Paddy Power shares drop on results

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

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

It blamed bad weather in March for lower profits 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 planning to return ₤ 350m of cash to shareholders in the next 12 to 18 months, with a share buyback programme to be started quickly.

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

'Good progress'

The business stated group earnings was down 2% at ₤ 408m for the quarter,

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

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

"We have actually made great progress versus our tactical priorities," said president Peter Jackson.

"In Europe, the successful conclusion of our platform combination has actually led to a significant improvement to the Paddy Power item.

"In Australia, Sportsbet continues to perform well and is targeting additional market share growth."

"Weather is a huge element in our industry and the dreadful start to this promotion code year has actually affected lots of organizations, not just the bookies. It is not surprising that revenues have actually dropped, however the genuine test will be through the spring and summertime," stated Andy Bell from Bettingodds.com, external.

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