Paddy Power bails out of spread-betting game
Published 12/03/2011 | 05:00
Paddy Power has exited entirely from spread-betting and Contract for Difference (CFD) trading.
Customers who use the service -- Paddy Power Trader -- were told this week in an email that the facility will now be operated by Capital Spreads, a UK company owned by London Capital Group (LCG).
Paddy Power had used a service from LCG as the base for its own spread-betting offer.
"For some time, we have been evaluating options to further invest in Paddy Power Trader to grow its contribution to a worthwhile level," the company said in a statement.
"We have concluded that the balance of risk and reward is not favourable for such an investment relative to our other opportunities and we are winding down the service."
The company added that the bulk of staff working on Paddy Power Trader have already been redeployed internally.
This week, Paddy Power reported a 56pc rise in operating profit to €104m for 2010.