Paddy Power Shares Slump On Results
Paddy Power shares slump on outcomes
Shares in Paddy Power Betfair have fallen by about 5% after the bookie unveiled disappointing first-quarter outcomes.
The company's underlying operating earnings was up to ₤ 80m, compared to ₤ 91m for the very 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 likewise took their toll.
The company stated it was preparing to return ₤ 350m of cash to investors in the next 12 to 18 months, with a share buyback programme to be started soon.
Paddy Power Betfair opened 3 new stores in the UK and two in Ireland during the quarter, taking its total to 631.
'Good progress'
The company stated group profits was down 2% at ₤ 408m for the quarter,
Growth in football betting was offset by "weak point in horseracing, which was negatively affected by the high level of weather-related cancellations".
It expects full-year revenues to come in at in between ₤ 470m and ₤ 485m.
"We have made great development against our tactical concerns," stated president Peter Jackson.
"In Europe, the successful completion of our platform combination has actually led to a meaningful improvement to the Paddy Power item.
"In Australia, Sportsbet continues to carry out well and is targeting additional market share development."
"Weather is a huge factor in our industry and the dreadful start to this year has actually affected lots of companies, not simply the bookies. It is not surprising that earnings have plunged, however the real test will be through the spring and summer season," stated Andy Bell from Bettingodds.com, external.
Paddy Power shares slump on outcomes
Shares in Paddy Power Betfair have fallen by about 5% after the bookie unveiled disappointing first-quarter outcomes.
The company's underlying operating earnings was up to ₤ 80m, compared to ₤ 91m for the very 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 likewise took their toll.
The company stated it was preparing to return ₤ 350m of cash to investors in the next 12 to 18 months, with a share buyback programme to be started soon.
Paddy Power Betfair opened 3 new stores in the UK and two in Ireland during the quarter, taking its total to 631.
'Good progress'
The company stated group profits was down 2% at ₤ 408m for the quarter,
Growth in football betting was offset by "weak point in horseracing, which was negatively affected by the high level of weather-related cancellations".
It expects full-year revenues to come in at in between ₤ 470m and ₤ 485m.
"We have made great development against our tactical concerns," stated president Peter Jackson.
"In Europe, the successful completion of our platform combination has actually led to a meaningful improvement to the Paddy Power item.
"In Australia, Sportsbet continues to carry out well and is targeting additional market share development."
"Weather is a huge factor in our industry and the dreadful start to this year has actually affected lots of companies, not simply the bookies. It is not surprising that earnings have plunged, however the real test will be through the spring and summer season," stated Andy Bell from Bettingodds.com, external.