Flutter shares among cutters as players streak wins

0
1
  • The streak of winning favorites cost £ 60million in October
  • Flutter shares fall almost 8%
  • Interest in gambling in the United States continues to soar

DUBLIN, Nov. 1 (Reuters) – Flutter Entertainment (FLTRF.I), owner of Paddy Power, Betfair and Fanduel (FLTRF.I), lowered its full-year profit forecast on Tuesday, sending its shares sharply lower after that the players had a winning streak in October.

The world’s largest online betting group said it expects adjusted EBITDA for the full year of between £ 1.24 billion and £ 1.28 billion from the range of $ 1.27 billion to $ 1.37 billion that he forecast in August.

Bookies usually suffer when the favorites win and GM Peter Jackson has said this has happened across the board last month, including Liverpool’s pounding of Manchester United in the Premier League and the world champion’s last victory. boxing heavyweight Tyson Fury.

The race hit EBITDA by around £ 60million and Jackson said Flutter avoided another “bloodbath” overnight when discount frontrunner Incentivize came in second in the Melbourne horse race. Cup. Read more

“That’s what happens, sometimes you have a streak of bad luck and it helps our bettors that they see a winning streak,” Jackson told reporters.

Flutter stock was down 7.8% to 152.50 euros at 08:35 GMT.

Flutter also said on Tuesday that its temporary withdrawal from the Dutch market is expected to cost it £ 10million this year. The new rules introduced there require game operators to apply for a new license to offer online services.

The suspension will cost an additional £ 40million in 2022, assuming it starts trading again in the third quarter.

AMERICAN EXPANSION

Flutter said on Tuesday that its third quarter 2021 revenue grew 12% year-over-year at constant exchange rates, thanks to a 13% increase in average monthly player count and a solid performance in Australia and the United States.

Revenues in the UK and Ireland fell 5%, which Flutter says partly reflects a busier time around the same time last year, when a number of sports venues were revamped due to of COVID-19.

With 85% revenue growth in its US market leader FanDuel, up from a 159% increase in the first half of the year, the Dublin-based group said it remained disciplined to chase customers amid increased competition.

He added that FanDuel now regularly experiences betting levels on American football Sundays that match its performance at the 2021 SuperBowl as the game continues to take off quickly in the United States after the sports betting ban was lifted in 2018.

Flutter, who said in August that he expected to make a profit in the United States in 2023, expects to record an EBITDA loss of £ 250m to £ 275m this year, up from a previous estimate of £ 225m. 275 million pounds.

Jackson also said Flutter was not bidding for The Athletic sports website.

Reporting by Padraic Halpin Editing by Keith Weir

Our Standards: The Thomson Reuters Trust Principles.