1st Mar 2022 10:18
(Alliance News) - Flutter Entertainment PLC on Tuesday reported a rise in revenue in 2021 with a strong rise in customers as its FanDuel operation in the US remains on track for profitability in 2023.
Shares in the blue chip gambling firm tumbled 13% in London on Tuesday morning at 9,272.00 pence each.
For 2021, the Paddy Power-owner sunk to a GBP288.4 million pretax loss compared to the GBP1.1 million profit recorded in 2020, after taking a GBP543 million charge for non-cash amortisation from acquired intangibles.
The charge, Flutter noted, stems from its May 2020 combination with The Stars Group, resulting in a full 12 month charge in 2021. Although the acquisition took a chunk out of profits, it benefitted revenue.
On an adjusted pro forma basis, Flutter posted a pretax profit of GBP620 million, down 24% from GBP813 million.
Revenue increased 37% to GBP6.04 billion from GBP4.41 billion in 2020. Sports revenue was up 26% in 2021 to GBP3.77 billion from GBP3.00 billion, while Gaming revenue was flat at GBP2.26 billion.
The Dublin-based firm said recreational customers drove revenue growth, rising 23% to 7.6 million average monthly players.
Chief Executive Peter Jackson said: "In the US, we delivered over USD1.9 billion in revenue, leveraging our differentiated product proposition to remain the number one sportsbook in the market with a 40% share. Despite our scale we retain a challenger mindset; this year we launched a number of new features to our market-leading same game parlay product, maintaining our competitive advantage in sports. I'm also pleased to see the progress on our path towards profitability; FanDuel sportsbook and gaming business delivered positive contribution in 2021 for the first time, a significant milestone for the brand."
The company's US unit includes FanDuel, FOX Bet, TVG, PokerStars and Stardust brands. Flutter's US sportsbook stakes surged to GBP11.28 billion in 2021 from GBP4.41 billion in 2020, with average monthly players up 71%.
Turning to the UK & Ireland unit - which operates Paddy Power, Betfair and Sky Betting & Gaming brands online, as well as retail operations in the UK and Ireland - sportsbook stakes were up 21% to GBP11.38 billion from GBP9.40 billion.
"In the UK and Ireland, we stepped up our safer gambling efforts and increased protections for our customers ahead of anticipated regulatory change. We also welcomed Tombola, the UK's leading recreational bingo brand, to the group in early January. In Australia, Sportsbet delivered another strong performance demonstrating once again the benefits of securing a gold medal position in our key markets," Jackson added.
Flutter did not recommend a dividend in 2021, or 2020.
"The board's capital management policy for the group remains to target a leverage ratio of 1.0x to 2.0x over the medium term. The board will continue to monitor the financial performance of the group, it's anticipated deleveraging and balance sheet position, and will decide when it is an appropriate time to reinstate a dividend," it explained.
Looking ahead, Flutter said trading in the first 7 weeks of 2022 has been in line with expectations with revenue up 2% year-on-year, reflecting strong comparatives which had benefited from very favourable sports results.
Further, assuming there are a normal run of sports results, Flutter expects revenue growth to accelerate as 2022 progresses, reflecting the phasing of sports margin comparables and safer gambling measures taken in 2021.
By Paul McGowan; [email protected]
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