Paddy Power, the Irish bookmaker, has disproved the old adage that the bookie always wins by warning on Tuesday that profits will be much lower than the stockmarket had been betting.
Its punters have been winning by backing the favourites at sports events such as the Champions League – where fancied clubs lead the groups of club football's most prestigious tournament – as well as the Melbourne Cup. Australia's most famous horse race was won earlier this month by Fiorente, who at odds of 6-1 was the first favourite to win the race since Makybe Diva triumphed in 2005.
The company said that it now expects a lot lower growth in operating profits in 2013, meaning they will come in around €11m (£9.2m) lower than "the mid-point of our guidance" given in August.
Last week British rival Ladbrokes responded to speculation it could be forced to cut estimates for the second time in three months on adverse sports results, insisting it was on track to hit analysts' forecasts.
Paddy Power shares were trading down 4.82 cents at €57.68 by Tuesday lunchtime.