Paddy Power Betfair Suffers on Bad Results

Paddy Power Betfair is blaming the lack of a major football tournament to entertain gamblers as one of the reasons for its slowdown in growth over the first half of the year. The bookmaker also said that it had seen some unfavourable sports results.

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shareprices.com - Friday, August 11, 2017

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Shares in the betting company fell sharply for the second day in a row, as the bookmaker struggled to recover from the news that Breon Corcroan was resigning as chief executive.

The company was the poorest performer in the FTSE 100 on Tuesday, and continues to struggle, after having reported that first-half revenues were just £827 million, including a £40 million boost thanks to the ongoing weakness of the pound.

Revenues increased by 23 percent during the first quarter, thanks in part to beneficial sporting results at Cheltenham Festival. Meanwhile, underlying earnings for the first half, overall, were up by just 21 percent. Corcoran said that the company was investing in a bid to improve its position in what is a highly competitive market, and that it would be spending more on promotions, as well as cutting odds for customers.

The customers and shareholders are seeing benefits from the existing investment into efficiency, with customers enjoying £30 million in better value through improved odds, loyalty benefits and offers, but there is still some way to go. Peter Jackson will be taking Corcoran’s place at the company, but his start date has not yet been confirmd. Jackson is currently chief executive of the UK arm of Worldpay.

 

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