Paddy Power issues profit warning

Paddy Power is Ireland's largest bookmaker

Irish bookmaker Paddy Power has issued a profit warning, blaming a run of unfavourable sporting results and the wider downturn in consumer spending.

The company now expects to make an operating profit of 75m euros ($110m; £60m) in 2008, down from its previous guidance of 82m euros.

It said 4-5m euros of the reduction was due to big payouts, including bets on Irish golfer Padraig Harrington.

Reduced betting business in the UK and Ireland will cut a further 2-3m euros.

Slowing growth

The performance of the Irish and UK economies has deteriorated Patrick Kennedy, Paddy Power chief executive View Paddy Power shares

"Much has happened since our last trading update three and a half months ago," said chief executive Patrick Kennedy.

"The performance of the Irish and UK economies has deteriorated, and the growth rates in our businesses have slowed accordingly."

Paddy Power also said it had been hit by a number of heavily-backed wins for horses trained by popular Irish trainer Aiden O'Brien.

Shares in Paddy Power were down 8% to 14.78 euros in early Wednesday trading.