Paddy Power shares fall as Donald Trump victory eats into winnings

Shares in betting services firm Paddy Power-Betfair fell by over 3% yesterday after the company said fourth-quarter revenues took a £40m (€46.5m) hit on the back of unfavourable sporting results and the outcome of the US presidential election.
Paddy Power shares fall as Donald Trump victory eats into winnings

The company lost £5m, alone, on the US election. Around £4m of that went to people who bet on a Donald Trump victory, but the company had also made the early call to pay out — in October — on a Hillary Clinton win, which cost it nearly £1m.

A string of unfavourable football results — particularly a large number of favourites winning English Premiership matches — also negatively affected Paddy Power-Betfair’s fourth-quarter performance.

Those results saw online revenues fall by 3%, year-on-year, in the fourth quarter.

Total group revenue, for the last quarter, rose by 10%, though, to £388m. The £40m hit doesn’t account for the recycling of winnings.

In its latest trading update — ahead of the publication of annual results in March — the company yesterday said 2016 group revenues jumped 18% to £1.55bn.

It added that underlying earnings should come in at the mid-point of its previously guided range of £390m-£405m.

Analysts had expected earnings at the lower end of that guidance, on the back of recent poor performance updates from peers Ladbrokes and William Hill.

Paddy Power-Betfair shares were down by 3.1% at €96.80 in Dublin.

The company said that the benefit of its wide-reaching international footprint was highlighted with a strong performance from its Sportsbet business in Australia, which saw revenue growth of 18% in the fourth quarter and amounts staked by customers jump by 25%.

More in this section

IE logo
Devices


UNLIMITED ACCESS TO THE IRISH EXAMINER FOR TEAMS AND ORGANISATIONS
FIND OUT MORE

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Puzzles logo
IE-logo

Puzzles hub


Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Some of the best bits from irishexaminer.com direct to your inbox every Monday.

Sign up
Execution Time: 0.223 s