Paddy Power shares slump on outcomes

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

The company's underlying operating earnings fell to ₤ 80m, compared with ₤ 91m for the yohaig code 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 firm stated it was preparing to return ₤ 350m of cash to shareholders in the next 12 to 18 months, with a share buyback programme to be initiated quickly.

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

'Good progress'

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

Growth in football wagering was balanced out by "weak point in horseracing, which was adversely affected by the high level of weather-related cancellations".

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

"We have made good progress against our strategic priorities," stated primary executive Peter Jackson.

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

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

"Weather is a huge aspect in our industry and the terrible start to this promotion code year has affected lots of businesses, not simply the bookmakers. It is not unexpected that profits have dropped, but the genuine test will be through the spring and summertime," said Andy Bell from Bettingodds.com, external.

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