Chances of Paddy Power joining FTSE 100 rise

The likelihood of Paddy Power joining FTSE 100’s portfolio is increasing. If their stock rises as expected, they will soon be part of London’s premier equity index

According to UK gambling news, there is a growing possibility of Paddy Power joining FTSE 100. They currently reside in the less prestigious FTSE 250 index, but their recent merger with Betfair has catalyzed strong growth performance. The promotion is likely to be actualized in two weeks time.

Paddy Power Betfair was formed only on February 2nd, as a merger of Paddy Power and Betfair, both well known firms to those who bet on sports in the UK. The firms operate separately, with a combined revenue in excess of £1 billion.

Paddy Power joining FTSE 100 has been expected for some time

Unlike the US stock exchange, which features a diverse selection of large firm from across a range of industries, Paddy Power joining FTSE 100 would be solely due to their market valuation. If a stock rises to the top 90, it is automatically promoted to the FTSE 100 (the Financial Times Stock Exchange), whilst stocks automatically drop out if they fall below the top 110.

Thus, it is not assured that Paddy Power joining FTSE 100 will result in a long stay in the UK’s premier equity index. However, reaching the index was a stated goal of the merger, and has been expected. Headquartered in Dublin, Paddy Power Betfair operate in over 100 markets worldwide. The merger was one of a number of recent examples of gambling companies combining to achieve greater size in the attempt to offset problematic tax and regulation.