..

Blame it on the Weather: Bookmaker has Every Excuse in the Book for Bad Returns

Written by:
Guest
Published on:
May/02/2018

Bad weather, a string of Arsenal defeats and cancelled races, you name it, Irish bookmaking behemoth Paddy Power is pointing the figure following a 2% drop in revenue to £408m in the three months to 31 March.

A major snow storm, dubbed the "Beast From the East" led to the cancellation of about 400 horse races in the UK and Ireland between January and March.

The book was also hit hard by a string of Arsenal losses between November and February.

Arsenal won a mere two away matches in the Premier League during that period.

“Customers like to win,” a spokesperson for the bookmaker said. “If you have a sustained run of bookmaker-friendly results it will have a knock-on effect on customer activity.”

Underlying earnings in the first quarter fell 8% to £102m, with full year 2018 earnings to be lower than initially forecast at between £470m and £495m, below City expectations of about £500m.

Greg Johnson, travel and leisure analyst at Shore Capital, expressed disappointment with the first quarter performance.  His firm lowered their recommendation from hold to sell.

“We do not believe that this slower growth and potential headwinds are fully factored into the [share] price,” he said.

Bookmakers have also had to deal with the possibility of a crackdown on the highly profitable fixed odds betting terminals in the coming months.

Revenue at Paddy Power’s Australian business, Sportsbet, rose 6% in the first quarter, despite adverse sports results.

“Sportsbet continues to perform well and is targeting further market share growth, with additional investment planned to take advantage of any disruption arising from market consolidation and the introduction of increased taxes,” Jackson said.

Not all the news surrounding Paddy Power was doom and gloom, however, as the company announced a return of £500m of cash to investors over the next 12 to 18 months through a share buyback program.

-- Aaron Goldstein, Gambling911.com

Business/Financial News

Three Important Features a Pay Per Head Should Offer

Three Important Features a Pay Per Head Should Offer

When selecting a Pay Per Head sportsbook software, there are three primary things to consider in addition to the required reporting, lines management and customer service component. 

BSV Network Attacked: CoinGeek Explains What Happened

BSV Network Attacked: CoinGeek Explains What Happened

The BSV Network has come under attack in recent weeks, more specifically June 24, 2021 and then again on July 1, 6 and 9.  This is likely to become a trend targetting all blockchain networks and crypto sites.

Powell Says a Fed Digital Currency Could Undercut Need for Cryptocurrencies

Powell Says a Fed Digital Currency Could Undercut Need for Cryptocurrencies

Federal Reserve Chair Jerome Powell on Wednesday said one of the stronger arguments for the U.S. central bank to set up a digital currency is that it could undercut the need for private alternatives such as cryptocurrencies and stablecoins.

Ethereum’s Virgil Griffith Violates Bail

Ethereum’s Virgil Griffith Violates Bail

Plus BSV a boon for advertising and affiliate marketing

What Should You Be Looking At When Choosing a Pay Per Head Service

What Should You Be Looking At When Choosing a Pay Per Head Service

Running a bookie is a challenge for some operators. As a result, they prefer hiring a licensed pay per head (PPH) company to manage key gambling operations and market their betting options. 

Syndicate