Paddy Power Betfair reveals Trump win cost it £5m

 
Caitlin Morrison
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President-Elect Donald Trump Holds Press Conference In New York
Trump cost the bookmaker £5m when he won the US election (Source: Getty)

Paddy Power Betfair expects to report group revenue growth of 18 per cent in 2016 when it publishes its full-year results.

The figures

Group revenue rose 18 per cent year-on-year, to £1.55bn, from £1.23bn.

In the fourth quarter, revenue was up 10 per cent to £388m from £351m. This included a 12 per cent increase in sports revenue, which hit £299m.

Shares in the company dipped 1.7 per cent at the open.

Why it's interesting

Paddy Power Betfair, which was formed out of the merger of Paddy Power and Betfair in February last year, said it had seen good sportsbook staking growth - but results favoured its customers, beginning with the US election results, which cost the group almost £5m.

The firm's European sportsbooks also lost money on football bets in December.

What Paddy Power Betfair said

"We estimate that the impact on group revenue from the customer friendly results, before any benefit from the re-cycling of winnings, was approximately £40m in the quarter," the company said in this morning's trading update.

"The impact on profitability of these results was partially offset by lower than expected marketing and staff costs."

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