Profits at Paddy Power owner Flutter fall 24%
Flutter Entertainment, formerly Paddy Power Betfair, posted a jump in interim revenue but a 24% slump in profit on Wednesday as taxes and duties took their toll.
In the six months to the end of June, pre-tax profit dropped to £81m from £106m in the first half of last year, even as revenue rose 18% to £1.02bn. Meanwhile, underlying earnings before interest, taxes, depreciation and amortisation fell 10% to £196m, with the company pointing to an incremental £47m in taxes and duties.
Excluding the taxes and duties, group underlying EBITDA grew 15% during the half.
Revenue from the online segment rose 8%, with continued growth in Paddy Power’s recreational customer base and the roll-out of sportsbook country-specific pricing for Betfair, partially offset by unexpected international market switch-offs.
Revenue growth in Australia was 16%, while the US saw revenues surge 148%, with FanDuel continuing to lead the New Jersey market.
Flutter reiterated its expectations for full-year 2019 underlying EBITDA excluding the US of between £420m and £440m. It also said that in the US, it’s likely to post an EBITDA loss of around £55m due to investment in customer acquisition.
Chief executive Peter Jackson said: “We have had another productive six months at Flutter Entertainment plc. All divisions are performing strongly on an underlying basis and have responded well to the challenges faced. We are pleased with the progress we are making to build a more diversified and sustainable business.