Paddy Power Shares Slump On Results
Paddy Power shares slump on results
Shares in Paddy Power Betfair have actually fallen by about 5% after the bookie unveiled frustrating first-quarter results.
The business's underlying operating revenue 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 betting taxes and start-up losses in the US likewise took their toll.
The company said it was preparing to return ₤ 350m of cash to investors in the next 12 to 18 months, with a share buyback programme to be initiated shortly.
Paddy Power Betfair opened three brand-new stores in the UK and two in Ireland during the quarter, taking its overall to 631.
'Good progress'
The company said group profits was down 2% at ₤ 408m for the quarter,
Growth in football wagering was offset by "weakness in horseracing, which was adversely affected by the high level of weather-related cancellations".
It anticipates full-year earnings to come in at in between ₤ 470m and ₤ 485m.
"We have made great progress against our strategic concerns," said primary executive Peter Jackson.
"In Europe, the successful completion of our platform combination has led to a significant enhancement to the Paddy Power product.
"In Australia, Sportsbet continues to perform well and is targeting more market share development."
"Weather is a huge consider our market and the terrible start to this year has affected lots of businesses, not just the bookies. It is not unexpected that revenues have slumped, but the genuine test will be through the spring and summer season," said Andy Bell from Bettingodds.com, external.
Paddy Power shares slump on results
Shares in Paddy Power Betfair have actually fallen by about 5% after the bookie unveiled frustrating first-quarter results.
The business's underlying operating revenue 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 betting taxes and start-up losses in the US likewise took their toll.
The company said it was preparing to return ₤ 350m of cash to investors in the next 12 to 18 months, with a share buyback programme to be initiated shortly.
Paddy Power Betfair opened three brand-new stores in the UK and two in Ireland during the quarter, taking its overall to 631.
'Good progress'
The company said group profits was down 2% at ₤ 408m for the quarter,
Growth in football wagering was offset by "weakness in horseracing, which was adversely affected by the high level of weather-related cancellations".
It anticipates full-year earnings to come in at in between ₤ 470m and ₤ 485m.
"We have made great progress against our strategic concerns," said primary executive Peter Jackson.
"In Europe, the successful completion of our platform combination has led to a significant enhancement to the Paddy Power product.
"In Australia, Sportsbet continues to perform well and is targeting more market share development."
"Weather is a huge consider our market and the terrible start to this year has affected lots of businesses, not just the bookies. It is not unexpected that revenues have slumped, but the genuine test will be through the spring and summer season," said Andy Bell from Bettingodds.com, external.