Paddy Power Betfair eyes jump in merger savings

Costs arising from the £7 billion merger of Paddy Power and Betfair pushed the combined group into a loss during the first six months of the year, but savings from the tie-up will be larger and come faster than originally expected.
By The Newsroom
Published 25th Aug 2016, 11:27 BST
Updated 25th Aug 2016, 12:29 BST

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Paddy Power and Betfair joined forces in February: PA WirePaddy Power and Betfair joined forces in February: PA Wire
Paddy Power and Betfair joined forces in February: PA Wire

Releasing its maiden interim results following February’s deal, Paddy Power Betfair yesterday reported double-digit growth across its four core divisions, and an increase in underlying earnings. However, £195 million of merger costs saw the group slide £49.3m into the red at the bottom line.

The FTSE 100 firm said there will be £65m of cost savings from the merger in 2017, up from an original estimate of £50m and a year earlier than previously forecast. Chief executive Breon Corcoran said the company “hit the ground running” upon completion of the deal, with 650 of its 7,200 staff departing in the immediate wake of the merger.

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