Bookies Paddy Power reveal huge cost of Trump's unexpected Presidential victory

Trump v Clinton gamble hurts Paddy Power Betfair profits

Business & Tech Gerry Broome AP Press Association Images

Along with other bookmakers Paddy Power Betfair was hit by a run of punter-friendly football results at the end of the year, including Chelsea's string of victories.

It said, notwithstanding worse than expected gross win margins in November and December, it expects full-year group underlying earnings (EBITDA) to be around the mid-point of its previously guided range of £390mln to £405mln.

Revenue for the three months ended December 31, 2016 totaled £388 million, up 10% from the same period a year earlier.

Sports revenue looks set to increase by 19% year-on-year to £1.12 billion, while gaming revenue should climb 14% to £353 million.

Company growth has been further supported by strong growth in its Australian betting division led by its Sportsbet brand which displayed a revenue growth of 18 % and a 25% rise in wagering.

DONALD TRUMP'S shock U.S. presidential election win cost Paddy Power Betfair £5 million, as the firm revealed their post close trading update results on Monday. The company highlighted revenue increase despite bettor-friendly results and certain "weakness" in its online gaming performance during the fourth quarter of the year. "The impact on profitability of these results was partially offset by lower than expected marketing and staff costs", it said.

"This started with the unexpected USA election outcome, which cost the group nearly £5m, and concluded with our European sportsbooks losing money on football bets in the month of December". For the year as a whole, it grew by 18% to £1.55bn. According to the analyst this now indicates there is a potential increase of 3.35% from Paddy Power Betfair's current price of 8515.

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