A few months after the merger that led to the establishment of Paddy Power Betfair, the company is about to release information about its financial performance during H1 of the year. The report that is to be released on August 24th is greatly anticipated by market analysts and investors. The two betting giants joined forces in February and started trading on the Irish and London stock exchanges.
Since February key company executives stepped down from their positions including Andy McCue, who used to be Paddy’s Chief Executive.
The maiden interim results that are to be released the upcoming Wednesday are expected to provide market analysts with guidelines about the future of Paddy Power Betfair as the numbers posted will determine the pace at which the company would continue to develop.
Davy Stockbrokers released a note in which explains that the announcement for company’s financial results will be closely monitored not only because it will provide analysts with insights about the future strategies, but also because it will give them with an update related to the synergies, the impact of the changes in the management and the overall integration process.
Back in April, Paddy Power Betfair released a trading update and reassured the interested parties that the integration process was going according to plan.
Davy remains optimistic about the soon-to-be-published financial results. Paddy Power Betfair merger is expected to lead to higher cost savings in a long term. It is also expected to achieve positive operational gearing in the next few years and develop technology that would make the company a self-sufficient in the long run.
According to Davy’s analysts, Paddy Power should report strong growth of online gambling activities in Paddy’s Australian operations and Betfair’s US ones. Expectations are generated EBITDA for Q2 of the year to be at least £120.4 million. Summer months were pretty busy, especially during the “bookie-friendly” Euro 2016, which made analysts hopeful that Paddy Power Betfair will post improved revenues and earnings.
Davy Stockbrokers’ analysts released a joint report related to Paddy Power Betfair H1 performance and emphasized that the 7-month period since the deal was closed was enough for posting stable revenues. They also noted that there is a chance Paddy Power Betfair to exceed their expectations as far as projected savings were concerned and added that they consider the £50 million synergies a bit conservative.
- Author
Olivia Cole
