Business

Paddy Power Betfair raises profit forecast

Euro 2016 winners Portugal Image copyright Getty Images

The Euro 2016 football tournament and the weakened pound have contributed to a bumper year for Paddy Power Betfair.

The firm has raised its forecast for underlying earnings in 2016 to £390m-£405m, a big upwards revision from its original forecast of £365m-£385m.

The weakened pound contributed to that, by adding £28m to the value of overseas earnings converted back into pounds.

A "strong conclusion" to the Euro 2016 football tournament also helped, according to Paddy Power.

In morning trade, shares in Paddy Power were the best gainer on the 100 index, rising more than 3%.

In February, Paddy Power merged with Betfair in a deal worth £5bn and it said the process of combining the two firms was "ahead of plan".

"This was another good quarter for Paddy Power Betfair," said Breon Corcoran, the chief executive of Paddy Power Betfair.

"Work is underway to combine the best of Betfair and Paddy Power's technology into a multi-brand, multi- channel, multi-jurisdictional platform that will start to unlock the full potential of the group's scale and will lead to increased pace of development and faster roll out of new products," he said.

Sales in the third quarter rose 25% to £404m and underlying operating profit rose by two thirds to £95m.

The company owns 600 betting shops in the UK and Ireland, two of Europe's biggest online betting operations, and significant businesses in Australia and the US.

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