Flutter upgrades full-year forecast as FanDuel steals the show

Paddy Power and Betfair owner Flutter has hiked its earnings outlook after the group’s FanDuel-led US business helped drive a better-than-expected recent performance.

The world’s largest online sports betting and iGaming group said revenues jumped 16% to 4.19 billion US dollars (£3.12 billion) in its second quarter, while underlying earnings surged 25% higher to 919 million US dollars (£683.3 million).

Flutter said annual revenues and underlying earnings are now expected to be 17.26 billion dollars (£12.83 billion) and 3.3 billion dollars (£2.45 billion) – up 23% and 40% respectively.

It had previously guided for revenues to rise to 17.08 billion dollars (£12.7 billion) and earnings to 3.18 billion dollars (£2.36 billion).

Flutter hailed an “excellent” quarter, thanks largely to its US business, led by dominant market player FanDuel.

The group’s US division notched up 17% revenue growth and delivered 400 million dollars (£297 million) in adjusted earnings in the three months to June 30.

It now has full ownership of FanDuel after buying the remaining 5% holding in the business it did not already own last month.

FanDuel has rapidly grown in recent years on the back of easing sports betting rules in US states, after first investing in the firm in 2018.

But in the UK and Ireland, second quarter revenues fell 5% on a constant currency basis, up 1% reported, to 936 million dollars (£696 million).

It was impacted by unfavourable sports results and as it came up against tough comparatives from a year ago, which were boosted by the Euros football championship.

Flutter cheered an impressive quarter for iGaming in the UK and Ireland, with revenue growth in the division jumping 17% higher, up 10% on a constant currency basis.

In terms of sports betting events, it said Rory McIlroy’s win at The Masters – completing a career Grand Slam – was its biggest golf event ever.

The group said betting went in its favour due to McIlroy’s win over US fan favourites Bryson DeChambeau and Scottie Scheffler on the final day.

Flutter also took more than four million bets during an “epic” French Open, with the men’s final the highest-staking tennis match in its history, before notching up another record with the Wimbledon men’s final.

The French Open ladies tennis final, where Coco Gauff beat world number one Aryna Sabalenka, was the highest-staking women’s match of all time, according to Flutter.