Flutter Entertainment Raises Full-Year Forecast as US Losses Decline

Flutter Entertainment has updated its financial outlook for the year, the revision comes on following a reported revenue growth driven by its international operations, particularly outside the United States.

In the third quarter, Flutter reported a group revenue of approximately $3.25 billion, showing a 27% year-on-year increase. This figure surpassed analysts’ expectations, which had anticipated revenues around $3.05 billion. The company’s core profit from its established brands in markets such as the UK, Europe, and Australia rose by 24%, reaching $392 million.

The adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) also saw a significant uptick of 74%, climbing to $450 million. The growth was bolstered by a turnaround in its US operations, where Flutter recorded a profit of $58 million, a stark contrast to the $55 million loss experienced during the same period last year.

The company has also adjusted its full-year guidance, increasing its EBITDA and revenue projections by 1%. This adjustment reflects a minor downgrade for FanDuel, attributed to a series of favourable outcomes in sports betting. However, this was more than compensated for by upgrades in other brands, including Paddy Power, Betfair, and Sportsbet.

Long-Term Projections

Looking ahead, Flutter anticipates that the US market will account for nearly half of its projected profit doubling by 2027. The company’s strategic investments and focus on customer engagement are expected to drive continued growth in this sector.

Flutter’s revised forecasts indicate a promising outlook for the upcoming year, with core profit expected to rise by 35% and revenue by 22% at the midpoint of its projections.

In a bid to enhance shareholder value, Flutter announced a substantial $5 billion share buyback program set to unfold over the next three to four years. The initial tranche of $350 million is set to commence shortly, signalling the company’s confidence in its financial health and future prospects.