Shares at Paddy Power plummet as betting group cuts full year guidance
Shares in gambling group Paddy Power have slumped 9pc this morning after it cut its profit outlook.
The company said it’s been hit by adverse Champions League football results and racing outcomes in Australia that reduced its gross win to the tune of €10m between July and the middle of November.
Releasing a trading update to shareholders, Paddy Power said that while its overall underlying performance has been good in the latest period, sporting results have been unfavourable.
“We now expect to achieve low to mid-single digit percentage operating profit growth in 2013 in constant currency, before currency translation headwinds of 3pc,” the company said. “This is approximately €11m lower than the mid-point of our guidance at the time of our interim results.”
It added that online competition in the UK has continued to strengthen in advance of a new tax regime that is expected to be introduced there at the end of 2014.
It said that stakes made at its Irish retail outlets maintained a posiitve trend that had been witnessed in the first half of the year. Like-for-like growth of 5pc in the period exceeded that achieved in any six-month period since 2007, it added.