Australian tax changes affect Paddy Power projections
Paddy Power Betfair’s earnings could drop by almost 1.5% due to the new Point of Consumption (PoC) Tax in Australia, according to an analyst’s projection.
Davy stockbrokers said the earlier-than-expected introduction of the 15% tax on online betting in Queensland could be detrimental for PPB’s balance sheet.
The tax was not expected until next January, however the tax has now been scheduled for October 1.
In a note issued on Tuesday, Davy said the earlier introduction now reduces the 2018 forecast to £471m (€535m/$630m). The company’s 2019 earnings could also be decreased by £57.3m.
Related article: Australian Capital Territory introduces 15% POC gambling tax