Published on 9th March 2016 by Andrew Mills

The recent introduction of additional gaming taxes had a few people speculating that some companies would have real struggles, but this does not appear to have been the case with Paddy Power.The company, that has recently merged with Betfair to create Paddy Power Betfair, has announced profits across the board.Betfair also had an impressive 2015, especially considering the tax changes, suggesting that the merger may have happened at the best possible time.

Paddy Power Profits

Full year revenue for Paddy Power increased 24% year on year to €1.1 billion. Annual profits were also up by 10% to €180 million.Paddy Power claims that without the introduction of the aforementioned taxes, operating profit would have been up 50%.UK and Irish revenue rose by 15% and 14% respectively. Revenue generated by online business also saw a rise, up by 23%. With that kind of momentum, the merger with Betfair could prove to be perfectly timed.

Betfair Profits

It is claimed that Betfair would have seen their profits rise by 63% had it not been for the tax changes. But as it stands, they still saw a 7% increase in operating profit and a 17% rise in revenue.The merger between these two companies on the back of such an impressive 2016 all around promises to be very profitable for them both. With initial announcements saying the merger would lead to cost savings of up to £50 million, it looks like 2016 may be even more lucrative for Paddy Power Betfair.