Paddy Power Share Discussion Threads

[deanf123] 20/12/2004 10:12

LSE:ICGC -have the same issue...

[rcturner2] 20/12/2004 09:56

haha what a balls up

[channy1982] 20/12/2004 09:21

has someone tried to buy it?

[channy1982] 20/12/2004 09:20

thats the price my broker is telling me- although it has to be a telephone order

[sugarbee] 20/12/2004 08:50

advfn r pricing in euros @ 10.55, not pennies.

[tyranosaurus] 20/12/2004 08:36

They are quoting the 0.1 Euro shares as 10.6 euros.
That equates to £7 odd in real money.

Well Done ADVFN

[1jags] 20/12/2004 08:33

do u have a position?

[rcturner2] 20/12/2004 08:25

Can anyone explain what has happened to the share price of this company?

[m.t.glass] 06/12/2004 00:44

Some Sunday Times readers tell me the PAP item only appears in some editions (apparently WKP in others).

[m.t.glass] 05/12/2004 01:20

Sunday Times
December 05, 2004

Judgment Day: Should you buy shares in Paddy Power?
Odds-on favourite to stay the distance


FOUNDED in 1988, Paddy Power is Ireland’s biggest firm of bookmakers, operating from more than 140 outlets in Ireland and 26 shops in London. These account for about 62% of its annual turnover with its burgeoning telephone and internet betting comprising about 19% each.
Turnover for the six months ended June 30, 2004, increased by 22.2% to €554.1m while its pre-tax profits increased by 158% to €18.7m. The company’s shares have had a strong run this year, rising by more than 50% to €10.88. It now has a market capitalisation of €544m.



The two experts below have been selected for their skills in several investment areas. They, or the funds they manage, may hold shares in the companies or sectors discussed.

Kevin McConnell, head of equity research, Bloxham Stockbrokers


STRONG earnings momentum and a solid, differentiated business model are the main drivers behind the Paddy Power growth story. Despite a considerable re-rating over the past 12 months and a premium valuation relative to its British peer group, we continue to believe that these drivers will support further share price upside over the longer term.

Although the bookmaking industry is subject to the inherent risk of short-term fluctuations in operating performance, Paddy Power has developed a strong track record. Supported by robust cash-flow generation and a solid balance sheet we expect the company to continue delivering on its organic growth potential. The group continues to reinforce its dominant domestic position while also expanding into the attractive British market where brand awareness is estimated to be more than 55%. The group last year introduced a dedicated management team in Britain and this should provide for greater focus and improved execution of the expansion strategy going forward.

Expansion of the retail estate will underpin growth going forward, while the group is also targeting significant volume expansion via non-retail infrastructure, particularly its website. The introduction of an online casino in March further expands the group’s offering in this regard.

Paddy Power is developing excellent earnings momentum and although the unusually strong interim gross win percentage is unlikely to be maintained for the full year, consensus expectations are for more than 50% earnings growth this year.

Trading at 18 times 2005 earnings, the premium valuation may appear excessive, but it is our view that the group’s solid business model and strong earnings growth potential justifies a premium rating.



Judgment: buy on weakness

Neil Osborne, equity fund manager, Davy Private Clients


PADDY POWER posted a very positive set of interim results in September, driven by volume growth across all three traditional channels and buoyed considerably by favourable sporting results. The company’s recently launched online casino also made a contribution of €1m to operating profits and this channel, which effectively generates 100% margin, is forecast to grow strongly.

Paddy Power’s strategy of appealing to the mass-market, entertainment-driven punter, who is less price-sensitive, has proved to be a big success in Ireland and a huge growth opportunity exists in transporting this formula into the burgeoning UK gambling market.
The roll-out of the licensed betting office estate in clusters across London is continuing in a measured manner. We estimate that about 25% brand loyalty exists in Britain and that there is a sizeable opportunity for Paddy Power to leverage its niche brand in the deregulated British market, which is 10 times the size of Ireland’s.

Given the high operational leverage of the online offering, much of the firm’s growth will come from establishing critical mass across this channel. Additional growth will come from the continued roll-out of fixed-odds betting terminals in Britain and the launch of additional peer-to-peer games such as online poker.

The shares have risen by 50% this year and the company now trades at a sizeable valuation premium to its peers.

We like the stock longer term but would advise caution as we think industry gross win percentages will trend downward toward mean levels over the next six months. Recent evidence from Ladbrokes and Stanley suggest this may already be occurring given recent punter-friendly soccer results. This may present investors with a more attractive buying opportunity in the future.


Judgment: buy at €10

THE FIRM AT A GLANCE

Share price: €10.88
Market value: €544m
Year end: December 2005
Forecast profits: €38.6m
Forecast dividend: 13.2c

Leading shareholders: FMR Corp 11.9%, David Power 10.4%, John Corcoran 5.4%, Merrill Lynch Investment Managers 5.1%

[m.t.glass] 10/11/2004 13:00

Hey this is nice..

[m.t.glass] 28/10/2004 16:24

And ending the day with a flourish ;o)

[m.t.glass] 28/10/2004 12:37

Looking good for a possible close above £7 again. Five of the six MMs have been edging upwards through the day.

[m.t.glass] 28/10/2004 00:37

By Abigail, at OnlineCasinoNews.com USA


Leading Irish bookmaker Paddy Power is set to add a facility for online poker to its site. The already prospering company is looking to expand its offerings and tap into the lucrative and still growing online poker market. The expectation is that the additional area should further boost the revenue earned from the online branch of the company, which is already exceeding targets.

The communications manager for the company said of the plan “Online poker is a logical extension of our current activities. We hope to have it ready in the coming months.” Financial results for the online branch of the company are very strong so far this year. For the first half of the year operating profits were valued at €3.6 million, far exceeding the original forecast of €1.8 million for the entire year. The online casino section of the site is thought to have contributed €1 million of that profit.

These strong figures have been produced before the full expansion of the site into the British market. Paddy Power have been slowly expanding into the British market over the last two years, and will continue to do so. With this expanding of the reach of the site, alongside the expansion of their products, the financial results should continue to be strong for Paddy Power

--------------------------------------------------------


Meanwhile.. from the website at



Marketing: the Paddy Power difference

Paddy Power takes a unique approach when promoting its brand and services. This is because the company believes that it operates within the entertainment business. This unconventional concept of betting as means of adding entertainment while following a sporting or non-sporting event is the creative platform that supports all Paddy Power communication. Paddy Power advertising, whether tactical or brand-focused, consistently reflects a sense of fun and irreverence, which lies at the centre of the company's brand.





See other past promotional images at


PS: That zebra/zimmer advert, attacked by the ASA as "tasteless, and too cruel" was devised by Reg Starkey, aged 64.

[m.t.glass] 26/10/2004 07:31

Share price has doubled in 18 months, and trebled in the past 3 years. Up 40% so far this year. (Same stats as NWF)
Grew 47.5% in 2001,
32.4% in 2002,
54.4% in 2003.

[m.t.glass] 26/10/2004 07:27

Paddy Power to Offer Online Poker
25 October 2004

IRELAND – As reported by the (Ireland) Sunday Business Post: "Bookmaker Paddy Power is set to offer online poker as part of the company's expansion of its internet activities which are becoming increasingly profitable for the Irish company.

"An online poker facility, which would match up players with other users online in a real live game, is expected to be available by the end of the year or early in 2005.

"…The availability of poker should help boost revenues at Paddy Power's online division, which is already exceeding targets…"

(CasinoCityTimes.com, 25 Oct)
------------------------------------------------------------------

and a few days earlier:

Paddy Power shares soar on new UK law
Bizworld, Tuesday, October 19 17:30:38

"...Shares in Irish bookmaker, Paddy Power, jumped 15c to 997 on the Irish Stock Exchange after the UK Government brought in sweeping new gambling laws... ..Paddy power will also likely welcome news that the new law will allow racecourse betting on Good Friday and Christmas Day for the first time..."



(I hold an interest in PAP)

[timmysteele] 27/8/2004 17:11

the board seems a little quiet for this stock does anybody know how the results going and are we going to see a rise on monday

[nwmadden] 29/5/2004 11:19

£25 gift for each paddypower online casino customer recently for filling in a 1 minute survey. 25 x £1 hands of Blackjack (1% house edge) later, the money becomes withdrawable and both my partner and I are £25 quid richer thanks to Paddy Power.

How many shares would I need to earn £50 worth of dividend? Never played another online casino that has so blatently gave me free money. Ok, so they got a tiny bit of market research out of me and by giving money away like this they may be expanding their user base, but are you sure this lot are ready to be decsended on by the tens of thousands of savvy online gaming site users that have built up to take advantage of weak terms and conditions like Paddy Power currently have?

There should have been far more restrictive conditions on the withdrawal of that £25 gift, as the terms and conditions stand at the moment it's virtually being given away.

[wantsabuck] 23/3/2004 22:02

The Chinese have been very keen on gambling and betting for many centuries. If PAP can get over the cultural barriers, the business will be an excellent 'take away' for investors.

[zapa] 31/7/2003 10:06

We are now doing it in Chinese.

Chinese customers now being targeted.

[zapa] 17/7/2003 17:41

I dont understand it either.I guess some need to be led by the titpsters,well when they do I for one will already be there.

[shortmemory] 17/7/2003 08:35

ANYONE OUT THERE?

Excellent cash flow, steady expansion, sound accounts, no borrowing? Solid management team BUT NO INTEREST!!!

Forgot to add, 3.5% divi last year, and set to increase.

I must have missed the downside. What/Where is it? HELP!


shortmemory