Flutter, owner of Paddy Power, saw strong growth from recreational players in the first half of the year, with the company reporting no signs of a consumer slowdown at this time amid rising costs.
Average monthly players grew to 8.7 million in the first half of the year, up 14 percent year-on-year.
Adjusted sales rose to £3.3 billion in the six months ended June 30, an increase of 11 per cent over the same period last year.
However, adjusted profit fell 43 per cent to £177m, while adjusted group EBITDA fell by a fifth to £476m in the first half.
Despite the drop in earnings in the first half of the year, Flutter’s shares jumped over 12 percent after earnings this morning.
The US market was highlighted for strong growth as it posted positive H1 EBITDA. Flutter reports that the company’s share of the sports betting market has increased to 51 percent.
The betting giant now anticipates increased US investment as the company aims towards profitability next year.
In Ireland and the UK, the company said performance was slower in the first half due to safer gambling initiatives and a reduction in frequency due to the lifting of Covid restrictions. Revenues in these markets fell 4 percent.
The company said the second half of the year started as expected, adding that there are “no discernible signs of a slowdown in consumers” at this time. The company expects to monitor key spending indicators amid the “uncertain” macroeconomic outlook.
Assuming normalized sports results, Flutter expects full-year EBITDA to be in line with market expectations.
“We grew our recreational customer base by over a million players in half and increased the proportion of customers using safer gaming tools to over a third,” said Chief Executive Peter Jackson.
“We are particularly pleased with the momentum in the US, where we have extended our leadership position in online sports betting, with FanDuel claiming a 51% market share and being number one in 13 of 15 states, contributing to positive second quarter results. “
He said the group is looking forward to the start of the football season in the US and Europe, with the company “firmly on track to profitability in 2023”.
https://www.independent.ie/business/irish/flutter-share-price-soars-as-monthly-players-and-revenues-rise-41906951.html Flutter stock price increases as monthly players and revenue increase