Paddy Power cuts forecast profits
Published Date:
28 August 2008
A SHIVER was sent through the bookmaking sector yesterday after Paddy Power cut its profits guidance because of poor sporting results and tougher economic conditions.
The group, which trades in the UK and Ireland, expects figures for 2008 to exceed last year's level, but not by the amount hoped for in the summer.
Paddy Power said sports results for bookmakers had been poor since June, particularly for Irish firms following home successes for golfer Padraig Harrington and jockey Aidan O'Brien. The strong performance of favoured teams at Euro 2008 also worked against bookies.
The Dublin-based company said growth rates since the start of July had slowed, with amounts staked at its retail arm up by 2 per cent, against 7 per cent in the first half.
Assuming a reasonable run of results, Paddy Power now expects operating profits for the year of 75 million (£59.7m), up from 72m a year earlier but lower than the consensus forecast of 82m.
The company has 67 shops in the UK but said it planned to extend this to at least 150 sites by 2011.
The amount left by unsuccessful punters in its UK shops rose 5 per cent to 15.8m in the first half of the financial year.
The full article contains 213 words and appears in The Scotsman newspaper.
-
Last Updated:
27 August 2008 8:25 PM
-
Source:
The Scotsman
-
Location:
Edinburgh
