Punters dream run hits bookies' earnings

Punters dream run hits bookies' earnings

	Published : Fri, 18 Nov 2005 17:05 By : James Rowe Print this Story

A dream run for the punters at horserace meetings have badly hit the revenues of three of the largest bookies in the UK and Ireland.

Ladbrokes, Paddy Power and William Hill saw their share prices fall on Thursday. Dublin-based Paddy Power’s shares fell 22 per cent after it announced that its 2005 results would now be 17 per cent down on expectations. William Hill's shares fell 4 per cent, while Ladbrokes' shed 1 per cent of its stock.

Paddy Power said poor racing results in the last three weeks had erased £2.7 million off its gross win estimates. The operating profits for the year to December 31 would now be about £20 million, around £3.5 million below analysts' expectations.

Investors also raised concerns about the longer-term structural changes to the Irish betting market. Support is growing in Ireland to have tax-free betting in the country. It is being expected that it could be announced in the budget next month.

“The Irish retail market is seeing structural change and is becoming more competitive. But the top line is that we are as bullish as ever,” said Paddy Power's finance director, Ross Ivers. The shares fell by 22 per cent to close at €10.38.

William Hill and Ladbroke’s parents Hilton suffered losses which were minor in magnitude when compared to that of Paddy Power. William Hill’s shares closed down 511 pence, down by 4 per cent. Hilton saw its shares plunge by just 3 pence at 336 pence.

Hilton's spokesman said: “The punters have had a good run but it is only to be expected. If the punters never win then we would not have a business.”

William Hill said it suffered from both horse races and football matches. David Harding, its chief executive, said: “You do get these runs of negative results and the market knows this. But if you think betting on Chelsea to win is just taking money then I'll take as much as you want. But be careful, one day you'll lose the mortgage."