, the parent company of Paddy Power, Sky Bet and others, announced it had increased its profits for H1 as the company exceeded its expectations.){kind=link}
Flutter Entertainment’s pre-tax profit rose by as much as 221% to £77m
Flutter Entertainment (LON:FLTR), the parent company of Paddy Power, Sky Bet and others, announced it had increased its profits for H1 as the company exceeded its expectations.
The FTSE 100 group’s pre-tax profit rose by as much as 221% to £77m.
Flutter Entertainment’s group revenue nearly doubled to £3.05bn, as the number of monthly users grew by 40%.
Reported revenue and earnings (adjusted EBITDA), rose by 99% and 75%, helped by the company’s acquisition of The Stars Group, the Canadian sports betting and online casino firm.
The Flutter Entertainment share price surged by 7.03% early on Tuesday morning.
“The first half of 2021 exceeded our expectations,” said chief executive Peter Jackson. “Our global sports businesses benefitted from further enhancements to our products and the return to more normalised sporting calendars while we sustained our strong performance in gaming despite the challenging comparatives set last year.”
“The company has continued its expansion in the US at pace,” said Neil Shah, director of research at Edison Group, “with its FanDuel product capturing 45% of the online sportsbook market share”.
“This has led to a revenue growth in the market of 159% to £652m ($906m), with over 2.2 million customers having been acquired since sports betting launched at an average CPA of $291. As a result, Flutter US expects to generate positive EBITDA in 2023, however, this is mainly driven by anticipated future state openings, with Arizona and Connecticut next in line to open up.”
However, Flutter Entertainment’s debt level of £2.682bn, making it more difficult for the company too payout any dividends.
“The company has also continued its commitment to safer gambling during this period as it boosted investment in resources and technology to optimise its controls,” Shah says “In addition, the company has pushed campaigns to promote safer gambling and awareness campaigns to the forefront of its strategy as it remains committed to promoting positive customer engagement. The company has already reported a solid start to the second half of the year. With further expansion across critical markets expected, the next six months look positive for the business and its stakeholders.”