Bookmaker Paddy Power today announced operating profits in the first half of 2003 will be €4 million short of expectations.
It attributed the figures to a record number of favourites at Cheltenham combined with a poor Grand National.
In a trading statement this morning, Paddy Power also said that 2003 started strongly.
"As there has been no fundamental change in the underlying trading or risk profiles, the board expects average gross margins to come within their normal range for the year as a whole, albeit at the lower end of that range," it said.
In Ireland, two betting offices have been opened since the start of the year, together with three relocations. In Britain, two shops have been opened, one new licence has been awarded, and five licence hearings are scheduled within the next three weeks.
A further six new licenses applications have been made. Customer acquisition levels on the telephone and online channels continue to meet expectations, it added.