UNFAVOURABLE football and horse racing results led Paddy Power to warn yesterday that its full year operating profit would be €11m (£9.2m), lower than it forecast three months ago.
“We now expect to achieve low to mid single digit percentage operating profit growth in 2013 in constant currency, before currency translation headwinds of three per cent,” said Paddy Power in an interim management statement covering 1 July to 17 November.
Champions League football and the recent Australian Spring Racing Carnival contributed to poor sports results that the group said reduced its gross wins by €10m.
Paddy Power’s online division reported like-for-like sports revenue growth, excluding Australia, of 15 per cent.
“Poor sports results have been well flagged by others and today’s lower guidance should not come as a surprise,” said Peel Hunt analyst Nick Batram who maintained his hold rating for the stock but put its target price under review.
Paddy Power’s share price fell 8.1 per cent to close at €57.4 yesterday.