Flutter Entertainment has seen its revenue increase by 20% in the second quarter to £3.6bn, as it enters into talks to acquire the Italian arm of London-listed firm, Playtech, in a deal that could be worth up to £2bn.

In the three months to 30 June, the owner of Paddy Power saw its EBITDA increase by 17% to £738m year-on-year.

The firm said that its US execution had accelerated year-on-year, with revenue increasing by 39% as FanDuel remained the number one betting firm in the country.

Flutter said that its move to the New York market during Q2 reflected its "natural evolution" towards US business.

The group added that its performance in the UK and Ireland was "driven by continued momentum" in iGaming, a positive period during the Euros and "favourable sports results".

In a statement, the firm’s chief executive officer, Peter Jackson, said that the US performance was “excellent” in new and existing states, while its results outside of the US are giving “confidence to continue driving customer acquisition in the second half” of the year.

Head of money and markets at Hargreaves Lansdown, Susannah Streeter, added: "The first results from Paddy Power and FanDuel owner Flutter, since switching its primary listing from the LSE to the NYSE will provide a boost to investor confidence. Earnings beat expectations, led by strong growth in its US business, with net income more than tripling. Income rose by 39% in the US, with FanDuel sailing past the $1bn mark in revenues from its sportsbook.

"Its brands in the UK and Ireland were also boosted by a surge of activity during the Euros with 2.8 million customers placing bets. Some of them were probably washed down by a few pints after data from Kantar showed that £10m worth of beer was bought on the day of the final."

The figures come as Sky News reported that Flutter has entered in talks to discuss the acquisition of Playtech’s firm, Snaitech, for around £2bn

Despite the initial talks, a formal agreement is unlikely to be reached until at least next month.

In a statement, Playtech said: "Playtech notes the recent media speculation that it is in discussions with Flutter regarding the potential sale of the Snaitech business for a value that could be about £2bn.

"Playtech confirms it is in discussions with Flutter and has granted Flutter a period of exclusivity to complete due diligence and finalise the necessary transaction documentation.

"There can be no certainty that any transaction regarding the potential sale of the Snaitech business will ultimately be agreed, or as to its terms. Further announcements will be made as and when appropriate."

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