Paddy Power shares tumble 8%

Shares in betting and gaming giant Paddy Power slumped 8% yesterday, on the back of the company saying it expects to see less than double digit percentage growth in operating profits for the first time in four years in 2013.

The profit forecast, which sent the company’s share price spiralling by €5 to €57.45, was prompted by a poor run of sporting results in recent months (including Champions League football and Australia’s Spring Racing Carnival), resulting in the firm’s gross win tally 10m short of expectations.

While the Dublin-based company stressed, yesterday — via its latest trading update — that its overall underlying performance has been good since the halfway point of the year, it now expects low-to-mid-single digit percentage operating profit growth this year, in constant currency terms and before currency translation headwinds of 3%.