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.
Breaking News BETFAIR Merging with Paddy Power
..well you didnt need a crystal ball to see that coming..nice hol planned for easter somewhere!PeterLe wrote:Yep no doubt Breon got some more share options for doing a 'good job'
http://www.financial-market-news.com/pa ... ck/947278/
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.
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.
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I can't disagree with much if anything he has said there.
Thanks for posting it.
Thanks for posting it.
- bennyboy351
- Posts: 332
- Joined: Sat Jun 07, 2014 6:01 pm
- Location: West Midlands, England.
I wonder why?................
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- Posts: 4619
- Joined: Wed Mar 25, 2009 12:23 pm
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/
http://www.investegate.co.uk/paddy-powe ... 00026406Y/
The corporate governance at Betfair is shocking.
18-5-16
http://www.morningstar.co.uk/uk/news/AN ... eport.aspx
17-07-15
https://www.theguardian.com/business/20 ... llo-payout
04-09-14
https://www.theguardian.com/business/20 ... tive-bonus
18-5-16
http://www.morningstar.co.uk/uk/news/AN ... eport.aspx
17-07-15
https://www.theguardian.com/business/20 ... llo-payout
04-09-14
https://www.theguardian.com/business/20 ... tive-bonus
Trading statement, but little useful information in it.
http://otp.investis.com/clients/uk/padd ... sid=838518
http://otp.investis.com/clients/uk/padd ... sid=838518