Flutter Entertainment has seen its share price fall by over 3% in early trading, despite increasing its revenue guidance for the full financial year.
In its Q2 results, the Irish-American sports betting firm, which has a secondary listing on the London Stock Exchange, reached a total group revenue of $4.18bn, an increase of 16% year-on-year, while its EBITDA jumped by 25% annually to $919m on the three months to 30 June.
Flutter, which owns brands including Betfair, Paddy Power and FanDuel, recorded a 17% increase in US revenue, which included 11% growth in its sportsbook revenue and iGaming growth of 42%.
In its international division, revenue increased by 15%, while its UK and Ireland division recorded revenue growth of 1% after being impacted year-on-year by the Euros. However, iGaming growth in the region jumped by 17% in this period.
Chief executive officer at Flutter, Peter Jackson, said that he was pleased with the "excellent underlying performance" that the firm delivered, having made "good progress on a number of key strategic initiatives".
He added: "Revenue grew by 16% year-on-year, as we continue to build scale positions in the most attractive markets through strong organic growth and value creating M&A. Since Q1, Flutter gained additional US index inclusion and accelerated ownership of FanDuel to 100%.
"We also became the largest operator in Italy with the addition of Snai; established a scale position in Brazil through NSX; and successfully executed two transformative customer migrations. Such varied achievements in one quarter are a great reflection of our teams' focus and ability to execute effectively, leaving us well positioned for the second half of the year."
In its outlook, Flutter increased its full-year revenue guidance to $17.26bn from $17.08bn, while its EBITDA is set to total $3.29bn.
The firm said this represents year-on-year growth of 23% and 40% respectively.
Head of financial analysis at AJ Bell, Danni Hewson, stated that while its guidance has been increased, the firm has "struck out with investors".
She concluded: "These positive headlines do not tell the whole story as, apart from its US iGaming business and a strong contribution from international acquisitions, the company saw underwhelming growth across most regions.
"This suggests the company could be losing share in several markets, with overall growth in the US, for example, some way behind several of its peers."
Recent Stories