Paddy Power Betfair estimated yesterday that its full-year earnings hit the mid-point of its guidance despite a run of adverse sports results at the end of the year, pointing to the underlying strength of the recently merged business.

The gambling company in November raised its full-year core earnings (Ebitda) forecast to a range of £390-405 million from a previous range of £365-385 million citing a boost in the sterling value of its euro revenue, last year’s merger and favourable sporting results.

However, results favoured punters across the industry in the fourth quarter, which the Dublin-headquartered firm said cost it around £40 million before gamblers bet with any winnings, including a £5 million loss on the US presidential election.

“This outcome disguises a better underlying performance than we were forecasting,” Davy Stockbrokers analyst David Jennings, who had expected Ebitda of £408.8 million, wrote in a note.

“From analysing the statement, we estimate that had results been “normal”, Ebitda for the year would have landed north of £420 million.”

Online betting exchange Betfair and Paddy Power, which has a chain of shops as well as an online business – including a presence in Malta – said its online revenue fell three per cent but were up 18 per cent in its Australian business, which Jennings said bode well for 2017.

Rival William Hill said this month that its annual profits would fall to the bottom of its forecast range while the recently merged Ladbrokes Coral Group said it would meet its guidance.