Shares in Paddy Power were down 4 per cent in early trading today after the bookmaker cut its full-year outlook due to the introduction of additional taxes and losses from its growing US business.
The company reported a 4 per cent rise in first-half profits to £106m. “We have made substantial progress against our strategic priorities and trading in Q2 was good, with all brands and operating divisions contributing to the group’s double-digit revenue growth,” Paddy Power Betfair Chief Executive Peter Jackson said in a statement.
However, it expected underlying earnings before interest, taxation, depreciation and amortisation, and before the impact of US sports betting, to be between £460-480m — down from an estimated range of £470m to £495m at its first-quarter results.
Paddy Power Betfair had agreed in May to merge its US business with the fantasy sports company to target a market that is set to open up in the coming years.