Paddy Power Betfair said that the "lack of a major football tournament" and unfavorable sports results "were to blame for a slowdown in growth in the first half of the year," according to Angela Monaghan of the London GUARDIAN. Shares in the betting group "fell sharply for a second day, after the bookmaker surprised investors on Monday" with the revelation that Breon Corcoran resigned as CEO. The company was "the biggest faller on the FTSE 100 on Tuesday," down 5%, after it revealed revenue growth over the first six months had fallen to 9% from 18% in the same period a year earlier. First-half revenue of £827M ($1.07B) included a £40M ($52M) boost from "the weakness of the pound since the Brexit vote, which flattered overseas sales" (GUARDIAN, 8/8). In London, Murad Ahmed reported underlying EBITDA were up 20% to £220M ($286M). This compares to an 18% rise in interim revenues in '16 and a 31% jump in underlying EBITDA. Analysts signaled concern that the £5B merger between Paddy Power and Betfair, which was completed last year to "create the world’s largest online betting company, was not progressing as smoothly as expected." Overall, the company said that stakes in sports betting were up 9% in the first half of '17 on a constant currency basis to £5.6B ($7.3B). The company also returned to an operating profit of £104M ($135M) over the period, up from a loss of £48M a year earlier "due to costs related to the merger" (FINANCIAL TIMES, 8/8).
