Bookmaker Paddy Power said today its first-half operating profit more than doubled thanks to a string of sporting results that went its way.
Operating profit for the six months to the end of June rose to €40.8 million ($55.6 million) from €19.6 million a year earlier, beating an average forecast of €36.1 million in a Reuters poll of analysts.
Profits at its Irish betting shops more than doubled to €22.5 million with online profits growing 53 per cent to €14.8 million, and telephone profits rising 27 per cent to €4 million. Paddy Power also said its UK shops made a trading profit for the first time.
Paddy Power said it now expected operating profit for the full year to reach about €68 million versus previous guidance of €62 million, which was already an increase on the €58 million initially expected for 2007.
Chief financial officer Jack Massey pointed to horse racing results such as outsider Silver Birch's Grand National win in April and relatively few Irish winners at March's Cheltenham Festival as examples of results that worked in Paddy Power's favour.
"We had the usually infallible Tiger Woods disappointing the punters and pleasing the bookies as well," he added.
Turnover in the period, as measured by the amount of money customers staked with Paddy Power, was in line with expectations, rising 13 per cent to €994 million.
Shares in Paddy Power have been the second best performing Irish stock so far in 2007, rising 47 per cent since the start of the year and beaten only by ferry operator Irish Continental Group, which is the subject of a prolonged takeover battle.
That compares with a 10 per cent fall for the Irish market so far this year.