DAVY VIEW

The acquisition of Adjarabet appears to fit neatly with Paddy Power Betfair’s (PPB) strategy. It has added the dominant gaming business and brand in the highly attractive (fast growing, regulated) online Georgia gaming market. While reasonably modest in the context of the overall group (it will likely add a low- to mid-single percentage to our 2019/2020F adjusted earnings forecasts), it is a timely reminder that the group investment thesis extends beyond merely the evolution of sector regulation. The suite of growth opportunities available to PPB, both organically and inorganically, remain extremely attractive.