Paddy Power shares plunge on results
Shares in Paddy Power Betfair have fallen by about 5% after the bookmaker revealed frustrating first-quarter results.
The company's underlying operating revenue was up to ₤ 80m, compared to ₤ 91m for the exact same period in 2017.
It blamed bad weather condition in March for lower earnings 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 stated it was preparing to return ₤ 350m of money to investors in the next 12 to 18 months, with a share buyback programme to be started quickly.
Paddy Power Betfair opened 3 brand-new shops in the UK and 2 in Ireland during the quarter, taking its overall to 631.
'Good development'
The company said group revenue was down 2% at ₤ 408m for the quarter,
Growth in football betting was offset by "weakness in horseracing, which was negatively impacted by the high level of weather-related cancellations".
It expects full-year earnings to come in at between ₤ 470m and ₤ 485m.
"We have made great development against our strategic priorities," said primary executive Peter Jackson.
"In Europe, the effective conclusion 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 more market share development."
"Weather is a huge factor in our market and the awful start to this promotion code year has actually affected numerous businesses, not just the bookmakers. It is not unexpected that profits have actually plunged, however the genuine test will be through the spring and summer season," stated Andy Bell from Bettingodds.com, external.
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