Flutter Shares Rise as Paddy Power Sees Strong US Demand

Flutter Entertainment, the parent company of Paddy Power, Betfair, and Pokerstars, saw its shares rise by 10.6% to £162.05 on Wednesday morning, making it the top performer on the FTSE 100 Index. The Dublin-based firm attributed this surge to a strong performance in the last quarter, driven by favorable sports results and a significant increase in turnover, which rose by 22% to $3.6 billion (£2.8 billion) for the three months ending June 30. The company's revenue growth was particularly robust in the United States, where it soared by 39% to $1.5 billion. Outside the US, Flutter's sales increased by approximately $180 million to $2.1 billion, bolstered by events like the Indian Premier League and European Football Championships, which attracted more bettors. The average monthly players on Flutter's platforms also grew by 17% year-on-year, reaching 14.3 million. In light of this performance, Flutter has raised its annual sales expectations for the US to between $6.05 billion and $6.35 billion, alongside adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) projected at $680 million to $800 million. This is an increase from previous forecasts, reflecting the company's strong market position. Flutter's latest results mark the first since its primary listing moved from the London Stock Exchange to Wall Street in May, a strategic decision aimed at capitalizing on the expanding US sports betting market, which has grown significantly since the Supreme Court's 2018 ruling that allowed states to legalize the practice. CEO Peter Jackson highlighted the company's disciplined customer acquisition strategy and superior product offerings as key factors in their success.