The American dream: Flutter upgrades US outlook with ‘no sign of slowdown’
The American dream continues for Flutter, as the betting giant boosts it revenue guidance for its US business Fanduel.
The Paddy Power and Betfair owner told investors its third-quarter revenues rose 22 per cent year-on-year to £1.89bn, bolstered by a recent Italian acquisition and stateside success.
US revenue surged 82 per cent to $700m, pushing the firm to upgrade its revenue guidance to between $2.95bn-3.2bn (£2.56bn-£2.78bn).
In Europe, the company kept its earnings in line with previous guidance at between £1.29bn-£1.39bn, moderated by “continued Irish retail weakness and UK fixture cancellations”.
It added there was “no discernible sign of slowdown” due to the cost of living crisis, with average monthly players going up in the third quarter by 23 per cent from last year.
“We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over 1m players on a regular NFL Sunday”, said CEO Peter Jackson.
However, the markets did not share this enthusiasm, with shares fluttering to the bottom of the FTSE 100 this afternoon, and making it the second worst performing stock on the UK index today.
Analysts at Peel Hunt said the firm’s share price continues to not to give Flutter the “sufficient credit” for its success in the US.
FanDuel remains the number one sportsbook in the US with a 42 per cent market share enhanced by a 19 per cent market leadership in US online gaming.
Head of investment at interactive investor Victoria Scholar said that the firm was weighed down by Jackson’s comments that the sector was unlikely to see reforms on gambling regulation before Christmas – something that she said has been an “overhang” since the first quarter.