Flutter Entertainment has highlighted the ‘excellent momentum’ of its new US wagering assets, after its Q3 revenues continued to ‘exceed expectations’ with a 67% increase during the quarter.
Publishing its interim trading report for the three months ended September 30, Flutter highlighted FanDuel as the group’s standout performer.
Flutter’s US expansion has continued to gather pace during 2019, following the launch of five FanDuel sportsbook properties during Q3, including two online sportsbooks in Pennsylvania and West Virginia and three retail sportsbooks across Iowa, New York and Indiana.
The results explained: ‘On October 22nd, we launched our online sportsbook in Indiana and while it is still very early days, we have been encouraged by our performance there to date. Overall US active customer growth is currently running ahead of our expectations. We have now acquired over 250,000 online sportsbook customers.’
The group reported a 55% increase in revenues, recorded as £76m ($97.8m) as the governance underlined FanDuel’s position as the ‘clear market leader in New Jersey’.
Commenting on the Q3 results, Flutter Entertainment Chief Executive Peter Jackson explained: “In the US, FanDuel has now launched online sports betting in Pennsylvania, West Virginia and Indiana and we have been very encouraged by progress to date.
“Published market share data in Pennsylvania shows that FanDuel quickly became the market leader with around 50% share while we remain the clear number one operator in New Jersey also. Notwithstanding the substantial investment we are making, our strong customer and revenue momentum means that we are raising our full‐year guidance in the US“.
Closing Q3 2019 trading, Flutter maintains its full-year EBITDA guidance at £420-440 million. However ‘better‐than‐expected’ US results see the FTSE betting group decrease its US EBITDA losses to £40-45million range versus its previous expectation of £55 million.
In addition to its sportsbook growth, Flutter also recorded a 174% jump in casino revenues as the group continues its expansion across the regulated market.
Flutter expressed hope of further successes across the US, highlighting that the group’s ‘expected loss in the US this year is likely to be lower than previously guided. We now expect to incur a US EBITDA loss of £40‐45m in 2019 versus our previous expectation of £55m.’
The group also expressed hope in its merger agreement with The Stars Group agreed earlier this year.
Jackson continued:”Q3 was an important quarter for the Group with revenues up 10% and the announcement of our combination with The Stars Group. We believe that this deal will accelerate delivery of all of our core strategic objectives and we are very excited about the international growth prospects for the combined group.