Paddy Power Creates Partnership with PMU
November 18, 2009 by Igor
Filed under All Casino news, Sport betting news
It looks like France really is preparing for the coming 2010 when it opens its doors to online sports betting. Right now, it has created a partnership with one of the world’s leading online gambling groups, and this is Paddy Power, owned and managed by a company based in Ireland.
The Partnership
Paddy Power is considered as Europe’s biggest betting group, earning 9.3 billion Euros in revenue just last year, 2008, and today, it has signed an agreement to become partners with Pari Mutuel Urbain or PMU in its venture into the online sports betting industry. According to Reuters, this partnership between PMU and Paddy Power is good for five years wherein Paddy Power is going to provide PMU with its betting technology as well as the pricing.
With this announcement, Paddy Power’s stock value has increased to about 5.6%, proof that many know just how lucrative this new venture is, and with Paddy Power in partnership with PMU, it seems like these two major players are going to meet the expectations made by its target market.
Building Momentum
As stated above, the stock value of Paddy Power has increased when the company signed a deal with PMU. It is being expected that Paddy Power will see an increase of three to five million Euros in profits by the year 2012, according to Jack Massey, the Financial Director of Paddy Power. Massey also went on to add that they are more than confident of the strength of their partnership with PMU because of the quality of their partner, which, he said, will be good for them as PMU is a known brand in France, being the largest horse racing operator in the country.
But this is just the beginning, of course, as this momentum is expected to increase as the years go by and the online sports betting industry of France gains more popularity. With this, too, comes more business deals, more business partnerships, and more opportunities to expand both the revenues of Paddy Power and PMU. In fact, Patrick Kennedy, Paddy Power’s Chief Executive Officer, remarked that this deal is bound to be a very impressive start for the company’s B2B division, which is still relatively new.
On the other hand, Philippe Germond, PMU’s Chief Executive Officer, also stated in an interview that this partnership between them and Paddy Power has allowed them to not only offer online sports betting but also to maintain their own brand name, aside from the fact that Paddy Power paved their way and will prepare them for the imminent launching of the online sports betting market in France this 2010.