Flutter unphased by punter’s October purple patch

Flutter Entertainment financials
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Flutter Entertainment has cut its full year profit guidance after punters enjoyed a winning streak in October, but the future still looks bright for the world’s largest operator.

 

The Paddy Power, Betfair and FanDuel owner said it expects a full-year adjusted EBITDA of between £1.24 billion and £1.28 billion, compared to the £1.27 to £1.37 billion range it had forecast in August. Generally speaking, bookmakers suffer when favourites win, and Flutter chief executive Peter Jackson said this happened across the board last month; Liverpool hammered Manchester United and Tyson Fury claimed his latest victory, slashing Flutter’s EBITDA by around £60m. Jackson said Flutter avoided another “bloodbath” when favourite Incentivise came second in the Melbourne Cup.

“It’s what happens, occasionally you have a run of bad luck and it’s not unhelpful for our punters that they get to see a winning streak,” he remarked.

While Flutter’s share price took a hit, the bookmaker won’t be too upset as its 2021 third quarter revenue increased by 12 percent year-on-year, driven by a 13 percent rise in average monthly players and a strong performance in Australia and the US.

“While a run of customer-friendly results in October have resulted in win margins being below expected levels in the quarter to date, the underlying strength of our business is clear; we have grown our online recreational player base by 46 percent in just two years,” concluded Jackson.


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