Paddy Power grows as punters shrug off weak economy

By Andras Gergely

DUBLIN (Reuters) - Irish bookmaker Paddy Power expects a 14 percent jump in profit this year and a further rise in 2009, showing how resilient betting firms could prove as the economy slows in Britain and Ireland.

"So far the economy has not driven our business back," Chief Executive Patrick Kennedy told reporters.

The average size of stake wagered in Ireland and Britain so far this year, Paddy Power's main measure of consumer confidence, has been ahead of last year, Kennedy said.

"I wouldn't say we're insulated (from economic slowdown). To date the experience has been fine, but we are watching it very carefully," Kennedy said after the company's annual shareholders' meeting.

Shares in Paddy Power rose almost 7 percent to their highest level this year after it predicted operating profit this year of about 82 million euros (65.2 million pounds), up 14 percent from 2007 and 8 percent above what it said was the consensus forecast.

The company said it had seen satisfactory sales growth so far in 2008, while a continued run of favourable sports results had also helped lift profits.

"We can't make an assumption that in 2009 the ball will continue to bounce our way as it has done," Kennedy said, adding that he nonetheless expected further profit growth.

NCB analyst Neil Glynn said the resilience of gambling firms in the face of economic downturn was likely to be reflected in UK peer Ladbrokes Plc's trading statement on Friday.