Paddy Power lowers earnings guidance as trading worsens

LONDON (Reuters) - Irish bookmaker Paddy Power (PAP.I) lowered its full-year earnings guidance on Wednesday, saying trading had deteriorated in the three and a half months since its last trading update.

The group now expects to make an operating profit for the full year of 75 million euros, compared with its previous guidance of 82 million euros.

"Much has happened since our last trading update three and a half months ago. The performance of the Irish and UK economies has deteriorated, and the growth rates in our businesses have slowed accordingly," said Chief Executive Patrick Kennedy.

Paddy Power reported a 10 percent increase in pretax profit for the six months to end June to 47.1 million euros, but said it had seen a string of unfavourable outcomes since June, including wins by popular Irish golfer Padraig Harrington and good results from Irish horse trainer Aidan O'Brien.

"The old adage of 'what goes around comes around' applies to sporting results, and they certainly have come back around for punters since June, with a string of unfavourable results for bookmakers, and Irish bookmakers particularly," said Kennedy.

Paddy Power said it now expected to make adjusted earnings per share of 1.37 euros in 2008, 4-5 percent below the current consensus forecast.

(Reporting by Matthew Scuffham, editing by Will Waterman)