Flutter shares are up 14 percent today, making Paddy Power’s parent company the biggest gainer on both the London and Dublin Stock Exchanges after interim results solidified its Fanduel unit’s dominance in the US.
ts shares closed at €127 a share in Dublin, but still well below their 12-month high.
Despite a decline in overall profits and falling revenue in the UK and Ireland, the big story for the six months to the end of June was the magnitude of the US unit’s growth.
Revenue had been hit by safer gambling initiatives in the UK and a drop in online betting due to the Covid lockdowns.
“Fanduel is fundamentally transforming the group,” CEO Peter Jackson told reporters.
Legal gambling in the US is still relatively immature compared to the UK and Ireland, but Fanduel’s half-year revenue rose 50 percent to £1.1 billion, overtaking Flutter’s traditional core for the first time Great Britain and Ireland Department.
The U.S. operation also posted quarterly profit, a first for any operator in the American market, and is on track to become profitable in 2023 unless capital investments are accelerated by the expansion of the betting law to new states, the said Company.
Flutter’s market share in the 15 U.S. states where Fanduel is allowed to operate rose to 51 percent in the second quarter — making it the market leader by a wide margin.
Closer to home, Paddy Power closed five of its Irish stores but opened 15 new UK stores during this period.
It will continue to monitor conditions in both retail markets, with closures or openings potentially in the works depending on local conditions.
Retail and visitor numbers in central Ireland have recovered more slowly than the UK post-Covid, management said.
There are currently “no discernible signs of a consumer slowdown,” Flutter said.
The company said it expects to monitor key spending indicators amid the “uncertain” macroeconomic outlook.
However, online betting has bounced back to historic levels from those lockdown highs, the company said.
Management said it sees no evidence that inflationary pressures on household spending are hurting the business.
In Ireland and the UK as a whole, the company said performance slowed in the first half as a result of the launch of safer gaming initiatives in the UK.
Assuming normalized sports results, Flutter expects full-year earnings to be in line with market expectations.
“We grew our recreational customer base by over a million players in the half and increased the proportion of customers using safer gaming tools to over a third,” said Mr. Jackson.
“We are particularly pleased with the momentum in the US, where we extended our leadership position in online sports betting, with Fanduel claiming 51 percent market share and number one in 13 of 15 states, contributing to positive second quarter results. “
https://www.independent.ie/business/irish/fanduels-soaraway-success-in-us-sports-betting-boosts-flutter-stock-41906951.html Fanduel’s meteoric success in US sports betting is boosting Flutter stocks