Paddy Power upbeat despite losing streak

Bookmaker Paddy Power today said a run of punter-friendly sporting results caused operating profits to drop 26% in the six months to June 30.

The success of England's big four football teams at the end of last season and a run of Irish-trained winners at the Cheltenham racing festival meant Power's gross win - the amount left by losing punters - was lower than expected.

The Dublin-based company, which also has 83 shops in the UK, described the unfavourable results as a "normal occupational hazard" and said its underlying performance remained strong.

Operating profits were down 43% in Ireland, but the company said its share of the market increased to 29% from 26% a year earlier.

Operating profits dipped to €33.5m, with its online division showing a rise of 3% to €21.8m in the six months and its UK retail estate down 12% to €460,000.

Chief executive Patrick Kennedy said the company now boasted a "very strong position" in the UK online betting market after a 24% increase in the number of active customers to 178,000 at the end of June.

"This market share growth is not an accident - value, product and brand are in our DNA."

The company said the difficult economic conditions made life harder for its retail businesses in the Ireland and the UK.

However, it is on track to achieve its target of at least 150 shops in the UK by 2011 following the opening of 15 new sites in the year to date, including in Manchester and Glasgow.

Ladbrokes and William Hill, rival operators, recently reported falls in profits for the six months and said trading conditions were tough.