Paddy Power Shares Slide Sharply
Ireland's largest bookmaker, Paddy Power, witnessed a sharp decline in its share price on Tuesday.
Paddy Power fell 7.8pc to €11.90, bringing its decline to 11pc so far this year.
The drop was believed to be related to data showing that the Irish horseracing industry shrank in 2008 for the first time in 15 years, according to a report in the Independent.
The figures "give some indication of the impact the weaker consumer environment is having on gambling spend in Ireland", Gavin Kelleher, an analyst at Merrion Stockbrokers in Dublin, wrote in a note on the bookmaker.
Indeed, Ireland has been hit especially hard by the world economic crisis.
Nevertheless, after a week of job losses and warnings yesterday of major cuts in the Republic's public sector, a former adviser to the US government has given a surprisingly upbeat assessment of Ireland's economic prospects for the rest of the decade.
Within the next 10 years Ireland's growth rates will be higher than the economies of main competitors such as Germany and France according to Dr Robert E Kennedy, head of business administration at the University of Michigan.
That good news won't help Paddy Power this year though. The bookmaker has already cut its profits guidance for the year due to poor sporting results and tougher economic conditions.
Jagajeet Chiba, Gambling911.com
