Paddy Power shares drop on results

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

The company's underlying operating revenue fell to ₤ 80m, compared with ₤ 91m for the same duration in 2017.

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

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

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

Paddy Power Betfair opened 3 brand-new shops in the UK and 2 in Ireland during the quarter, taking its overall to 631.

'Good progress'

The business said group revenue was down 2% at ₤ 408m for the quarter,

Growth in football betting was balanced out by "weak point in horseracing, which was negatively impacted by the high level of weather-related cancellations".

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

"We have made great progress against our tactical top priorities," stated chief executive Peter Jackson.

"In Europe, the effective completion of our platform combination has resulted in a significant improvement to the yohaig code Paddy Power product.

"In Australia, Sportsbet continues to perform well and is targeting additional market share growth."

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

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