Paddy Power plc 3

Topics: Financial statements, Auditing, Audit Pages: 14 (3075 words) Published: April 22, 2015

Table Of Contents
Background Research2
History and Present situation3
Paddy Powers Products4
Key management for current year6

Areas of Emphasis8
Logistical Issues10
Risk of Fraud11

Background Research
Paddy power plc is an international betting and gaming group. It is Ireland’s largest bookmaker. Paddy Power is publicly quoted company listed on the Irish stock exchange and has operations in Ireland, the UK and Australia. Paddy Power competes in a very competitive market and offers a wide range of products to their customers. These include online betting, casino, poker, bingo, online games, telephone betting, retail stores, Sportsbet in Australia and Business to business offerings such as risk management. One must look at the external environment at first. The Gambling industry in Ireland was flooded with operators in the boom times. Land based gambling in 2007 was valued at €1.7 billion. ( accessed on 29/11/2011). A tax levy of 1% has perhaps had a factor on the profits of some companies but one sector of gambling that cannot be ignored is the online element to it. Huge growth levels have been witnessed in this sector. The employment levels and operating profits of the industry have remained stable in general. The market however is very open to volatile changes such as the volcanic ash cloud in 2010 that resulted in the cancellation of many sporting events. The future of the industry is not definite. 2012 will see the introduction of more legislation. This change in regulations should ideally reflect societal factors. It is hoped that stricter laws for online gambling will be introduced as well as measures to protect young people. Licensing laws will also change where the minister will only administer a licence to those “who satisfies the Minister in relation to his personal suitability, financial resources, tax compliance, previous record as a licence holder (whether in Ireland or elsewhere) and criminal history (if any).” ( accessed 29/11/2011). One thing that bookmakers and online gambling providers can be assured of is that no licence will be granted to large casinos or fixed odd betting terminals. Unfortunately, for many bookmakers, they could see a rise in betting taxes in the near future as the government grasps at the many money making schemes that is proposed to them. The value of online betting in 2020 is expected to be €150 billion. If Ireland just captures 5% of this it means that Irelands share would be worth €7.5 billion in that same year. ( accessed 29/11/2011).

History and present situation
Paddy Power was founded in 1988 and their aim has always being to make betting a form of fun and entertainment. There have been many developments since the late eighties including innovations such as doubling the odds, and of course since the millennium the launch of At present Paddy Power have 48.715 million shares in issue. Their current share price is €40.50 ( accessed 30/11/2011 at 20.25). Pre-tax profits as at year end 31 December 2010 were €104.2 million. Three quarters of all revenues came from their online operations. (pg 13 and pg 6 respectively annual report 2010) .In the first six months of 2011 the company’s profit before tax figure was €58.8 million. The interim management statement at the 16th of November 2011 stated that the online division of the business has excelled worth amounts staked up 31%. The Australian online division has seen and increase to 23% as opposed to 7% for the first half of the year. The amount of people using the service via mobile has increased to 32% in October of this year. Net cash at the 14th November 2011 was a figure of €96 million. (interim management statement as at 16th November 2011). 2010 saw the end of Paddy Power Trader. This was a commission free alternative to trading share...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Paddy Power Essay
  • E-Business Paddy Power Essay
  • Paddy Power Plc Essay
  • Essay about Paddy Power
  • The Three Power Shifts of Paddy Ashdown Essay
  • 3 Phase Power Supply Essay
  • Essay on PLC
  • Paddy Power Case Study Essay

Become a StudyMode Member

Sign Up - It's Free