Poll: What should Peter Jackson’s first priority be at Paddy Power Betfair?
The new man in charge at the London-listed giant faces major questions about gaming and product innovation
Peter Jackson today takes the reins at Paddy Power Betfair, with big shoes to fill in the form of the departing Breon Corcoran.
Jackson steps into the top job with PPB’s momentum stuttering somewhat, with online revenues down 3% in Q3.
Indeed, Morgan Stanley issued a note this morning, cutting its recommendation on the firm to underweight – the first negative view it has since the merger.
Morgan Stanley analyst Ed Young cut his target price 7,500 pence, implying a 14% downside from the current price.
Young said the expectations for a turnaround following the enormous platform migration project “may not materialize.”
PPB shares were down 2% in early trading on Monday.
Excited to wake up in Dublin for my new job @PPBetfair Looking forward to meeting lots of colleagues and customers in the coming days
— Peter Jackson (@jpeterjackson) January 8, 2018
So what should Jackson’s priority be in righting the ship? One place to start could be gaming, where revenues have been flat or declining for several quarters in a row. PPB said recently discussed a gaming-only brand has been discussed “quite a lot”, suggesting Jackson’s first move could be to revive a name like Roller or Flutter.
Another route to fixing gaming could be M&A, with PPB having the balance-sheet firepower to pull of just about any deal it wants. Could the recent GVC-Lads Coral deal prompt Jackson to thrust PPB back into the M&A fray.
Elsewhere the exchange could be a priority, with analyst asking questions recently about several new competitors appearing to pick up steam, while Betfair’s own product has suffered some technical issues. Rivals Matchbook and Smarkets have both inked major horseracing sponsorship in recent months, while Lads Corals’ Betdaq exchange has also seen more of a marketing push.
Finally, Jackson could be well served to focus some attention product innovation, which has fallen some way behind competitors’ thanks to the platform integration project which is now nearing an end. Sportsbook revenue dropped 3% in Q3.
POLL: Paddy Power Betfair's new CEO, Peter Jackson, starts today. What should his priority be? https://t.co/eiQBN01x2l
— EGR Global (@EGRIntel) January 8, 2018