DUBLIN Flutter expects full-year earnings excluding the nascent U.S. market to be at the bottom of its previously forecast range, the world's largest online betting company said on Thursday as it reported an 8% year-on-year rise in third-quarter revenue.
Flutter said in August that it expected full-year adjusted ex-U.S. core profit to rise to between 1.44 billion and 1.6 billion pounds ($1.77 billion to $1.97 billion). Since then, sports results have been "very customer-friendly", it said.
The Paddy Power, Betfair and Fanduel owner became the first online betting operator to turn a profit in the U.S in the first half and said on Thursday that, despite ongoing investment, it expects full-year U.S. earnings of 140 million pounds versus its previous estimate of 90 million to 190 million pounds.
Rival 888 Holdings lowered its annual core profit expectations in September after a 10% decline in third-quarter revenue while Ladbrokes owner Entain also warned on annual and third-quarter online net gaming revenue.
Flutter's gaming revenue far outperformed sports betting in the quarter. Overall revenue in its largest division, U.S. market-leading brand Fanduel, rose 12% year on year or 20% on a constant currency basis, compared with first-half growth of 71%.
Revenue increased by 16% in its international division, led by Italian market leader Sisal. UK and Ireland revenue was up 11% and Flutter said it continued to take market share online and in retail shops.
Reported revenue fell 18% in Australia, where weakness in the horse racing market is expected to continue into 2024, resulting in an estimated mid-single digit decline in the overall Australian market, Flutter said.
The Dublin-based group also announced plans to delist from Euronext Dublin when it adds a New York listing in the first quarter of 2024. It had expressed hopes of staying in Dublin alongside its primary London listing but said on Thursday that keeping two listings would "minimise regulatory complexities".
It is the latest blow for the Irish bourse after building materials giant CRH left for New York in September and Smurfit Kappa prepares to follow suit as part of an $11 billion deal to buy U.S. rival WestRock.
($1 = 0.8139 pounds)
(Reporting by Padraic Halpin; Editing by Mark Potter and David Goodman)