Flutter Entertainment PLC (LSE:FLTR) (LSE:FLTR) started Tuesday higher after it reported pro-forma first-half revenue of £3.1bn, up 30% year-on-year, as the sporting calendar normalised.
Customer volumes were similarly higher, with average monthly players up 40% over the six months compared to last year.
"The first half of 2021 exceeded our expectations,” said chief executive Peter Jackson. “Our global sports businesses benefitted from further enhancements to our products and the return to more normalised sporting calendars while we sustained our strong performance in gaming despite the challenging comparatives set last year.”
The Paddy Power and FanDuel parent reported a £77mln profit, including £276mln of amortisation charges against some acquired intangible assets.
Reported revenue and earnings (adjusted EBITDA) were up 99% and 75% respectively, with the year-on-year comparisons lifted substantially by the May 2020 acquisition of Canadian sports betting and online casino firm The Stars Group (NASDAQ:TSG, TSX:TSGI).
Flutter meanwhile told investors that the second half of the year has started well and, assuming an uninterrupted sporting calendar, it expects earnings of £1.27bn to £1.37bn in its operations, excluding the US.
Second-half US revenue is expected in the range of £1.28bn to £1.42bn, and a loss (negative adjusted EBITDA) in the range of £22mln to £275mln – with the forecasts assuming online gaming starting in the states of Arizona and Connecticut during the half.
Jackson highlighted: “In the US, we remain the number 1 online sports betting operator by some distance thanks to the quality of our products and the extensive reach of the FanDuel brand.
“The customer economics we are seeing in the US bode very well for the future, with early FanDuel customers generating positive payback within the first 12 months of acquisition. We remain absolutely focused on extending our sports product advantages and replicating our market share success in further states as they regulate.”
The Flutter boss, meanwhile, noted that its three brands (Paddy Power, Betfair and Sky Bet) are integrating well and he said that Australia’s Sportsbet saw a “phenomenal performance” with customer retention post-lockdowns suggesting a permanent “step change in scale”.
In London, Flutter shares were up 682p or 5.27% at £136.22.