SBC News Voice of the Sports Betting Industry
City analysts are eagerly awaiting Paddy Power Betfair’s (PPB) H1 2016 financial update on Wednesday 24 August, as the newly listed FTSE operator updates the market and its investor on merger progress.
Close attention will be paid to PPB’s ongoing convergence strategy, as the company has undertaken a series of restructures to its marketing and operational divisions with PPB governance aiming to hit its £50 million ‘shared-synergies’ target within the first three years of its post-merger.
In its May 2016 Q1 update, PPB would declare corporate earnings of £40 million despite being impacted by a £20 million Cheltenham Festival payout.
Following a busy summer period which featured a ‘bookie-friendly’ Euro 2016, industry analysts are positive of improved revenues and earnings results for PPB’s merged operations.
However, concerns have been drawn towards the operator’s results being impacted by a weak GBP £ currency exchange rate against the € Euro.
Issuing a note Irish financial advisory Davy Group commented on PPB’s forecast
“We believe that the announcement will be closely watched, not least because investors will be looking for more specifics around future strategy; an update on achievable synergies; and comfort that business momentum has not been unduly impacted by integration work and management changes,”
