Fancy a Flutter, Paddy Powers a Brilliant Q3 for the Mother Ship
Q3 revenue for FTSE100-listed Flutter Entertainment has risen 30 per cent, to £1.33bn (US$1.75bn/€1.49bn), compared to the same period last year.
Everything on Flutter’s books—except UK and Irish retail–was up.
Flutter’s core Paddy Power Betfair (PPB) vertical was up nine per cent, year-on-year, to £351m (US$463m/€394m). Sports revenue was up five per cent. And gaming revenue was up 31 per cent.
Online revenues, driven by a big increase in daily visitors to digital platforms, grew 12.6 per cent to £278m (US$367m/€312m); although PPB retail action fell just over one per cent, to £74m (US$98m/€83m), because of Covid-19 drags.
Revenue from the Sky Betting and Gaming (SBG) division grew by over 26 per cent to £231m (US$305m/€259m).
“Flutter’s performance in the third quarter exceeded our expectations in both sports and gaming,” said Chief Executive Peter Jackson. “Our strong trading continued as we grew market share in key regions while retaining our commitment to safer gambling practices.”
Down Under Flutter’s Q3 success was even more marked with revenue from its Sportsbet vertical jacking 76 per cent to £320m (US$422m/€359m) — second only to Paddy Power Betfair in the company’s handle.
Preference for online and iGaming growth–over the “old normal” of bricks-and-mortar retail, as with so many companies around the world during the pandemic–is once again the significant takeaway.
The United States was where Flutter saw the keenest growth in Q3.
US revenue leapt 82 per cent to £161m (US$212m/€181m), sports revenue was up 36 per cent and gaming revenue rocketed—there is no other word–by nearly 300 per cent, year-on-year.
Flutter’s online US platforms attracted an estimated 1.8m punters in the third-quarter.
The firm’s FanDuel sportsbook in the US is proving to be a big hit, with players reportedly doubling, and expansion into the states of Illinois, Tennessee, Michigan and Virginia either set or planned for the near future.
Flutter’s Q3 group earnings, before interest, tax, depreciation and amortisation (EBITDA)–excluding the United States—is now estimated to be in the region of £1.3bn (US$1.7bn/€1.4bn).
Added Jackson: “We are now a truly global business with significant scale. As such, we are in a unique position to respond to the many opportunities we see across our growing markets.
“Looking ahead, whilst the outlook with respect to Covid-19 remains uncertain, we are confident that our business is well positioned to capture further growth in a sustainable and responsible way.”