Flutter raises US revenue forecast as gambling giant tells investors the division will turn a profit next year
- Paddy Power and Betfair owner said third quarter revenue rose to £1.9bn
- The US division is expected to turn a profit for the first time next year
Flutter Entertainment has raised its full-year revenue guidance for its US operations after a strong performance in the third quarter.
The Paddy Power and Betfair told investors on Wednesday that third-quarter revenues are up 22 percent year-on-year at constant exchange rates to £1.89 billion, helped by a recent Italian acquisition and US growth of 82 percent.
It now expects full-year revenue in the U.S. division to be between $2.95 billion and $3.2 billion, up from previous expectations of between $2.85 billion and $3.1 billion. billion.
Flutter has seen little slowdown in its US division this year, despite the cost of living crisis
Flutter Shares are down 0.76 percent this morning to 11,685, bringing 2022 profits to 1.2 percent.
The US division, where FanDuel remains the number one operator, is expected to turn a profit for the first time next year. It still expects core revenue losses of between $300 million and $360 million in the US this year.
The group’s full-year EBITDA, excluding the US arm, is expected to remain within its previous guidance of £1.29 billion to £1.39 billion, despite continued weakness in Irish stores and some match cancellations in the UK.
Chief executive Peter Jackson said, “We are very pleased with our performance in our US division since the NFL started in September… at the start of the NBA season.
“The continued momentum in our US division has led to an upgrade in our outlook for the year, confirming our confidence that we will be profitable in 2023.”
Earlier this week, Flutter claimed victory in a long-running legal battle with Rupert Murdoch’s Fox media group, which had plans to take a stake in FanDuel.
The court ruled that FanDuel was worth £19.2 billion, meaning Fox would have to pay £3.6 billion if it decides to exercise its option to take an 18.6 percent stake in FanDuel.
Jackson said: “We were pleased with the successful outcome of our arbitration process with FOX regarding the price of their option to acquire 18.6% of FanDuel.
“This confirms our position on the matter, with FanDuel valued at $20 billion based on its fair market value as of December 3, 2020, and provides important clarity on the significant costs required to buy into the number one US gaming business.”