Flutter Entertainment raised its earnings guidance on Wednesday, as betting customers grow. The group reported a 30% increase in revenue in Q3.
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.
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.
