The bright green Paddy Power signage
Flutter Entertainment Plc shares soared as much as 11pc in extended trading in the US after the company, the operator of the FanDuel online sportsbook and the Paddy Power brand in Ireland, reported second-quarter sales and profit that beat analysts’ expectations.
Flutter, which recently moved its stock listing to the New York Stock Exchange from London, generated revenue of $3.61bn (€3.27bn) in the quarter, exceeding estimates of $3.37 bn. Adjusted earnings rose to $2.61 a share, exceeding expectations of $1.70.
The company, which also moved its operational headquarters to New York, raised its guidance for US full-year revenue to as much as $6.35 bn and expects US earnings of up to $800 million before interest, taxes, depreciation amortization.
The company is benefiting from a surge in new customers and revenue, particularly in the US, where average monthly players rose 27pc to 3.47 million and sales climbed 39pc to $1.53 bn.
In an interview with Bloomberg News on Tuesday, Chief Executive Officer Peter Jackson said Flutter didn’t plan to match rival DraftKings Inc. in introducing a player surcharge in high-tax states such as Illinois.
Shortly afterward, DraftKings posted a statement on the social media site X that it would no longer pursue the surcharge.
Shares of Flutter traded as high as $211.80 in late trading after the results were announced. DraftKings lost as much as 6.4pc to $29.44, before recovering.
Despite the move to New York, a reflection of the dramatic growth of the FanDuel business, Jackson said he had no plans to rename the company FanDuel or pursue an initial public offering of that business, something he once considered.
Flutter has been in the news recently as a possible acquirer. The news site Next.io reported the company made an offer for the Brazilian online betting business Betnacional. Jackson declined to say specifically if that was true but said mergers are a part of the company’s strategy to build “podium positions” in local markets.
Asked about reports he might join a bid for ESPN Bet-parent Penn Entertainment Inc., Jackson said Flutter’s name gets floated often when merger rumors fly and that “some of the best deals are ones we haven’t done.”
(Bloomberg)
