Paddy Power owner Flutter narrowed its third quarter loss and raised its guidance amid what it called a “strong” start to America’s NFL season even as a number of favourites winning since October 1st “more than offset” its momentum in the US.
The world’s biggest listed gambling firm said losses narrowed in the three months to the end of September to $114 million (€107.3 billion) from $262 million a year ago while revenue rose 27 per cent to $3.25 billion. Average monthly players – a key measure for the betting industry – rose 16 per cent to 12.9 million.
“Flutter had an excellent quarter with revenue growth accelerating to 27 per cent, well ahead of market expectations,” chief executive Peter Jackson said in a statement. “We expect to have significant capital to deploy over the coming years and I am excited to commence the share repurchase program in [the fourth quarter].”
The shares rose as much as 4.8 per cent in after hours trading in the US, having fallen during the regular trading day.
The US market dominated growth, with revenues there jumping 51 per cent compared to a year ago, topping $1.25 billion. UK and Ireland – a much more mature betting market than the US – saw sales increase 18 per cent.
The UK and Irish business saw sportsbook revenue jump 9 per cent, driven by a “strong conclusion” to football’s European Championship while margins increased 80 basis points.
The company raised its revenue and adjusted earnings before interest, tax, depreciation and amortisation guidance by 1 per cent, reflecting what it called a strong performance outside the US.
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