Paddy Power Shares Slump On Results

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

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

It blamed bad weather condition 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 also 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 started shortly.

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

'Good development'

The company stated group income was down 2% at ₤ 408m for the quarter,

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

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

"We have made great progress against our tactical concerns," stated president Peter Jackson.

"In Europe, the effective conclusion of our platform integration 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 factor in our market and the terrible start to this promotion code year has affected numerous businesses, not simply the bookies. It is not unexpected that revenues have plunged, but the real test will be through the spring and summertime," stated Andy Bell from Bettingodds.com, external.