Paddy Power has landed a major contract with French betting firm PMU to provide risk and pricing for PMU’s new online sports-betting business for a five-year period from 2010, which the Irish firm says will see it create 250 smart jobs at its Tallaght headquarters over the next three years.
As PMU lacks expertise in online sport betting, it has hired in the skills of Paddy Power in this area as the company expands into the French online sports-betting market, which is scheduled to open up in the first half of next year.
While the value of the contract is not known, it is likely to be of great value to Paddy Power, offering access to a new and untapped betting market.
Smart job creation
The partnership, which will be officially launched by An Taoiseach Brian Cowen TD later today, is part of Paddy Power’s ongoing international expansion, which the company says will generate an additional 50 Smart-Economy jobs in technology, risk management and quantitative analysis in its Tallaght headquarters by the summer of 2010.
Paddy Power also says it intends to create a further 200 high-end jobs in Tallaght over the next three years as it continues to exploit its risk management and e-commerce expertise.
Smart Economy not a pipedream
“Today’s announcement shows that the Smart Economy is not a pipedream, it is happening all around us,” said Cowen.
“Paddy Power is a prime example of a company with a talent for innovation that keeps on searching for new opportunities.
“The decision of a world-class organisation like PMU to team up with Paddy Power is testament to Paddy Power’s own world-class expertise in e-commerce, product development and risk management.
“I hope to see Paddy Power continue to create many more smart economy jobs for Tallaght and for this country,” Cowen added.
A long-term relationship
This deal with PMU, which is a long-term relationship with a high-quality partner, is the ideal start for our new business-to-business operation,” said Patrick Kennedy, chief executive, Paddy Power.
“We continue to look for other quality opportunities in international markets, capitalising on our investment in people, expertise and particularly in our proprietary pricing and risk-management technology.”
“This partnership is going to enable PMU to offer sporting bets online under its own brand and retain direct management of its client database,” said Philippe Germond, chairman and CEO of PMU.
“Paddy Power will provide us with its expertise in sports betting. Through this partnership, PMU is given the means to be ready for the opening of the online betting market in France next year.”
PMU is the biggest betting organisation in Europe with €9.3 billion of turnover in 2008 generated through 10,000 retail outlets, as well as its remote sales channels.
Paddy Power generates in excess of 50pc of its profitability from outside Ireland and is the largest online corporate bookmaker in Australia since its acquisition of 51pc of Sportsbet in May this year. Paddy Power is also one of the largest online bookmakers in the UK.
Paddy Power employs 640 staff at its Tallaght headquarters in quantitative research, technology, risk management, marketing, e-commerce, operations and finance.
Paddy Power confident of meeting 2009 EPS forecast
Meanwhile, in an interim management statement released this morning, Paddy Power has said it is confident of meeting the current market consensus for 2009 diluted earnings per share of about 113 cent, subject of course to the impact of sporting results over the remainder of the year.
Turnover grew strongly in the 19-week period from 1 July to 10 November, the group said, assisted by greater customer winnings in 2009, the high level of race cancellations in August and September 2008 and continued market-share growth.
While overall sporting results in the period were adverse, all channels experienced gross win percentages above their expected ranges since the start of October, Paddy Power said.
The group also reported strong growth in its UK and Irish sportsbooks during the period by 24pc and 11pc respectively.
Photo: Patrick Kennedy, chief executive, Paddy Power.
Article courtesy of businessandleadership.com