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Flutter Sees Strong Growth and Raises Full-Year Guidance
DUBLIN (Reuters) – Flutter Entertainment, the leading online betting company globally, announced an increase in its full-year guidance for the second consecutive quarter on Tuesday, attributing this to robust revenue growth from its non-U.S. brands.
While the company’s transformation has been largely fueled by the expanding U.S. market—where its FanDuel brand holds a prominent position—its established businesses in Britain, Europe, and Australia experienced a significant 24% growth in core profits, reaching $392 million in the latest quarter.
This surge contributed to an impressive 74% increase in total adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), which hit $450 million. This figure includes a $58 million profit from U.S. operations, contrasting sharply with a $55 million loss reported during the same quarter last year.
Flutter’s total group revenue for the third quarter reached $3.25 billion, surpassing the $3.05 billion anticipated by analysts tracked by LSEG, marking a 27% increase year-on-year.
“We’ve got just fantastic momentum across the ex-U.S. (business),” Flutter CEO Peter Jackson shared with Reuters, emphasizing the company’s strong performance.
The firm has raised its projections for adjusted EBITDA and revenue by 1% for the full year. This adjustment comes despite a slight downgrade for FanDuel, attributed to a series of customer-friendly outcomes in sports betting this quarter. Nonetheless, this was more than compensated for by upgrades in its other brands, including Paddy Power, Betfair, and Sportsbet.
Looking ahead, Flutter anticipates a 35% year-on-year increase in core profits and a 22% rise in revenue at the midpoints of its forecasts for 2024.
The Ireland-based company predicted in September that the flourishing U.S. market would account for nearly half of an expected doubling of profits by 2027.
Additionally, Flutter reported a robust beginning to the crucial NFL season, with peak betting volumes per minute surpassing those recorded during last year’s Super Bowl.
In September, Flutter had announced a $5 billion share buyback program set to roll out over the next 3 to 4 years. On Tuesday, the company revealed that it would initiate the first $350 million tranche commencing this week.
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