Bookmaker Paddy Power racked up more than $65 million in losses at the end of June as the gambling company shelled £200 million ($264.41 million) to cover the cost of its merger with Betfair.

Reporting on its interim results, the combined group said it lost £49.3 million ($65.18 million) in the first six months of 2016 compared with the £106 million ($140.14 million) profit it posted in the same period last year on the back of £195 million ($257.8 million) in merger expenses.

The loss came despite the 18 percent spike in revenues at the betting company to £759 million ($1.003 billion) from £642 million ($848.76 million) the previous year. Online revenues increased 20% to £440 million ($581.7 million), courtesy of a 21% and 20% jump in sportsbook and gaming revenues respectively.

Australia-facing Sportsbet also posted a 17 percent year-on-year increase in revenues, although the company’s adverse sports results led to a 10% decrease in underlying EBITDA.