Paddy Power Shares Slump On Results
Paddy Power shares drop on outcomes
Shares in Paddy Power Betfair have fallen by about 5% after the bookie revealed disappointing first-quarter results.
The business's underlying operating profit was up to ₤ 80m, compared with ₤ 91m for the exact same duration in 2017.
It blamed bad weather condition in March for lower incomes 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 started shortly.
Paddy Power Betfair opened three new shops in the UK and 2 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 betting was balanced out by "weak point in horseracing, which was adversely impacted by the high level of weather-related cancellations".
It anticipates full-year earnings to come in at between ₤ 470m and ₤ 485m.
"We have made excellent development against our strategic priorities," said chief executive Peter Jackson.
"In Europe, the successful completion of our platform combination has resulted in a significant improvement to the Paddy Power item.
"In Australia, Sportsbet continues to carry out well and is targeting further market share growth."
"Weather is a huge consider our market and the terrible start to this year has actually impacted many services, not just the bookmakers. It is not unexpected that earnings have actually plunged, but the real test will be through the spring and summer season," stated Andy Bell from Bettingodds.com, external.
Paddy Power shares drop on outcomes
Shares in Paddy Power Betfair have fallen by about 5% after the bookie revealed disappointing first-quarter results.
The business's underlying operating profit was up to ₤ 80m, compared with ₤ 91m for the exact same duration in 2017.
It blamed bad weather condition in March for lower incomes 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 started shortly.
Paddy Power Betfair opened three new shops in the UK and 2 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 betting was balanced out by "weak point in horseracing, which was adversely impacted by the high level of weather-related cancellations".
It anticipates full-year earnings to come in at between ₤ 470m and ₤ 485m.
"We have made excellent development against our strategic priorities," said chief executive Peter Jackson.
"In Europe, the successful completion of our platform combination has resulted in a significant improvement to the Paddy Power item.
"In Australia, Sportsbet continues to carry out well and is targeting further market share growth."
"Weather is a huge consider our market and the terrible start to this year has actually impacted many services, not just the bookmakers. It is not unexpected that earnings have actually plunged, but the real test will be through the spring and summer season," stated Andy Bell from Bettingodds.com, external.