Legislation slows Paddy Power - Betfair’s shares

Pending legislation in the UK could weigh on betting services giant Paddy Power-Betfair’s stock performance, analysts have warned.

The group’s share price was down nearly 4% yesterday despite a positive first- quarter trading update which showed a 23% rise in total revenue to £416m (€492m) and an 87% rise in underlying earnings to £111m. Underlying operating profits more than doubled to £91m and retail revenue was £3m ahead of forecast.

Merrion Stockbrokers currently has a ‘hold’ sticker on the Paddy Power stock and analyst Darren McKinley issued a note of caution yesterday, despite saying the continued move to digital and mobile coupled with a strong management team equal a “recipe for continued success”.