Flutter Entertainment, recognized for being the holding company for a variety of international sports betting and gaming brands such as Paddy Power, Betfair, Sportsbet, FanDuel, TVG and Adjarabet, has released third quarter financial results in which it reports that despite the crisis caused by COVID-19 has seen a 33% increase in its income from online operations.
In its financial report released this week, Flutter Entertainment highlighted the following:
- Group online revenue growth of + 33%
- Average daily customers grew 41% globally
- In the UK and Ireland, the Paddy Power and SBG brands participated; revenue growth of + 32% and + 26% respectively
- Outstanding Australian performance; + 76% revenue with successful BetEasy customer migration
- Normalization of income trends on PokerStars; improved clarity in German regulation
- Maintains number one position in the US 46% online sports betting market share and total online share of 29%
- Acquisition of new customers better than expected, that is, more than 450,000. More than 1.8 million active clients in the third quarter
- Signing of major, multi-year media associations that ensure long-term access to key assets.
- Total US GGR is expected to exceed $ 1.1 billion in 2020 with an NGR of over $ 850 million
- Group EBITDA outside the US 2020 is expected to be £ 1,275-1,350m driven by higher customer volumes across all divisions (previous forecast: £ 1,175-1,325m)
- In the US, increased investment in customer acquisition is expected to lead to an EBITDA loss of £ 160m-180m (previous forecast: £ 140-160m)
On the published results, Peter Jackson, CEO, commented:
“Flutter’s performance in the third quarter exceeded our expectations in both sports and gaming. Our strong trading
continued as we grew market share in key regions while retaining our commitment to safer gambling practices. During
the quarter we continued to expand our recreational customer base while bringing our businesses together. Este
included the successful migration of the BetEasy customer base onto the Sportsbet platform in Australia ”.
Likewise, Jackson highlighted the importance of the growth of sports betting in the United States and anticipates that thanks to the improvements achieved in terms of the customer experience, as well as the establishment of strategic alliances, the group is aimed at “generating more US $ 1.1 billion GGR”, a “significant milestone for an online operator”.
In reference to global expansion, Peter Jackson said:
“We are in a unique position to respond to the many opportunities we see across our growing markets. Looking ahead, whilst the outlook with respect to Covid-19 remains uncertain, we are confident that our business is well positioned to capture further growth in a sustainable and responsible way.”
As reported by Flutter, regarding the new regulations in Germany, the new regulations have placed restrictions on certain casino games previously offered by the Group (table games), with new rules governing deposit limits also introduced. Further staking limit changes on slot games are expected to take effect from December 15th. Based on our current understanding of how the rules will be applied, we estimate that these changes will reduce contribution by £ 50m for the Group on an annualized basis.
Read full financial results