REFILE-UPDATE 1-Paddy Power moves into France, profits on target

(Refiles to clarify managing director's full title in paragraph 7)

* Strikes outsourcing deal with largest European player

* Full-year profits to meet market consensus

* Shares rise 5.5 percent

By Padraic Halpin

DUBLIN, Nov 12 (Reuters) - Irish bookmaker Paddy Power (PAP.I) (PAP.L) will move into the French online sports betting market and said it remained on track to meet market consensus for full-year profits on Thursday, boosting its shares.

Ireland's biggest bookie agreed a five-year outsourcing deal to provide betting technology and pricing for French horse racing operator Pari Mutuel Urbain (PMU), the largest betting organisation in Europe with 9.3 billion of turnover in 2008.

"This deal opens other doors for Paddy Power to do further business-to-business deals across Europe as regulate and tax models come to the fore," Davy Stockbrokers analyst David Jennings wrote, calling it a massive catalyst for the stock.

Paddy Power shares were trading 5.6 percent higher at 23.53 euros by 0850 GMT in an Irish market .ISEQ up 0.38 percent.

The PMU deal, to start in May or June next year, will add around 3 to 5 million euros in revenue by 2012 and open up similar potential moves, Finance Director Jack Massey told Reuters. [IDnNWLA8000]

"The strength of the deal is the quality of the partner which gives us an excellent calling card of other such opportunities that may emerge," Massey said in an interview.

Breon Corcoran, managing director - non retail and development, added that Paddy Power expected to expand further through outsourcing deals and partnerships with local partners as a number of regulatory markets open up over the next three to five years.

The bookmaker, which expanded into the Australian market earlier this year, said the latest deal would create 50 jobs at its Dublin headquarters by June 2010, with 200 additional jobs expected in the subsequent three years.

Paddy Power forecast it would meet market consensus for 2009 adjusted diluted earnings per share of around 113 cents -- down from 140.5 cents last year.

It added that while sporting results were adverse for the 19 weeks to November 10, turnover for the period had grown strongly as its presence in the UK increased to 80 shops after it added 22 so far this year. (Editing by Jon Loades-Carter)