Punters’ luck hammers Power profits

BOOKMAKERS Paddy Power came a cropper at the Grand National and Cheltenham with a winning streak by punters, slashing a full €4 million off expected operating profits for the first six months of the year.

The market reacted swiftly to the news, wiping €33 million off the company’s market capitalisation as the shares plunged in value by 12.5% from €5.60 to €4.90 in early trading. This fall grew to 13.39% by midday, but by close of business, the shares rallied slightly and were trading at €5.05, a 9.82% fall on the day.

The reversal of fortunes in the opening furlongs of Paddy Power’s first six months was confirmed in a profit warning statement issued by the company yesterday and comes hot on the heels of similar announcements by British rivals like Stanley Leisure.