UK-listed online gambling giant Paddy Power Betfair (PPB) reported healthy revenue gains in 2016 but merger costs took a big bite out of profits.

Figures released Tuesday show PPB’s group revenue hitting £1.55b in 2016, 18% higher than the combined sum the two former rivals generated as separate entities in 2015.

Earnings were up more than one-third to £400m and operating profit was up 44% to £330m on a pro forma basis, although statutory profit tumbled from £125m to just £15m due in part to £66m in costs associated with the major restructuring triggered by the 2015 merger of Paddy Power and Betfair.

Sticking with the pro forma numbers, online sportsbook handle rose 16% in constant currency, while sports revenue gained 10% to £609m and online gaming rose 12% to £245m. Online earnings were up 28% to £289m as operating costs grew at a slower rate than revenue.