It has not been a good start to the year for Paddy Power, for thanks to a series of very large winning payouts awarded to their betting customers this Irish Bookmaking company has seen a 14% overall decrease in their profits which has seen them making just €60.1m which equates to £47.8m in profits for the first 6 months of 2014.
In fact an official comment by Paddy Power said that those large winning payouts has been more expansive that the latest divorce of John Cleese, one part of the world famous Monty Python cast, comments like this are to be expected from Paddy Power who are always famed for their unusual advertising gimmicks and unusual self promotion tactics!
Being a betting and gambling related company Paddy Power are always going to be at the mercy of results in sporting fixtures and events where the favourites win more than they lose, and football results so far this year has been partly to blame for a £27 million loss in that betting sector and also favourites winning more horse races than they usually do.
The average number of favourites that win horse races is 35% however this rose to 37% during the first six months of the year which whilst this certainly kept their army of punters happy it had the knock on effect of massively marking down profits on those races.
In fact during January through to March of this year out of the 21 most wagered on football matches 17 of those matches resulted in the favourite team winning, and with Paddy Power always promoting their football betting markets and having a large number of football betting customers this caused that betting market to become unbalanced with them paying out much more over this three month period than they usually do.
This poor set of results indicated in the Paddy Power interim report saw their shares drop in value by 0.5p to 49p, however the interim dividend declared has increased by 11% equating to each share dividend being 50 cents.
If you are interested in placing Binary Options trades on Paddy Power or any of the other companies involved in this market sector such as Ladbrokes or William Hill, then you do need to be aware that bookmakers do not always win on individual betting markets such as horse racing and football, however when you combine all of their betting markets they do tend to continually make profits each year.
One aspect of a recent change in the tax regime in the UK sees the gaming tax levied on the gaming machines known as FOBT’s which most if not all betting shops have four of in each shop premises, being increased, and this is going to possible make a dent in the profits being announced further on in the year by all major betting companies who operate land based betting shops throughout Great Britain. However recession or no recession betting is one industry that is always popular!
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