Published: Tue, August 08, 2017
Life&Culture | By Rose Hansen

Paddy Power Betfair blames bad results on bad results

Paddy Power Betfair blames bad results on bad results

"Paddy Power Betfair delivered an earnings miss due to net revenue margins coming in below our expectations once again", said analysts at Davy Research, as quoted by Reuters.

Paddy Power Betfair Plc (LON:PPB) opened at 7210.00 on Monday. He has been in the role for around 18 months, since the £7bn merger of Paddy Power and Betfair was completed past year.

Revenue for the first half of the year totalled £827 million, including a £40 million surplus as a result of pound weakness since the Brexit vote, which boosted overseas sales.

Underlying Ebitda for the full year is expected at between GBP445 million and GBP465 million.

Intercontinental Hotel and Paddy Power Betfair were the worst-performing after disappointing results, helping the pan-European travel and leisure sector fall 0.6 percent.

Shares in Holiday Inn owner Intercontinental Hotels Group (LON:IHG) fell 3.6% as the company reported revenue growth per room had slowed in the second quarter although profit had increased for the first half.

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Iowa's Alcoholic Beverages Division has warned people about this, added that the copper and its alloys possess some bad qualities. Complete with a lime garnish, the drink serves up aesthetically pleasing photo-ops for outlets like Instagram .

"Ahead of that, our customers and shareholders are already seeing benefits from efficiencies and investments. In the first half alone, customers enjoyed approximately £30m of extra value through better odds, more generous offers and new loyalty benefits", he commented. Numis Securities Ltd's price objective would indicate a potential upside of 5.96% from the stock's current price.

"Paddy Power Betfair's P/E [price/earnings] rating has gradually sunk to its knees and it makes no sense to us", the broker said.

"We are seeing big rebounds in energy and materials", said Alex Dryden, global market strategist at JP Morgan Asset Management.

The broker thinks the shares are worth ten quid. Barclays PLC reaffirmed an "overweight" rating and issued a GBX 9,550 ($124.37) target price on shares of Paddy Power Betfair Plc in a research report on Friday.

The price is down 17.5% since the start of the year following concerns about what the company in May called a "pretty extreme" level of competition in its core European markets and increasing regulatory pressures in Britain and Australia.

The shares were down 5.2% at 7,155p in mid-morning trade.

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