Paddy Power Complete First Part of Buyback Scheme
September 5, 2018
Irish bookmaker Paddy Power have revealed that they are well on their way to completing their ambitious buyback scheme. This scheme was announced back in May, where they indicated that a plan was in place to buy back £500 million worth of shares from investors.
The most recent update states that Paddy Power has managed to repurchase £200 million from investors, and already have plans in place to get the remaining £300 million.
The initial £200 million was purchased by their broker Goldman Sachs, while reports from the London and Irish stock exchanges revealed that the Irish firm Goodbody had already acquired over 44,000 ordinary shares.
It was found that this purchase from Goodbody was part of the second portion of £300 million. They will be overseeing the rest of this purchase to ensure Paddy Power completes the buyback scheme.
The company has also published reports detailing a year-on-year revenue increase in the region of 5%, taking the total earnings to £867 million for the first six months of 2018. They experienced the most growth after April as all operating divisions of the company saw revenue growth.
This report also revealed that their online divisions experienced a revenue increase of 13% with retail growth lagging behind at 6%. Paddy Power saw substantial growth in both Australia and the US, thanks to their brands Sportsbet, and the recently acquired FanDuel.
Paddy Power completed a $465 million takeover of FanDuel in July, and in related news, the former CEO has filed a lawsuit against the company. He claims they purposely undervalued the company, due to the fact that the PASPA law repeal was not taking into account.
This repeal lifted the ban on sports betting in the US in May, which FanDuel’s ex-CEO claims would drastically increase the value of the company. They’re currently seeking $120 million in compensation from Paddy Power.