Trump victory upsets Paddy Power as customer wins weigh on profits
The election of Donald Trump as US president cost betting giant Paddy Power around €5.7m(£5m) in the final quarter of last year.
Preliminary results show revenues rose to €1.79bn(£1.55bn) in the twelve months to December of last year.
Overall group revenues rose by 18pc last year compared to 2015, but the company said that favourable customer results had hindered profit margins.
Paddy Power said it expected the underlying EBITDA to be around the mid point of the previously guided range between £390m and £405m.
The company said that while it continued to see strong sportsbook growth, the favourable customer results had held back earnings.
The shock result of the US election was cited as one factor, with Paddy Power saying the election results had cost the company around £5m.
In the final quarter of 2016, the company said that customer friendly results had cost around €46.3m (£40m). The impact of these costs was mitigated by lower staff and marketing costs, the company said.
The company’s online offering contracted by 3pc over the course of the year, with the aforementioned sports results and weaker than expected participation in gaming cited as primary factors. That was despite an overall increase of 10pc in the number of sports bets placed online.
There was a 25pc increase in the number of bets places in Australia, with revenue growing by 18pc in the country.