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Paddy Power hits the rails

Paddy Power looks vulnerable after an autumn of continued sports losses

Paddy Power (PAP) shares dived by almost 10 per cent at one point after the Irish bookmaker issued its second profit warning this year. Paddy Power seems to suffer from a continuation of unfavourable sporting results, particularly from racing in Australia and Champions League football.

IC TIP: Sell at 5,755¢€

The betting losses in the period amounted to €10m (£8.4m), which will probably knock around €11m from operating profits for the year. The forecast for operating profits growth in 2013 of low to mid single digits was largely maintained, but the prospects of profits only hitting the low end of the range is now a real possibility. On the bright side, the company's online businesses kept growing at double-digit rates.