 reported a slowdown in profits for the second quarter of 2017, partially due to a lack of football sporting events.){kind=link}
Paddy Power Betfair group (LON:PPB) reported a slowdown in profits for the second quarter of 2017, partially due to a lack of football sporting events.
The betting group saw shares tumble after posting a fall in revenue growth, down to 9 percent from 18 percent in the same period a year earlier.
Revenue for the first half of the year totalled £827 million, including a £40 million surplus as a result of pound weakness since the Brexit vote, which boosted overseas sales.
The slowdown was attributed to a weaker half of the second quarter, with customers placing successful bets on favourites across April and May in both the Premier League and Champions League football, and at events such as the US Masters.
Conversely, during the first quarter revenue increased by 23 percent with more favourable sporting outcomes, particularly at Cheltenham Festival. Across the period, underlying earnings increased by 21 percent to £220 million.
This follows a plunge in the company’s shares on Monday, following the surprise announcement of the departure of the group’s chief executive Breon Corcoran.
The company announced that Corcoran is set to be replaced by Peter Jackson, a non-executive director at the firm and chief executive of the UK-based Worldpay business.
“Breon [Corcoran] will continue to lead the group in the meantime, completing the integration of the Paddy Power and Betfair businesses, and ensuring the delivery of an orderly transition,” the company stated.
The company said they would update investors on the exact date of Corcoran’s departure in due course.
With regards to future development, outgoing chief executive Corcoran noted that the company is continuing to invest in order to strengthen its position within a “highly competitive market”.
“Our customers and shareholders are already seeing benefits from efficiencies and investments. In the first half alone, customers enjoyed approximately £30m of extra value through better odds, more generous offers and new loyalty benefits,” he commented.
Shares in the company are currently down 3.68 percent as of 15.54PM (GMT).