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Merger Costs See Paddy Power Betfair Slump to a Loss

Gambling giant Paddy Power Betfair announced a £47.5 million loss in the first-half of 2016 causing shares in the company to fall 2.6 percent to £96.90 per share.

The company made a profit of £106.5 million a year earlier, but the cost of the merger between Paddy Power and Betfair weighed in at £195.1 million, of which £29 million was associated with advisory fees.

Although Paddy Power Betfair recorded a loss, the rest of its financial figures were positive, and the company is in excellent health.

Its sportsbook stakes increased 21 percent, total net revenue increased by 18 percent to £759 million, gross profit soared by 19 percent to £584 million, and underlying operating profit stood at £147.