The Growth of Paddy Power

Irish online bookmaker Paddy Power has reported a 4% increase in profits in 2008 to a total of 79 million euros.

The bookmaker benefited from a 34% jump in betting profits to 42.8 million euros, accounting for more than 70% of the company's profits in the second half of last year.

However, the news wasn't as good for the company's land-based betting shops. It said the number of betting shops it has in the Republic of Ireland, currently at 191, would decline in the coming years as the financial crisis takes its toll. The company plans to expand in the United Kingdom, where it hopes to have 150 shops by 2011.

Meanwhile, the company has benefited from the global financial crisis in an unexpected way, taking advantage of the cheapest advertising rates in decades to launch its first television advertising campaign.

The first of a series of TV ads, created by advertising agency Karmarama, was launched during the weekend's Carling Cup final between Manchester United and Tottenham, which was broadcast on Sky Sports.

The ad featured former England footballer Carlton Palmer sharing a bubble bath with a punter. Palmer was chosen for the ad after winning a poll asking the public which footballer they would most like to see in a bubble bath.

Later ads will feature former jockey Richard Dunwoody and former Liverpool and Zimbabwe goalkeeper Bruce Grobelaar.