Flutter Entertainment raised its earnings guidance on Wednesday, as betting customers grow. The group reported a 30% increase in revenue in Q3.
EBITDA Up By 2.4% From Previous Forecast
Betting giant Flutter Entertainment (FLTR), the owner of Paddy Power, Betfair, and Poker Stars raised its full-year operating profits guidance on Wednesday and reported a 30% increase in third-quarter revenues.
Flutter, the world’s biggest betting group, expects an EBITDA (earnings before interest, taxes, depreciation, and amortization) of £1.275 million to £1.350 million ($1.69 million to $1.79 million), up by 2.4% from the forecast in August. The company said its performance in sports and gaming in the third quarter outside the US exceeded expectations.
Flutter Focuses on US Market
An EBITDA loss of £160 million to £180 million is expected for 2020 in the US, which was also raised from the £140 million to £160 million previously announced. Flutter invested £800 million into the US market in May in order to boost growth, as more and more states soften wagering rules.
Flutter’s focus on the US is also a result of the anticipated changes in the UK gambling legislation and the £50 million decrease in revenue expected in Germany.
Flutter announced on Wednesday that its brands FanDuel and FoxBet have remained market leaders with 46% share in online sports betting. FanDuel recorded two times more customers during Q3 on a like-for-like basis, pushed by partnerships with US radio and broadcasting leader Entercom and AT&T’s sports TV subsidiary Turner Sports.
Sports brand launches have been facilitated by the implementation of online registration in some states, such as Illinois.
Flutter’s Betfair reported a record amount of bets placed during the US elections, with nearly £600 million.
The group also reported an overall 41% year-on-year increase in daily customers in the US and a higher than expected new customer rate.
In Australia, turnover rose by 76% year-on-year while its UK brands, Paddy Power and Betfair, generated 14% more revenue online compared to last year.