Paddy Power Betfair's shares rose sharply today after it increased its full-year profit guidance, citing a boost in the sterling value of its euro revenue, this year's merger and favourable sporting results.

The bookie chain said it expect reported core earnings (EBITDA) for the full year of £390-405m, up from a previous guidance of between £365-385m. 

It said it expected synergies from the merger of Paddy Power and Betfair to be £35m rather than £30m in 2016.

It also reported a £28m benefit from the translation of non-UK revenue due to the weakness of the British pound.

In today's results statement, Paddy Power Betfair said its revenue for the three months to the end of September jumped by 25% to £404m.

Its underlying operating profit for the third quarter soared by 68% to £95m. 

The company said the growth was driven by sports, including a strong conclusion to the Euro 2016 soccer tournament, with sportsbook stakes up 26%.

"This was another good quarter for Paddy Power Betfair. We are continuing to focus on building a stronger combined operation by exploiting the unique assets and capabilities of each legacy business, and on using our scale to better serve our customers," commented the company's CEO Breon Corcoran.

The group opened three shops in the UK during the quarter, taking its total portfolio across the UK and Ireland to 606 shops.

Betfair and Paddy Power, which have a chain of shops as well as an online business, completed their £6 billion merger in February.

Shares in the company were sharply higher in Dublin trade today.