Bookmaker Paddy Power has reported a 10% increase in first-half pre-tax profits to €47.1m, but has lowered its target for the full year because of weaker Irish and UK economies and better results for punters.
The bookmaker said earnings per share rose by 17% to 82.3 cent. It said it had a favourable run of sporting results in the first six months, which offset a €2.5m from the stronger euro against sterling.
But chief executive Patrick Kennedy said there had been a string of unfavourable results for bookmakers since June, while growth rates had slowed in line with economic conditions. This meant it was lowering its forecast for operating profit for 2008 from around €82m to €75m, only slightly up from 2007's €72m.
In the first half, profits from online betting surged by 43% to €21m, almost half of its total profits. But profits in the Irish betting shops slipped 9% to €20.5m. The UK betting shops made a small profits of €500,000, compared with a loss a year earlier.
Paddy Power now has 67 UK shops, helped by the acquisition of eight in Northern Ireland, and is now planning shops in Glasgow, Manchester and further expansion in Northern Ireland. It has upped its UK shops target from 120 to 150 by 2011.
Paddy Power shares closed down 90 cent at €15.15 in Dublin this evening.
