Breaking News BETFAIR Merging with Paddy Power

News, chat and debate about the Betfair betting exchange.
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Dallas
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I got both exchange and sportsbook showing in UK
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Euler
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Location: Bet Angel HQ

Ouch!

Lessons to be learned from failures at Paddy Power: - http://www.gamblingcommission.gov.uk/Pr ... Group.aspx

An operator is set to share lessons with the wider industry and contribute £280,000 to socially responsible causes after failing to keep crime out of gambling and protect vulnerable people.

Richard Watson, Programme Director at the Commission said: “We expect the industry will learn the lessons from this case – it is their duty to keep crime out of gambling and protect vulnerable people from harm. If operators don’t implement processes and policies aimed at doing this then they risk losing their operating licence. Paddy Power failed in its dealing with three customers and is now facing the consequences of these actions in a very public way.”
Details of how Paddy Power failed to meet its anti-money laundering and social responsibility duties are included in the Commission’s public statement.
andyfuller
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:shock:

The public statement makes for interesting reading!

http://www.gamblingcommission.gov.uk/pd ... y-2016.pdf
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LeTiss
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Joined: Fri May 08, 2009 6:04 pm

Absolutely shocking report on Paddy Power

However, they were just operating like every other bookmaker

The truly immoral aspect of this though, is that whilst they are encouraging problem gamblers to reach bankruptcy, any shrewd punter gets restricted to £2 stakes

The bookies are solely responsible for the truly appalling image the industry has
PeterLe
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Joined: Wed Apr 15, 2009 3:19 pm

Sportsbooks doing well! :roll:
No mention of the Exchange nor "Smoke and Mirrors"

http://www.independent.co.uk/news/busin ... 19971.html
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Euler
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Location: Bet Angel HQ

I had a look at the results but given the nature of the beast now it's almost impossible to sensibly analyse.

Costs and revenue will be heavily obscured in the new structure, so you have to rely on the management's interpretation of revenue and costs centres. Difficult to really tell anything about the exchange side of things, especially given the lack of commentary.

TBH, I suspect that's intended.
PeterLe
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Joined: Wed Apr 15, 2009 3:19 pm

Yep no doubt Breon got some more share options for doing a 'good job'
PeterLe
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Joined: Wed Apr 15, 2009 3:19 pm

PeterLe wrote:Yep no doubt Breon got some more share options for doing a 'good job'
..well you didnt need a crystal ball to see that coming..nice hol planned for easter somewhere!

http://www.financial-market-news.com/pa ... ck/947278/
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Euler
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http://www.ft.com/cms/s/0/39419dfc-071a ... z46vAWEYsQ

Betfair Group Plc logos, left, and Paddy Power Plc logos, right, sit on a computer screen in this arranged photograph in London, U.K.©Bloomberg
Paddy Power Betfair had its worst day in a month on Wednesday after Credit Suisse questioned the logic of their £7bn merger.
Credit Suisse started coverage of Paddy Power with an “underperform” rating and £86.50 target price.

“We feel that cost synergies alone are a poor rationale for M&A in a growth industry such as online gaming,” it told clients. “Furthermore, we believe that scale is not as important as many believe and is no indication of potential market share gains.”
The conventional wisdom of bookmakers needing scale is disproved by market share data, which shows that since 2011 the share captured by the top-three UK online sites has shrunk slightly, Credit Suisse said.

While Paddy Power has targeted cutting £50m of costs, deeper operational synergies are likely to underwhelm as industry expenses tend to move in lockstep with revenue growth, it said.

“Both companies already each have a strong management team, good brand, good technology and largely have the geographic exposure that they each felt was appropriate,” said analyst Ed Birkin.

Yet the shares are trading at about 31 times 2016 earnings, meaning that investors have already priced in significantly improved growth from the merger while ignoring integration and regulatory risks, he said.

Paddy Power slid 4.3 per cent to £89.25. The stock had nearly doubled in the six months since August when the companies first announced their all-share merger but has since pared that advance to 58 per cent.
andyfuller
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I can't disagree with much if anything he has said there.

Thanks for posting it.
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Euler
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I got the proxy form for the AGM this week. It's been held in Hammersmith every year since incorporation, this year it's moved to Dublin.
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bennyboy351
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Location: West Midlands, England.

I wonder why?................ :D
andyfuller
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1 in 3 reject the Approval of the Directors' Remuneration Report at the AGM with over 8 million votes withheld as well:

http://www.investegate.co.uk/paddy-powe ... 00026406Y/
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Euler
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Euler
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Trading statement, but little useful information in it.

http://otp.investis.com/clients/uk/padd ... sid=838518
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