Paddy Power Shares Slump On Results
Paddy Power shares plunge on results
Shares in Paddy Power Betfair have fallen by about 5% after the bookmaker revealed disappointing first-quarter results.
The company's underlying operating profit fell to ₤ 80m, compared to ₤ 91m for the very same period in 2017.
It blamed bad weather condition in March for lower profits 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 cash to shareholders in the next 12 to 18 months, with a share buyback program to be initiated quickly.
Paddy Power Betfair opened 3 brand-new stores in the UK and two in Ireland throughout the quarter, taking its total to 631.
'Good progress'
The business said group earnings was down 2% at ₤ 408m for the quarter,
Growth in football betting was balanced out by "weak point in horseracing, which was negatively affected by the high level of weather-related cancellations".
It expects full-year revenues to come in at between ₤ 470m and ₤ 485m.
"We have actually made good progress against our strategic priorities," stated primary executive Peter Jackson.
"In Europe, the effective completion of our platform integration has actually resulted in a significant enhancement to the Paddy Power product.
"In Australia, Sportsbet continues to carry out well and is targeting more market share development."
"Weather is a big consider our industry and the dreadful start to this year has affected lots of businesses, not simply the bookies. It is not surprising that revenues have actually dropped, but the genuine test will be through the spring and summer," said Andy Bell from Bettingodds.com, external.
Paddy Power shares plunge on results
Shares in Paddy Power Betfair have fallen by about 5% after the bookmaker revealed disappointing first-quarter results.
The company's underlying operating profit fell to ₤ 80m, compared to ₤ 91m for the very same period in 2017.
It blamed bad weather condition in March for lower profits 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 cash to shareholders in the next 12 to 18 months, with a share buyback program to be initiated quickly.
Paddy Power Betfair opened 3 brand-new stores in the UK and two in Ireland throughout the quarter, taking its total to 631.
'Good progress'
The business said group earnings was down 2% at ₤ 408m for the quarter,
Growth in football betting was balanced out by "weak point in horseracing, which was negatively affected by the high level of weather-related cancellations".
It expects full-year revenues to come in at between ₤ 470m and ₤ 485m.
"We have actually made good progress against our strategic priorities," stated primary executive Peter Jackson.
"In Europe, the effective completion of our platform integration has actually resulted in a significant enhancement to the Paddy Power product.
"In Australia, Sportsbet continues to carry out well and is targeting more market share development."
"Weather is a big consider our industry and the dreadful start to this year has affected lots of businesses, not simply the bookies. It is not surprising that revenues have actually dropped, but the genuine test will be through the spring and summer," said Andy Bell from Bettingodds.com, external.