Paddy Power Betfair to rename itself

Paddy Power Betfair is planning to change its group name, as the company recorded an 11 per cent dip in profits after ramping up investment in its fledgling US sports betting business.

The company will be submitting the proposal at its annual general meeting (AGM) in May for a change to Flutter Entertainment to reflect its “increasing diversity”, although it stressed this would not affect consumer brands.

Details of the proposal came as Paddy Power reported pre-tax profits of £219 million for 2018, down from £247 million in 2017.

The group said revenues rose 7.3 per cent to £1.87 billion, but profits were hit by £24 million of spending on the US division, where it is looking to take advantage of the recently opened sports betting market.

Underlying earnings stripping out the US investment remained flat at £475 million—up 2 per cent excluding currency effects.

Paddy Power Betfair chief executive Peter Jackson said the group had “regained its mojo” after beginning to regain its market share in the UK last year, following several years of share losses.

But he added that it had been a “challenging year for the sector with regulatory and tax changes.”

On the name change, he said: “With a growing portfolio of brands, we plan to rename the group as Flutter Entertainment plc.”

“There are no plans to use this historical name for consumers, and we will seek shareholders’ permission for the change at our forthcoming AGM.”

The group insisted the new £2 stake limit for controversial fixed-odds betting terminals (FOBTs), which comes into effect on 1 April 2019, will not have a material impact on its sports-led retail strategy.