Paddy Power shares slump on results

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

The business's underlying operating earnings was up to ₤ 80m, compared with ₤ 91m for the 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 stated it was preparing to return ₤ 350m of money to investors in the next 12 to 18 months, with a share buyback programme to be initiated quickly.

Paddy Power Betfair opened 3 new shops 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 balanced out by "weak point in horseracing, which was negatively affected by the yohaig code high level of weather-related cancellations".

It anticipates full-year profits to come in at between ₤ 470m and ₤ 485m.

"We have made excellent development against our strategic priorities," stated primary executive Peter Jackson.

"In Europe, the effective completion of our platform integration has actually resulted in a meaningful enhancement to the Paddy Power product.

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

"Weather is a big consider our industry and the dreadful start to this promotion code year has affected numerous services, not just the bookies. It is not surprising that profits have actually slumped, however the real test will be through the spring and summer season," said Andy Bell from Bettingodds.com, external.

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