Paddy Power shares slump on outcomes
Shares in Paddy Power Betfair have fallen by about 5% after the bookie revealed disappointing first-quarter outcomes.
The company's underlying operating revenue fell to ₤ 80m, compared to ₤ 91m for the very 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 yohaig code US likewise took their toll.
The firm stated it was planning to return ₤ 350m of money to investors in the next 12 to 18 months, with a share buyback program to be started shortly.
Paddy Power Betfair opened three brand-new shops in the UK and 2 in Ireland throughout the quarter, taking its total to 631.
'Good progress'
The business stated group revenue was down 2% at ₤ 408m for the quarter,
Growth in football betting was balanced out by "weak point in horseracing, which was negatively 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 development versus our strategic top priorities," stated primary executive Peter Jackson.
"In Europe, the effective conclusion of our platform combination has led to a meaningful improvement to the yohaig code Paddy Power item.
"In Australia, Sportsbet continues to carry out well and is targeting additional market share growth."
"Weather is a huge consider our industry and the dreadful start to this year has actually impacted many services, not simply the bookmakers. It is not surprising that revenues have dropped, but the genuine test will be through the spring and summer," stated Andy Bell from Bettingodds.com, external.
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