Paddy Power and Betfair owner Flutter took a tumble as successful bets from customers pushed it into a loss.
Shares in the gambling giant slumped 12.4 per cent, or 1339p, to 9456p after it posted a £288million loss for 2021 compared to a £1million profit the previous year.
It blamed an ‘unprecedented’ run of customer-friendly sports results during the year, which cost the group’s UK and Irish business £232million – including £149million in the fourth quarter alone.
Losing streak: Shares in Paddy Power and Betfair owner Flutter slumped xxpc or xxp to xxp after it posted a £288m loss for 2021 compared to a £1m profit the previous year
The bumper winnings included one week in October when 15 out of 16 favourites won matches in football’s Champions League.
Despite this, trading in the first weeks of 2022 had been ‘in line’ with the group’s expectations.
The underwhelming results followed news on Monday that Flutter would be linking up to 10 per cent of its annual bonuses to efforts to curb gambling addiction.
Interactive Investor’s head of markets Richard Hunter warned regulation ‘looms large’. ‘Affordability checks and the ongoing Government review of the Gambling Act could well prove thorns in the side for the sector,’ he said.
‘The gaming industry is a traditionally easy target for authorities needing to raise taxes and this could become a focus as governments look to repair their bruised financial positions.’
Flutter rival 888 also sank, by 10.5 per cent, or 25.4p, to 216.8p, after it was fined £9.4million by regulators.
The FTSE 100 was down 1.7 per cent, or 128.05 points, at 7330.2 while the FTSE 250 slumped 2.8 per cent, or 580.41 points, to 20,500.64.
Stock Watch – FD Technologies
FD Technologies surged higher after signing a partnership with Microsoft.
The software group will work with the tech giant to expand the reach of its KX Insights data analysis platform, which will be integrated into Microsoft’s Azure cloud computing service.
FD will generate revenues based on the use of KX on Azure, and work with Microsoft to develop services and applications using KX’s capabilities. Its shares soared 27.1 per cent, or 412p, to 1930p.
A rash of companies cutting ties with Russia as the West tightens sanctions once again prompted heavy selling. Brent crude oil prices climbed to above $103 a barrel amid worries over disruption to fuel supplies.
While a decision to exit their Russian interests hit Shell (down 1.1 per cent, or 21p, to 1951p) and BP (down 1.8 per cent, or 6.45p, at 357.1p), the surging cost of crude was a boon for smaller energy firms with Harbour Energy climbing 1.4 per cent, or 5.4p, to 403.6p.
But gas producer Energean fell 0.4 per cent, or 4p, to 1034p as prices of UK natural gas continued to rise.
Pharma giant AstraZeneca gained 1.8 per cent, or 165p, to 9224p after its rare disease arm, Alexion, inked a development deal with Swiss group Neurimmune to develop, manufacture and sell a potential treatment for a condition that causes heart failure.
There were also developments at rival GlaxoSmithKline, which applied to European regulators for permission to market a treatment for anaemia caused by chronic kidney disease. The shares slipped 0.03 per cent, or 0.4p, to 1545p.
Reach, the owner of the Daily Mirror and Express newspapers, fell 25.7 per cent, or 58.5p, to 169p after it warned that rising inflation was pushing up its printing costs as it battled higher energy prices and supply chain disruption.
Builders merchant Travis Perkins saw profits more than double to £353million last year from £128million in 2020 as Britain’s housing market boomed on the back of surging demand.
But the shares dropped 4.7 per cent or 69p, to 1392.5p as it noted ‘challenges around inflation and product availability’.
Revolution Bars Group bounced up 5 per cent, or 1p, to 21p as it cheered a return to profit. The chain posted a pre-tax profit of £4.3million for the six months to January 1, swinging from a £17.7million loss in the same period a year ago.
Elsewhere, investment manager Man Group added 0.1 per cent, or 0.25p, to 192.75p after it cut back its exposure to the collapsing Russian stock market.
It reported a 20 per cent rise in assets under management to £111billion in 2021 while profits jumped to £491million from £212million in 2020.
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