Paddy Power confirms earnings guidance despite results going against it
Irish bookmaker Paddy Power has confirmed its earnings guidance for the year even though it has had several sports results go against it.
In an interim management statement covering the period from the start of July to 15 November the company said it expects operating profit to be "a mid to high single digit percentage increase above 2014" (when it was €163.8m). Davy Stockbrokers is guiding for an 8.4pc increase.
The firm said: "Trading in the period has been in line with our expectations.
"While sports results in the period were unfavourable across the sector, for Paddy Power this has been offset by strong underlying growth.
"In online, sports betting stakes were up 23pc and total net revenue was up 7pc. In retail, sports betting stakes grew by 12pc and total net revenue by 7pc."
Paddy Power said that in its Irish retail operations like-for-like stakes grew by 8pc and net revenue by 4pc, which the company said was "driven by our market leading customer offering, with the benefit of an improving economy".
It added that turnover at its UK and Irish online business was impacted by "very favourable" sports results and the fact that there was a football World Cup within the comparative period. Total net revenue decreased by 9pc.
Net debt for Paddy Power stood at €96m at the end of the period.