Paddy Power Rides 1Q Profits to Major Acquisition

Ireland’s top sportsbook, Paddy Power plc has followed up its announcement of an unexpected windfall in 2008 first quarter profits with a £19 million acquisition of McGranaghan Racing, a leading independent bookmaker in the Greater Belfast area. This move will augment Paddy Power’s already substantial presence in both London and Ireland with eight additional betting offices.

Paddy Power CEO, Patrick Kennedy on the Irish conglomerate’s plans for McGranaghan and the position that the newly acquired division will fill:

McGranaghan’s has a similar business model to our own, employing a very competitive offering to drive very high shop turnover and profitability. Acquisition is the necessary route into this interesting market and McGranaghan’s is an ideal entry point for Paddy Power.
 
The estate has an attractive mix of different locations and like Paddy Power is a punter focused business which promotes a very competitive and attractive offering that will drive both footfall in our shops and increased profitability throughout our company.
 
Over the past decade, punters in Northern Ireland have already experienced significant exposure to the unique brand offering of Paddy Power through our phone and online betting services. This opportunity to ground and complement our brand with a bricks and mortar presence is very exciting and we look forward to bringing our unbeatable range of products and service throughout Greater Belfast.

Meanwhile, on the London Stock Exchange, shares of Paddy Power plc (LSE:PAP) rose to a record close of €23.05 on Wednesday May 28.