Paddy Powers the Irish Economy
Thing are tough all over, or are they? Unemployment may be 25% in Spain, Greece and over 11% in the rest of Europe, but the online and social gambling industry is hiring at the speed of light.
Online casinos are a rare “green shoot” in a troubled economy.
Paddy Power is adding 610 jobs at its Dublin headquarters, a move that is impressing gaming analysts around the world. Paddy Power was founded in 1998 – the result of a merger between 3 small bookies.
Paddy’s market cap is €2.8 billion with profits of €123 million and has expanded to other markets – doing particularly well in Australia. Today, Paddy Power faces the challenge of its own success.
Like Warren Buffett’s Berkshire Hathaway, how can Paddy keep growing at the same rate? The company is valued at a higher price-earnings ratio than competitor William Hill.
Italy is said to be Paddy Power’s next target, but Italy is a mature market with less growth potential than Australia. A major area of growth is in mobile gaming.
Paddy Power’s recently released Roller Casino app for iPad and iPhone is expected to help grow mobile gambling numbers.
With over 2,700 employees in Ireland, Paddy Power offer a rare look at business success in 2012. Can the super growth continue?