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Bookmaker Paddy Power said it is on target to report annual operating profit in line with analysts' estimates provided results from sports events are “normal” during the rest of the year.

Profit of about €75 million ($94 million) on a so- called underlying basis would represent per-share earnings growth of 10 per cent, the company said today in a statement.

The amount staked by clients at the online and telephone betting units rose 13 per cent from a year earlier in constant currencies in the 19 weeks to November 10th. “adverse” sporting results reported in August recovered later in the period, Paddy Power said.

The bookmaker said in August it was affected as Irish customers' local favourites succeeded and deterioration in the UK and Irish economies reduced bets.

The recent recovery in results was partially offset by “unusually high racing cancellations'' in September, particularly in Irish racing. “As flagged in August, the deteriorating economic conditions in Ireland and the UK are having an effect on the Group,'' Paddy Power said.

“We continue to respond by providing stand out value and tightly managing our costs.”

The amount staked in betting shops fell 9 per cent in both Ireland and the UK during October, when race cancellations were insignificant. Winnings from gaming machines in the UK rose 22 per cent in constant currencies.

Ireland became the first euro-region country to enter a recession this year as the local property market slumped.
The UK economy shrank in the third quarter, and the Bank of England cut its benchmark interest rate by a third last week to the lowest since 1955 to help revive growth.

Paddy Power was created by the 1988 merger of three bookmakers and expanded beyond Ireland in 2000, when it first bought a UK outlet.