Paddy Power Betfair upgrades full-year forecasts
Paddy Power Betfair has upgraded its full-year profit forecasts as high-rollers from New York splurging 1.5 million US dollars (£1.1 million) a day boosted its performance in the US.
The bookmaker now expects full-year earnings to come in between £465 million and £480 million – up from between £460 million and £480 million – following a surge in betting at the Meadowlands Racetrack in New Jersey.
It generated more than 1.5 million US dollars (£1.1 million) of stakes per day in October, making it one of the biggest sports betting outlets in the world, the bookmaker said.
Approximately 30% of all bets booked at the track are estimated to have come from New York residents.
However, the firm saw group profit knocked in the third quarter after booking losses at its fantasy sports business in the US, FanDuel.
The bookmaker saw underlying earnings slip 16% to £101 million in the three months to September 30, or 15% down on a constant currency basis.
Revenue grew 10% year on year, or 12% in constant currency, to £483 million.
Sales were driven by online, which saw a 15% jump in revenue. But its high street outlets in the UK suffered a 1% decline and fell by 6% in Ireland.
Paddy Power Betfair chief executive Peter Jackson said: “Quarter three was a good quarter for the group. In Europe, the encouraging momentum that we saw in quarter two accelerated further, with online revenue up 15%.
“This momentum, which was evident in both Paddy Power and Betfair, is driven by enhancements in product and good execution in promotions and marketing.
“In the US, the exciting potential of the sports betting opportunity and the strength of our strategic positioning has been evidenced by our experience to date in New Jersey.”
In the UK, bookies have also been warning about the impact of a recent Government move to slash stakes on fixed-odds betting terminals.
Paddy Power said the new £2 stake limit would result in a 33% to 43% decrease in machine gaming revenue, or £36 million to £46 million revenue impact.