14th Aug 2024 09:53
(Alliance News) - Flutter Entertainment PLC on Wednesday raised guidance after reporting strong financial results for the second quarter with significant improvements to revenue and profit, partly thanks to favourable results for the company from betting on the Euros.
Flutter is a sports betting and gaming company based in New York, having moved its headquarters there from Dublin and its primary listing there from London. It was formerly known as Paddy Power Betfair.
Pretax income more than doubled to USD350 million in the second quarter that ended June 30 from USD150 million the previous year.
Flutter Entertainment shares were up 10% to 16,135.00 pence each in London on Wednesday morning.
Revenue increased 20% to USD3.61 billion from USD3.00 billion, as cost of sales rose 23% to USD1.84 billion from USD1.49 billion.
Technology, research and development expenses grew 23% to USD216 million, while sales & marketing expenses increased 12% to USD746 million.
Chief Executive Officer Peter Jackson said: "Our US performance was excellent in new and existing states reflecting our disciplined approach to customer acquisition and our best-in-class product...Outside of the US, we delivered an engaging offering during the European Football Championships, as over four million customers placed a bet on the tournament, with results during the tournament very favourable for us."
Flutter raised its full-year guidance in light of this strong quarterly performance.
US revenue is expected to be between USD6.05 billion and USD6.35 billion, up from guidance of USD5.8 billion to USD6.2 billion previously.
US adjusted Ebitda is forecast to be within a USD680 million to USD800 million range, ahead of USD635 million to USD785 million before.
Guidance for group revenue excluding the US has risen to a USD7.85 billion to USD8.15 billion range from USD7.65 billion to USD8.05 billion, with adjusted Ebitda guidance increasing to USD1.69 billion to USD1.85 billion from USD1.63 billion to USD1.83 billion.
By Elijah Dale, Alliance News reporter
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