Paddy Power-owner Flutter Entertainment reported a strong quarter between July and September with revenue up significantly and losses cut in half compared to last year.
According to the company’s latest quarterly financial update, revenue for this period stood at $3.25bn (€3bn) — up 27% year-on-year — with earnings before deductions increasing 74% to $450m.
Average players per month increased by 16% to just 13 million.
Flutter’s revenue growth was driven by a strong start to the NFL season in the US along with new products which saw revenue in that region increase by 51% year-on-year.
Revenue generated outside of the US was up 15%.
However, while the company posted a strong performance over the three month period, it still reported a loss of $114m year-on-year — which is 56% lower than the $262m reported last year.
The net loss included the non-cash impacts of an €128m amortisation charge as well as a $121m fair value loss on Fox Option liability. Fox in the US has an option to acquire an 18.6% equity interest in the company’s FanDuel company — gains and losses in this area fluctuates with the value of FanDuel.
Chief executive of Flutter Peter Jackson said the company had an “excellent quarter” with revenue growth “well ahead of market expectations”.
“In the US, we had a fantastic start to the new NFL season with peak wagers per minute already higher than Super Bowl LVII. Outside of the US, all divisions delivered a strong performance in the quarter as they leveraged the benefits of the Flutter Edge,” he said.
The company said that given its strong performance over the quarter it raised its guidance for the remainder of the year.
Outside of the US, the company is expecting revenue for the year to between $8.1bn and $8.3bn with adjusted earnings between $1.77bn and $1.87bn. Previous revenue guidance was between $7.85bn and $8.15bn while earnings was expected to be between $1.69bn and $1.85bn.
In the US, the company has narrowed its earnings guidance with revenue expected to range from $6.05bn to $6.25bn — previously between $6.05bn and $6.35bn — while earnings are now expected to range from $670m to $750m.