Paddy Power's online gamble paying off

SALES at Irish bookie Paddy Power have broken the €1bn level for the first time in 2004 as punters turn increasingly to the firm's emerging internet service to gamble.

'While all strands of the business performed well, I am particularly pleased that the online business has come of age,' chief executive John O'Reilly said.

Paddy Power has moved from its traditional business as a small-stake bookmaker into non-bookmaking activities through the online casino, fixed odds betting games and peer-to-peer games.

It has also introduced fixed odds betting terminals in its UK shops, which have seen a big expansion to 31 from 12 at the end of 2003. It expects to have between 45 and 50 outlets by the end of this year.

But the company's online operations are its fastest-moving division with Paddy Power adding several new products. These include the Paddy Power Casino, launched in the UK early last year and smaller betting game products.

Its net profit rose 56% to €27.5m (£18.4m) on turnover of €1.16bn compared with €913.6m this time last year.