Shares in Paddy Power Betfair popped today after it raised full-year guidance, despite the absence of a major football tournament.
The bookie said revenues rose to £440m in the three months to the end of September, up eight per cent at constant currency rates.
Underlying operating profit rose eight per cent to £101m, while underlying earnings before interest, taxation, depreciation and amortisation rose nine per cent to £121m.
The company said it now expected its full-year underlying earnings before interest, taxation, depreciation and amortisation to fall somewhere between £450m and £465m.
Shares were up 4.8 per cent at 8,075p in late afternoon trading.
Why it's interesting
Given the third quarter of last year included Euro 2016, Paddy Power could have had a difficult period this year. But it said despite the absence of a major sporting tournament, it continued to perform strongly.
That strength was partly driven by its Australian and US divisions, where revenues rose 29 per cent and 18 per cent respectively.
In the UK the company, which owns 623 betting shops, faces increasingly tough regulation, after the government yesterday announced plans to cut the maximum stake on so-called fixed odds betting terminals to as little as £2.
Breon Corcoran, the company's chief executive, complained the review failed to provide clarity. "Hopefully we will get there at the next stage," he told the BBC.
What Paddy Power said
[The third quarter] was an encouraging quarter for Paddy Power Betfair, with good stakes growth despite the absence of a major football tournament.
Our international businesses performed particularly well. In Australia, the winning combination of innovative product and marketing excellence continued to deliver exceptional results, with revenue up 29 per cent, while US revenue was up 18 per cent.
In the new year, I will hand over leadership of the group to Peter Jackson and, while the industry remains highly competitive and is exposed to regulatory risks, I believe the business' scale, leading capabilities and market positions mean it remains well placed to deliver sustainable, profitable growth.