an addition to the 13 percent increase of full year dividends. Paddy Power could not find any worthwhile acquisitions so giving back money to shareholders is in line with their organic strategy according to Chief executive Andy McCue.
McCue has a lot to be chuffed with since he took over Paddy Power in January as the share price is at a record high of 72.9 euros.He said,” Giving back money to shareholders and taking on very modest debt doesn’t mean we’ve no flexibility. We could gear up to three times, we’re only gearing up to between zero and one times and that debt will pay down very quickly if we want it to.”
Paddy Powers operating profits last year exceeded analyst’s forecasts and reached €163.8 million last year. Like William Hill the Soccer World Cup gave them a major boost which is continue in 2015 with sportsbook already up by 18 percent online and 8 percent year-on-year in shops.