Flutter forecasts 31% increase in revenue for Q3
The FTSE100-listed operator saw strong US and international growth.
Ireland.- Flutter Entertainment has forecast a 31 per cent increase in revenue year-on-year for Q3. It expects revenue for the quarter to reach £1.89bn, up from £1.44bn last year. That’s an increase of 82 per cent in constant currency.
The biggest drivers were the US – now Flutter’s largest market – and international. US revenue rose 114 per cent to $598m, with sports revenue, including sportsbook, exchange, daily fantasy sports and B2B, up 106 per cent. US gaming revenue is expected to be up 36 per cent, with new content driving a 40 per cent rise in average monthly players.
International revenue was boosted by the acquisition of Sisal. Revenue is expected to be up 43 per cent at £466m. Australian revenue is forecast to be down by 14 per cent.
The UK and Ireland, formerly Flutter’s largest market, is expected to generate £509m in revenue, up 4 per cent year-on-year. Online revenue is forecast at £443m but sports betting revenue is expected to be down due to the impact of Euro 2020 last year. Retail revenue is expected to be down 3 per cent at £66m – Flutter puts this down to lower footfall because of hot weather in the summer.
Flutter ups full-year guidance
Flutter has upped its full-year guidance for its US business to between £2.45bn and £2.65bn. EBITDA remains predicted at £235m to £285m. For the rest of its markets, EBITDA is forecast to remain in the range of £1.29bn to £1.39bn.
Chief executive Peter Jackson said: “Flutter delivered a strong Q3 performance with pro forma growth of 11% in both revenue and average monthly players. Our US division is now our largest and generated $700m in revenue, up 82%. Good growth in our ‘consolidate and invest’ international markets and the acquisition of Sisal in August helped drive ex-US revenues.
“We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over 1 million players on a regular NFL Sunday. In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season.
“Outside of the US, we welcomed Sisal, Italy’s leading gaming operator, to our international division during the quarter and look forward to working with the team to grow the business in Italy and in other international markets.”
Earlier this week, Flutter informed shareholders that Zillah Byng Thorne has stepped down as a member of the board after nine years. She will officially leave her directorship duties on January 31, 2023.
Byng Thorne was originally appointed to the board of Betfair Plc in 2013 but stayed on as a director after mergers with Paddy Power and The Stars Group Inc (TSG). In September, it emerged that she had informally signalled an intention to step down from her position as CEO at the media and publishing group Future Plc by the end of next year.
