Paddy Power shares plunge on results

Shares in Paddy Power Betfair have fallen by about 5% after the bookie revealed disappointing first-quarter results.

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

It blamed bad weather 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 yohaig code firm said it was planning to return ₤ 350m of cash to shareholders in the next 12 to 18 months, with a share buyback programme to be started soon.

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

'Good progress'

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

Growth in football betting was balanced out by "weakness in horseracing, which was adversely affected by the high level of weather-related cancellations".

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

"We have made good development against our tactical concerns," stated president Peter Jackson.

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

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

"Weather is a big factor in our market and the terrible start to this promotion code year has impacted lots of organizations, not just the bookmakers. It is not unexpected that profits have actually plunged, but the real test will be through the spring and summertime," stated Andy Bell from Bettingodds.com, external.

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