Paddy Power shares drop on results

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

The company's underlying operating earnings was up to ₤ 80m, compared with ₤ 91m for the very same duration in 2017.

It blamed bad weather condition in March for lower earnings 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 investors in the next 12 to 18 months, with a share buyback programme to be initiated shortly.

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

'Good development'

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

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

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

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

"In Europe, the successful conclusion of our platform integration has actually led to a meaningful enhancement to the Paddy Power item.

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

"Weather is a huge aspect in our market and the horrible start to this promotion code year has actually affected numerous companies, not just the bookmakers. It is not unexpected that profits have actually plunged, but the real test will be through the spring and summer season," stated Andy Bell from Bettingodds.com, external.

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