Flutter Entertainment posts higher Q3 revenue
Flutter Entertainment was the biggest FTSE 100 loser on Thursday with the shares down 10% after the company lowered full year revenue and profit guidance to the bottom of the prior range.
The fall leaves the shares up around 5% for the year, a far cry from the middle of the year when they were up nearly 50% on excitement around the firm’s plans to list in the US and strong momentum at its US sports fantasy business FanDuel.
Client friendly sporting results in European Football during September and October which have been flagged by peers lopped £50 million off projected EBITDA (earnings before interest, tax, depreciation, and amortisation) while foreign exchange headwinds had a £30 million impact.
Full year EBITDA excluding the US is now expected to be £1.44 billion, at the bottom of the previously guided £1.44 billion to £1.6 billion range.
Meanwhile the US is expected to generate revenues of £3.75 billion and EBITDA of £140 million, roughly in the middle of the previously guided range.
Commenting on the success of the US business, chief executive Peter Jackson said: ‘We are the first online operator to achieve structural profitability, and the strong ramp in EBITDA during 2023 will continue into 2024 and beyond, as our profit margins expand materially.
‘The NFL season is off to an excellent start with our product leadership driving average monthly player growth of 38% to 2.6m in the quarter. I am excited about our plans heading into the sports rich months of November and December as we execute on our winning strategy which, combined with the FanDuel Advantage, keep us leading the industry.’