SBC News Voice of the Sports Betting Industry
Tuesday morning will see the first joint publication of Paddy Power Betfair results, as FTSE analysts and commentators eagerly await the performance update of online betting’ biggest market capital operator.
Having opened trading with a £105 share price on the London and Dublin stock exchanges on 2 February, Paddy Power Betfair entered the prestigious FTSE 100 index last week having gained a market valuation of £8 billion.
Business analysts have been left unsurprised by Paddy Power Betfair short term share price surge and high valuation.
Last week the FTSE 100 newest enterprise received numerous buy recommendations as market commentators pointed towards the operator’s enviable upscale.
Market insiders further detailed that in the heavily saturated UK betting sector, Paddy Power Betfair had the best prospects of expanding its business portfolio internationally.
The newly formed company has been further buoyed by reports of minimal overlap in its merged customer base, with just a 3% of cross-over in UK punters who use the services of both businesses.
To date, Paddy Power Betfair has served positive early indicators of its performance and merged corporate value. This has helped the operator’s governance which had outlined in its merger prospectus a combined £50 million in short-term synergy cost savings.
Planning ahead, industry commentators will want to asses whether the company can maintain its growth momentum in vastly changed betting sector, that will see the operator compete against newly formed giants in GVC-bwin.party, Amaya Inc and Ladbrokes-Coral (currently under merger proposal).
