The company gained from favourable racing results including Comply or Die's Grand National win as well as an FA Cup competition strewn with giant-killings.

Paddy Power also banked big gains from favourite Tiger Woods' second place at the US Masters golf tournament to 130-1 outsider Trevor Immelman in April.

The healthy start to the year will leave 2008 operating profits around 14% higher at 82 million euros (£65.3m) and 8% higher than market hopes, the company said.

The forecast comes despite the pound's weakness against the euro hitting operating profits by 5 million euros (£4m) if exchange rates remain at current levels for the rest of the year.

"This will be more than offset by the benefit of the favourable momentum and sporting results to date," Paddy Power added.

The bookmaker also took around 1 million euros (£798,000) in bets on the next manager of Ireland's national football team after the departure of Steve Staunton last October.

There were 16 favourites at various stages in the succession race before Italian Giovanni Trapattoni was eventually unveiled in February.

Paddy Power's online betting site also showed strong growth although telephone gambling was flat as expected as customers moved across.

The positive update gave its shares a 4% boost and provided similar lifts to other listed bookmakers including Ladbrokes and William Hill.

Investec Securities analyst Matthew Gerard upgraded this year's profits forecasts to 85.6 million euros (£68.2m), as well as marking up 2009 expectations.

He said: "We are of the view that Paddy Power's Irish business will prove relatively defensive in the face of a consumer slowdown.

"While sports margins have undoubtedly helped, the momentum in revenue growth remains strong."

The company employs 1,536 staff. It has 158 betting shops in Ireland and 58 in the UK, although it has plans to double the size of its UK presence in the next three years by expanding into Manchester and Glasgow and opening additional shops in London.