Flutter Entertainment Takes £60m Hit After Run Of ‘Customer Friendly’ Results In October
Author: Dean Carr
Last Updated: 10th March 2023
Flutter Entertainment, owners of the Paddy Power and Betfair brands, have revealed they took a £60m hit in the month of October following a run of sports betting results that heavily benefitted sports betting customers.
The results were in direct correlation with the recent dip in Flutter Entertainment shares, which fell 7.7% as a result and saw a reduction in their estimated annual profits from between £1.27bn to £1.37bn down to £1.24bn and £1.28bn.
Non-US operations were significantly knocked back following a string of customer friendly results throughout October. Those included Tyson Fury’s defeat of Deontay Wilder and Liverpool’s 5-0 thrashing of Manchester United, both of which are believed to have cost the bookies dearly.
Flutter Entertainment Chief Executive Peter Jackson said: “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% in just two years.
“With more international jurisdictions and US states on the path to regulation, we look forward to sustainably growing our global player base further in 2022.”
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Additionally, Flutter has placed blame on the change of regulations in the Netherlands for their recent slump, which is believed to have cost them around £10m. Revenue in the UK and Ireland has fallen 5% from the previous year, though they insist that is due to a more high-profile sporting calendar that was present at the same time last year.
However, they were somewhat saved by the success of their US operation, FanDuel, which has been an incredible success since the lifting of the ban of sports betting across the Atlantic.
The overall rise in their success is especially highlighted by the fact they are now taking in stake levels that match their previous Super Bowl numbers on regular NFL Sunday games. Their third quarter results highlighted a 12% rise in revenue that came as a result of their 13% spike in average monthly players.
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Harry Barnick, senior analyst at Third Bridge, said: “Consolidation is on everyone’s lips following DraftKings’ abandoned takeover of Entain.
“Investors will be wondering what part Flutter could play in the global M&A landscape.
“The US market continues to be a strategic growth area for Flutter with success in this market looking pivotal to the future of the company.
“As regulation opens up on a state-by-state basis, Flutter will be singularly focused on picking up licenses and growing market share in the US.”