Paddy Power on Track to Record Operating Profits

Bookmaker Paddy Power has said it is on track to record operating profits of around €75m for this year, in line with its previous outlook.

In a trading update, the company said this assumed a 'normal run' of sporting results. Paddy Power said this would translate into earnings growth of 10% for the full year, despite a €5m hit to profits from a weaker sterling.

The bookmaker said deteriorating economic conditions were affecting its business, but it was responding by tightly managing costs.

Paddy Power said online betting now accounted for over 60% of its profits, but turnover in betting shops has declined. It said the increase in betting tax announced in the Budget would hit its profits by €9m to €10m next year.

Paddy Power shares dropped 80 cent to close at €12.20 in Dublin