Paddy bets on IOM

This summer’s miserable weather and a move to the Isle of Man have helped bookmaker Paddy Power generate a doubling of first-half profits.

The company said on Tuesday that wet ground disrupted the form of the best-known horses at many race meetings, limiting pay-outs to punters.

In the wake of Cheltenham and other race meetings where the bookmakers cleaned up, Paddy Power has already twice upgraded its earnings guidance in recent months.

Brokers on Tuesday issued further upgrades, encouraged by progress the UK retail business appears to be making, and the announcement that the company expects to reduce its tax bill by €5m as a result of moving certain online activities to the Isle of Man.

Pre-tax profits for the six months to June 30 increased from €20.5m to €42.7m (£29m), including the first trading profit from its operation in the UK, in which it has opened 59 shops since 2002.

The gross win, also sometimes called customer losses, was unusually high at 14.7 per cent of turnover in its sporting book, up from 12 per cent last year.

Despite this, the amounts that were placed as bets either in Paddy Power shops or over the telephone or online increased 13 per cent from €878m to €994m.