Paddy Power shares drop on results
Shares in Paddy Power Betfair have fallen by about 5% after the bookmaker revealed disappointing first-quarter results.
The company's underlying operating profit fell to ₤ 80m, compared with ₤ 91m for the same period 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 said it was planning to return ₤ 350m of money to shareholders in the next 12 to 18 months, with a share buyback programme to be started soon.
Paddy Power Betfair opened 3 brand-new shops in the UK and 2 in Ireland throughout the quarter, taking its total to 631.
'Good development'
The company said group profits was down 2% at ₤ 408m for the quarter,
Growth in football wagering was offset by "weakness in horseracing, which was adversely impacted by the high level of weather-related cancellations".
It expects full-year revenues to come in at in between ₤ 470m and ₤ 485m.
"We have actually made great progress versus our strategic top priorities," stated president Peter Jackson.
"In Europe, the successful completion of our platform integration has actually led to a meaningful improvement to the Paddy Power item.
"In Australia, Sportsbet continues to perform well and is targeting more market share development."
"Weather is a huge consider our industry and the awful start to this promotion code year has actually impacted numerous services, not just the bookies. It is not unexpected that earnings have plunged, however the real test will be through the spring and summertime," said Andy Bell from Bettingodds.com, external.
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