String of winners hits Paddy Power’s profits

A STRING of winners by the Aidan O’Brien stable has hit first-half profits margins at Paddy Power bookmakers.

In a trading update yesterday, the company said punters got the better of it in the first 19 weeks of the year by backing Irish horses in big races.

The company was not helped by Aidan O’Brien’s double success in the opening two classic races of the British flat season. The Ballydoyle trainer saddled Footstepsinthesand to win the 2000 Guineas and a day later took the 1000 Guineas with Virginia Waters.

Paddy Power also took a hit on Hedgehunter in the British Grand National and the nine favourites which won at the Cheltenham festival in March.

Finance director Ross Ivers said after the company’s annual general meeting that profits in the first-half of this year would be similar to that of last year.

“We had a few poor results in April.

“The year has a long way to go yet. You have some poor months and some good months,” Mr Ivers said.

Paddy Power said group turnover was up 30% so far compared to last year, with its shops seeing turnover up 19%.

At the online and telephone betting arms, turnover was up 67% and 30% respectively.

However, shares in the company slipped by 2.5% after the trading update to close at €13.50.

The company said revenues from its casino and gaming product were strong and expects a positive impact on profits.

Mr Ivers said the company was not too concerned about the arrival of William Hill - Britain’s biggest bookie - in Ireland. Hills have bought the 52 Stanley outlets here and will rebrand them under its name.

“We’re used to dealing with UK bookmakers in Ireland. When we started this business, Mecca, Stanleys, Coral and Ladbrokes were all the big players in the Irish market.”

Paddy Power has 144 outlets in Ireland, nearly double that of its nearest rival Boylesports.