Despite the temporary loss of televised horse racing from the UK, Paddy Power said trading in the first five months of the year was strong and it was confident about prospects for the remainder of the year.

The bookmaker said turnover in the five months ending in May was up by 18 per cent on the same period in 2003. Average gross win percentage - a measure of the company's take from bets laid - was strong across all its businesses, particularly in the online and Dial-a-Bet channels. The company said it expected gross win to fall within its normal annual ranges for the year as a whole.

Shareholders at yesterday's annual meeting in Dublin were also told that turnover in its betting shops was up 23 per cent in the five months to the end of May.

The Dial-a-Bet division posted a 14 per cent rise in revenues while turnover in the online division was up 7 per cent on last year despite the loss of televised racing.

However, Paddy Power said coverage had resumed on June 11th and early indications were that growth levels were improving. The company said it continued to see an improvement in the mix of the online and Dial-a-Bet customer base.

Paddy Power also said it was continuing to expand its business in both the UK and Ireland.

It has 141 betting shops in Ireland, having opened three new shops in Dublin and one in Waterford over the past five months. It expects to open four more here this year.

Meanwhile, it has 20 shops in London and anticipates having 30 by year-end.

"The London market alone is more than double the size of the whole Irish market," finance director Mr Ross Ivers said.

In response to a shareholder question, chief executive John O'Reilly said the company had seen no impact from the introduction of the smoking ban. "It's business as normal," he said.

Shareholders at the meeting approved a number of resolutions to reconfigure the company's share incentive schemes.