Paddy profits from stakes in the States

PADDY POWER BETFAIR has upgraded its full-year profit forecasts as high rollers from New York splurging more than a $1million (£771,000) a day boosted its performance in the US.

The bookmaker expects full-year earnings to come in between £465million and £480million – up from between £460million and £480million – following a surge in betting at the Meadowlands Racetrack in New Jersey.

It generated more than $1.5million of stakes per day in October, making it one of the biggest sports betting outlets in the world, the bookmaker said.

Approximately 30 per cent of all bets booked at the track are estimated to have come from New York residents.

Paddy Power Betfair shares jumped 125p to 7,035p in trading yesterday as a result of this American boost.

However, group profits were knocked in the third quarter after booking losses at its fantasy sports business in the US, FanDuel.

Underlying earnings slipped 16 per cent to £101million in the three months to September 30, 15 per cent down on a constant-currency basis. Revenue grew 10 per cent year on year, or 12 per cent in constant currency, to £483million.

Sales were driven by online revenue, which jumped 15 per cent but its high street outlets suffered a 1 per cent decline and fell by 6 per cent 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 per cent.

“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.”

However, bookies have been warning about the impact of the Government’s crackdown on fixed-odds terminals.