Paddy Power shares slide by 7.8pc
SHARES in bookmaker Paddy Power fell sharply yesterday in response to figures showing that the Irish horseracing industry shrank in 2008 for the first time in 15 years.
Paddy Power fell 7.8pc to €11.90, bringing its decline to 11pc so far this year.
Horse Racing Ireland, the government agency that runs the sport, said on Monday that on-course betting fell 18.2pc in 2008 because of the economic decline and bad weather.
The figures "give some indication of the impact the weaker consumer environment is having on gambling spend in Ireland", Gavin Kelleher, an analyst at Merrion Stockbrokers in Dublin, wrote in a note on the bookmaker.
The decline in betting was also evident at this year's Christmas Leopardstown race meeting. While attendance at the four-day festival held up reasonably well, betting turnover fell on the State-controlled Tote and in the bookmakers' ring.
At 59,000, the crowd fell by just 2,000 over the four days, while betting on the tote fell by over €400,000 to €1.9m.
The bookmaker has already cut its profits guidance for the year due to poor sporting results and tougher economic conditions.
- Pat Boyle
