Flutter Entertainment, the parent company of Paddy Power, has reported a significant surge in profits and user figures for the quarter ending June. This comes as the company’s first financial statement since transferring its primary stock market listing and operational base to the United States. The gambling behemoth indicated a more than four-fold increase in net profits to $297 million (€270 million), up from the same time last year in the second quarter. Average Monthly Players (AMPs), a vital gambling industry measure, also increased by 17%. Meanwhile, revenue soared by 20% reaching $3.6 billion.
According to their CEO Peter Jackson, these results demonstrate Flutter’s powerful quarter, outperforming predictions and prompting an increase in revenue and adjusted EBITDA outlook. He highlighted the promising returns the company has gained, fuelling the firm’s strategy for customer acquisition throughout the second half and expanding their business, a positive for 2025 and onwards.
The results revealed the reason behind Flutter’s decision to move from Ireland to the United States. Among their brands is FanDuel, the US giant, which generated around $1.5 billion revenue from their US operations in the second quarter, with AMPs also increasing by 27% from the previous year. This growth is believed to continue as more US states legalise gambling: with 30 out of the 38 states allowing online wagering since the nationwide sports betting ban was abolished by the US Supreme Court in 2018.
Following their formidable second quarter, Flutter is predicting full-year US revenue to be between $6.05 billion and $6.35 billion with adjusted EBITDA ranging from $680 million to $800 million. In case of the non-US businesses, the firm foresees revenue ranging between $7.85 billion and $8.15 billion whereas adjusted EBITDA is projected between $1.69 billion and $1.85 billion.
Flutter saw revenue growth of 18% in the UK and Ireland, attributed to sports betting increasing by 12% and a 25% rise in online gaming.
Growth in sportsbook revenue was boosted by the Euros, contributing to 10 per cent of the sportsbook stakes for the period, and significantly, a general increase of 170 basis points in our sportsbook net revenue margin to 14 per cent, stated Flutter. They further added, that there was a decrease of 1 per cent in sportsbook stakes owing to the high sportsbook net revenue margin which affected the staking volume.
The company indicated the rise in margins was influenced by an upshift in their structural revenue margin, as there was a surge in the use of a specific type of wager commonly known as the ‘same game parlay’. This wagering style allows gamblers to place multiple stakes on a single game. They also enjoyed more favourable sports results compared to the previous year, with an increase of 110 basis points. The Euros had a particularly positive effect, accounting for almost half of the quarter’s results benefit, the company mentioned.