7th Nov 2019 08:55
(Alliance News) - Flutter Entertainment PLC said Thursday its revenue grew in the third quarter, supported by strong performances in Australia and the US.
In the trading update for the three months ending September 30, the company said its revenue grew 10% to GBP533 million from GBP483 million a year ago, with good growth across both sports and gaming sectors.
Flutter - which was formerly known as Paddy Power Betfair - said that in Australia, Sportsbet revenue increased 19% to GBP119 million, driven by good customer growth over last year.
In the US, Flutter reported a 67% increase in revenue, driven by what it called an excellent sportsbook and gaming performance. As a result, the company expects for the region in 2019 a loss before interest, tax, depreciation and amortisation of GBP40 million to GBP45 million versus previous expectations of a GBP55 million loss.
A combination of responsible gambling measures and international market switch-offs have continued to affect PPB Online, with revenue down 1% on year to GBP247 million. PPB stands for Paddy Power Betfair.
Flutter said that excluding the US its adjusted earnings before tax guidance for 2019 remains unchanged at GBP420 million to GBP440 million.
"Q3 was an important quarter for the group with revenues up 10% and the announcement of our combination with The Stars Group," Chief Executive Peter Jackson said. "We believe that this deal will accelerate delivery of all of our core strategic objectives and we are very excited about the international growth prospects for the combined group."
Flutter announced an all-share acquisition of Canadian online gambling firm The Stars Group at the start October.
Under the deal, Stars Group shareholders will receive 0.2253 of a new Flutter share in exchange for each Stars Group share. Upon completion of the merger, Flutter shareholders will own 55% and Star Group shareholders 45% of the combined firm.
The more-than GBP10 billion merged company will be based in Dublin, with a premium listing on the London Stock Exchange and a secondary listing on Euronext Dublin. Jackson will lead the combined group.
Flutter Entertainment shares were up 0.1% in London at 8,038.00 pence each on Thursday.
By Loreta Juodagalvyte; [email protected]
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