Paddy Power posts 2.5% dip in pre-tax profit

Paddy Power bookmakers recorded a slip in full-year pretax profit today but said trading in the first two months of its current…

Paddy Power bookmakers recorded a slip in full-year pretax profit today but said trading in the first two months of its current year had been satisfactory and that it expected growth in 2006.

The company, which operates nearly 200 betting shops in Ireland and Britain, reported a 2.5 per cent dip in pretax profit to €31.3 million - in line with analysts' forecasts - and said 2005 had been a challenging year.

The company warned in November it was taking a hit from disappointing gross win percentages and poor racing results and expected year operating profit of around €30 million - down from the €38 million then predicted by analysts.

Operating profit fell 3 per cent to €30.1 million while earnings per share dropped 4.4 per cent to 54.08 cents.

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Revenue, meanwhile, rose 18.3 per cent to €1.37 billion.

Paddy Power's total gross win increased nearly 20 per cent to €160.8 million.

Operating profit at the company's online business, which has developed rapidly since it was set up in 2000, increased 92 per cent, accounting for 56 per cent of year earnings.

The company said it had appointed Jack Massey as its new finance director.