Proactive Investors - Flutter Entertainment PLC (LON:FLTRF) shot up 12% as its US business FanDuel delivered results well ahead of expectations in its first quarterly update since departing the London Stock Exchange for New York.
Concerns about FanDuel’s half had followed a disappointing update from rival DraftKings after a run of losing results, but Flutter raised its guidance for the year highlighting its US arm.
Second quarter revenue at the Paddy Power and Betfair owner rose 20% to US$3.6 billion, with underlying profits up by 17% at US$738 million.
Guidance for the year is now for revenue to grow over the group by 20% and underlying profits by 34% at the mid-points.
Taxation, another US worry, will cost US$40 million net in the second half with reported US profits to rise by 4% to US$740 million.
Peter Jackson, chief executive, said it was a strong quarter, beating consensus and increasing our revenue and Adjusted EBITDA guidance.
“Our US performance was excellent in new and existing states reflecting our disciplined approach to customer acquisition and our best-in-class product, which offers our sportsbook customers the best pricing in the market.
The returns we are seeing give us the confidence to continue driving customer acquisition in the second half, building a bigger business, which bodes well for 2025 and beyond.
Outside of the US, we delivered an engaging offering during the European Football Championships, as over four million customers placed a bet on the tournament, with results during the tournament very favorable for us.”