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Paddy Power Betfair boss defiant despite headwinds

The boss of Paddy Power Betfair has insisted the betting giant is getting “its mojo back” thanks to the World Cup, despite headwinds in the US and Australia.
The bookmaker disappointed investors on Wednesday as half-year revenue growth missed expectations and full-year earnings guidance was trimmed by around ?12.5m.
Chief executive Peter Jackson said changes to the FTSE 100 company’s full-year projections were a partly a result of changes to the Australian tax regime, and partly connected with Paddy Power Betfair’s $770m takeover of US fantasy sports company FanDuel.
June’s football World Cup netted Paddy Power Betfair an extra ?22m in revenue and ?8m in profit.
Paddy Power Betfair boss defiant despite headwinds

Russia scoring against Saudi Arabia in the football World Cup

Credit:
Robbie Jay Barratt - AMA/Getty Images Europe
Mr Jackson said the tournament had allowed Paddy Power to “showcase our business” with a range of more risque advertisements. The company signalled plans to beef up marketing spend in March after losing market share. The World Cup campaign included a pledge to donate ?10,000 to a LGBT charity for every goal scored by Russia, a country that has been criticised for implementing so-called “anti-gay” laws.
“I don’t know who has a hotline to Putin, but whoever arranged for the 5-0 thumping of Saudi Arabia in the first match couldn’t have given us a better start to the tournament,” said Mr Jackson.
“We are very pleased in the way the World Cup performed for us... I would say that Paddy Power has got its mojo back.”
Paddy Power Betfair boss defiant despite headwinds

Paddy Power Betfair said marketing had gone well during the football World Cup
Investors were disappointed, however, as the 5pc growth in half-year revenue missed expectations. Profit before tax for the six months to June was 4pc higher at ?106m. Full-year earnings guidance, meanwhile, was trimmed from a mid-point of ?482.5m to ?470m.
Investec analyst Alistair Ross labelled Paddy Power Betfair’s half-year performance as a “solid miss”, adding that online growth of 5pc lagged his expectation of a 9.9pc increase.
Ed Monk, an associate director at Fidelity Personal Investing said although second-quarter revenue was 13pc higher, the bookmaker’s revenue was up 9pc before the World Cup started.
He added: “Paddy Power Betfair stands to gain from the opening up of US betting markets, confirmed earlier this year, and has moved quickly to expand its FanDuel site to capitalise. That benefit, though, now appears to be priced in to the shares and investors will want to see improved operational performance and a return to growing market share from here.”
Markets Hub - Paddy Power Betfair
Paddy Power Betfair shares fell 3.3pc in morning trading to ?75.55.
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