Bookmaker Paddy Power Stock Drops on $6 Million Trump Election Hit - TheStreet

Paddy Power Betfair (PDYPY) stock fell more than 2% in the first hour of trading in London Monday after the bookmaker revealed it took a hit on President Donald Trump's surprise election victory.

The company said fourth-quarter earnings were impacted by Trump's victory in early November, which cost the company almost £5 million ($6.21 million), and also reported "customer friendly" results in its European sportsbook, losing money on soccer bets in December.

"We estimate that the impact on group revenue from the customer friendly results, before any benefit from the re-cycling of winnings, was approximately £40 million in the quarter," the company said in a trading statement.

Shares were down 1.5% at 8,515 pence by 09:00 GMT, extending their 52-week loss to around 9.1%.

Paddy Power Betfair now expects full-year group underlying Ebitda to be around the mid-point of the previous guided range of £390 million to £405 million.

In late October, the betting company paid out more than $1 million to customers backing Hillary Clinton. "Recent betting trends have shown one way traffic for Hillary and punters seemed to have called it 100 per cent correct," the bookmaker said at the time.

"Despite Trump's Make America Great Again message appealing to many disillusioned voters, it looks as though America are going to put a woman in the White House."

Paddy Power spoke too soon and closer to the election warned it was concerned about a surprise Trump win.