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FTSE 100 rises but Paddy Power Betfair shares fall | FTSE 100 rises but Paddy Power Betfair shares fall |
(about 3 hours later) | |
Shares in Paddy Power Betfair fell more than 5% despite the bookmaker reporting rising revenues and underlying profits. | |
Revenues rose 18% to £1.55bn last year, with underlying operating profit jumping 44% to £330m. | Revenues rose 18% to £1.55bn last year, with underlying operating profit jumping 44% to £330m. |
But after the costs of last year's merger between Paddy Power and Betfair were taken into account the company reported a loss of £5.7m. | |
Analysts at Liberum said the company's performance in the final quarter of 2016 had been "disappointing". | |
"It seems likely that operational challenges will continue around the performance of cross-sell to sports customers and the investment required to stimulate growth," Liberum said in a research note. | |
Despite Paddy Power's fall, the wider market was higher, with the FTSE 100 index up 6.44 points at 7,356.56 shortly after midday. | |
"Markets remain becalmed for yet another day, hampered by a lack of data and a general wariness ahead of the ECB [European Central Bank] on Thursday, NFPs [US employment figures] on Friday and a Fed meeting next week," said Chris Beauchamp, chief market analyst at IG. | |
Shares in Direct Line fell 2.9% after the insurer reported a fall in full-year profits due to changes in the way that compensation payments are to be calculated. | |
Pre-tax profits fell 30% to £353m, with changes to the payment formula cutting profits by £217m. | |
In the FTSE 250, shares in Aggreko sank 11% after the temporary power provider said it expected profits to fall this year. | |
On the currency markets, the pound fell 0.4% against the US dollar to $1.2188 and was also 0.4% lower against the euro at 1.1526 euros. |