Paddy Power shares plunge on results

Shares in Paddy Power Betfair have fallen by about 5% after the bookmaker unveiled frustrating first-quarter results.

The business's underlying operating earnings fell to ₤ 80m, compared to ₤ 91m for the exact same duration in 2017.

It blamed bad weather in March for lower revenues from horseracing after 14% of UK and Irish races were cancelled.

New wagering taxes and start-up losses in the US likewise took their toll.

The company said it was preparing to return ₤ 350m of money to shareholders in the next 12 to 18 months, with a share buyback programme to be started soon.

Paddy Power Betfair opened three new stores in the UK and 2 in Ireland throughout the quarter, taking its total to 631.

'Good development'

The company stated group profits was down 2% at ₤ 408m for the quarter,

Growth in football wagering was offset by "weakness in horseracing, which was negatively impacted by the yohaig code high level of weather-related cancellations".

It expects full-year earnings to come in at in between ₤ 470m and ₤ 485m.

"We have made excellent progress against our tactical priorities," stated primary executive Peter Jackson.

"In Europe, the successful conclusion of our platform integration has actually led to a significant enhancement to the Paddy Power item.

"In Australia, Sportsbet continues to carry out well and is targeting further market share growth."

"Weather is a big consider our market and the awful start to this promotion code year has affected lots of companies, not simply the bookies. It is not surprising that profits have actually dropped, but the real test will be through the spring and summertime," stated Andy Bell from Bettingodds.com, external.

Betting firm 'stopped working problem bettors'

2 May 2018

Bookies look for gambling machine reprieve

29 April 2018