Paddy Power owner Flutter bolstered by US expansion
Flutter revenues bolstered by US expansion and acquisitions but Paddy Power owner’s UK business suppressed by safer gambling rules
- Flutter Entertainment enjoyed higher revenues in the past year
- Last month, the betting group announced plans to list its shares in the US
Flutter Entertainment enjoyed higher revenues in 2022, boosted by a strong performance in the US after a string of acquisitions.
The group, which owns Paddy Power and Betfair, said revenues in the year to 31 December increased by 27 per cent to £7.69billion, while average monthly players (AMP) rose 26 per cent to 10.2million.
Earnings rose 27 per cent to £918million and the firm’s pre-tax loss narrowed to £275million, marking an improvement from £288million a year ago.
US revenue jumped 87 per cent to £2.6billion, with the bulk stemming from the FanDuel business.
Having a flutter: Flutter Entertainment enjoyed higher revenues in the past year
The group said its bottom line had also benefited from the acquisitions of online bingo operator Tombola and Italian gaming firm Sisal at the end of 2021, as well as an ‘exceptional’ US performance.
The firm’s preliminary annual results show that US revenues came in at the upper end of guidance at £2.6billion.
Last month, the betting group announced plans to list its shares in the US.
On its UK and Ireland operations, the group said: ‘Product improvements and World Cup driving strong second half AMPs, partly offsetting annualisation of safer gambling initiatives and prior year Covid frequency benefit.’
Peter Jackson, Flutter’s chief executive, said 2023 ‘is off to a pleasing start’, driven by ‘positive momentum’ from the end of last year.
He added: ‘With our combined US business on track to deliver a positive EBITDA for the full year for the first time, the group is currently at an earnings transformation point, and we look forward to delivering future growth.’
Richard Hunter, head of markets at Interactive Investor, said: ‘Investor excitement continues to build around prospects for Flutter with the US becoming an increasingly important engine of growth.’
‘In early exchanges the shares have inevitably seen some profit taking after what has been a strong run, with the price having risen by 31 per cent over the last six months.
‘Over the last year, the performance has been even stronger, with a hike of 43 per cent comparing to a gain of 6.5 per cent for the wider FTSE 100.
‘The initial share price dip following the numbers is unlikely to detract from the allure of prospects for the group, however, especially Stateside. As such, the market consensus of the shares as a buy is unlikely to alter.’
Flutter shares were down 0.89 per cent or 120.00p to 13,370.00p this afternoon, having risen over 46 per cent in the past year.
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