Paddy Power shares plunge on outcomes

Shares in Paddy Power Betfair have actually fallen by about 5% after the yohaig code bookmaker unveiled frustrating first-quarter outcomes.

The company's underlying operating revenue fell to ₤ 80m, compared to ₤ 91m for the very same duration in 2017.

It blamed bad weather condition in March for lower incomes from horseracing after 14% of UK and Irish races were cancelled.

New betting taxes and start-up losses in the US also took their toll.

The firm stated it was preparing to return ₤ 350m of money to investors in the next 12 to 18 months, with a share buyback program to be initiated shortly.

Paddy Power Betfair opened three new shops in the UK and two in Ireland during the quarter, taking its total to 631.

'Good progress'

The company said group income was down 2% at ₤ 408m for the quarter,

Growth in football betting was balanced out by "weak point in horseracing, which was adversely impacted by the high level of weather-related cancellations".

It expects full-year profits to come in at between ₤ 470m and ₤ 485m.

"We have made great development against our strategic priorities," stated president Peter Jackson.

"In Europe, the yohaig code effective completion of our platform combination has actually led to a meaningful improvement to the Paddy Power item.

"In Australia, Sportsbet continues to carry out well and is targeting more market share growth."

"Weather is a big factor in our market and the terrible start to this year has actually impacted numerous services, not just the yohaig code bookies. It is not surprising that revenues have actually slumped, however the yohaig code genuine test will be through the yohaig code spring and summertime," stated Andy Bell from Bettingodds.com, external.

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