Paddy Power Betfair to post first results following merger
Interim announcement will be closely watched as investors look for more specifics
The Paddy Power Handicap Chase at Cheltenham, 2015: the bookmaker and betting exchange merged in February 2016. Photograph: Harry Trump/Getty Images
Paddy Power Betfair will report its first set of interim results as a merged entity on Wednesday.
The bookmaker and betting exchange merged in early February to create one of the world’s biggest gambling businesses, with turnover of about €2 billion and a stock market value of €10 billion.
One of the deal’s aims was to deliver savings of £50 million (€62 million) a year, part of which will come from cutting 650 jobs from the overall group’s workforce of 7,200.
Davy Stockbrokers said the results announcement this week will be closely watched, not least because investors will be looking for more specifics around future strategy, an update on achievable synergies, and comfort that business momentum has not been unduly impacted by integration work and management changes.
Davy is predicting a first-half Ebitda forecast of £179.5 million, representing growth of 30 per cent year-on-year on the back of revenue growth of 16 per cent.
“We see good scope for Paddy Power Betfair to achieve market share gains and positive operational gearing in the coming years, and believe that this can be achieved while developing technology that will allow the group to become more flexible and self-sufficient over time,” Davy analyst David Jennings said.