Paddy Power Betfair dives as deal king quits

The multi-millionaire architect of the biggest merger in UK bookmaking, Paddy Power Betfair boss Breon Corcoran, unexpectedly quit today, sending the online bookie plunging to the bottom of the FTSE 100.

The 46-year-old Irish businessman is stepping down as chief executive after five years in charge, firstly as Betfair boss from 2012 then leading the combined business from 2015.

Prior to that, he joined Paddy in 2001, rising to chief operating officer.

Corcoran owns 140,000 shares in the company worth £10.5 million and options over 431,000 worth £32 million.

The boss, who resigned last night and will stay on for up to 12 months longer, said: “There is no good time, no easy time to leave a great business. But it’s been 16 years and it will be 17 before I’ve finished.

"This is a great platform, but I’ve just worked in one industry and I want to minimise the probable regret if I don’t try something else.

“I’ve got a lot of emotional investment in the business and it is important that we do a proper transition.”

Paddy’s 2015 merger with Betfair paved the way for a series of mega-mergers in the industry including Ladbrokes’ tie-up with Coral and GVC’s swoop for bwin.partygaming.

Corcoran has been working intensely for the past two years integrating the technology platforms of the two businesses and will be replaced by the UK boss of payments firm Worldpay Peter Jackson, who has sat on the Paddy Power Betfair board for the past four years. “There is benefit there in terms of continuity,” Corcoran added.

The board began its search for a successor last December after he made clear his intentions to leave.

Shares in the bookie sank 7% on the news, 560p to 7360p. Peel Hunt analyst Ivor Jones said: “He’s tremendously highly thought of. People who have worked with him say that his grasp of the detail is quite extraordinary.”

Other factors weighing on the bookie included a short preview of tomorrow’s results, which showed underlying profits up 21% in the first half of the year and trading in line with expectations when some City watchers were holding out for an upgrade.