Paddy Power reveals cost of ‘poor’ sporting results

Paddy Power reveals cost of ‘poor’ sporting results

Tuesday, November 17, 2015 Totally Gaming
Customers benefited from many favourites winning in football and racing

Paddy Power said that its merger with Betfair is on course despite revealing €96m ($102.5m) of net debt in an interim statement.

In an update on its performance from July 1 to November 15, the gaming operator revealed a net debt for the first time in over two years despite a seven per cent net revenue increase in both online sports betting and retail sports betting.

Paddy Power reported trading was “in line with expectations,” with poor sports results, which have affected the industry as a whole, offset by strong growth. It added that it expects full year operating profit to be a mid to high single digit percentage increase above 2014.

Paddy Power is in the process of a €5bn merger with Betfair, with last week reporting that the deal is the subject of an investigation by the UK’s Competition and Markets Authority (CMA).

A company spokesperson said: “Relevant filings have been submitted to applicable regulators and we expect to publish shareholder documentation in the coming weeks. Further updates will be announced to the market as they become known.”

The business said earlier this month in the Uefa Champions League, favourites such as Manchester United, Bayern Munich, Barcelona and Juventus all won, which helped customers betting on accumulators. 

It added that September was a poor month for bookmakers in horse racing. The firm pointed out that on St Leger Day, Simple Verse was disqualified, then reinstated 11 days later in favour of well-backed Bondi Beach, which saw the chain pay out on both horses.

Analysts at Peel Hunt said: “In what was a challenging period versus a very strong 2014, Paddy has emerged in pretty good shape.”

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