Paddy Power, Betfair and Poker Stars owner Flutter Entertainment has today upgraded its full-year earnings guidance after strong customer growth across all key regions boosted third quarter revenues by 30%.
Flutter said its third quarter performance exceeded its expectations in both sports and gaming.
The world's largest online betting group expects full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of £1.275-1.350 billion, up from the £1.175-1.325 billion forecast in August.
That excluded its heavy investment into the United States, where an EBITDA loss of £160-180m is expected for 2020, also up on the £140-160m previously flagged.
Flutter raised £800m in May to drive growth as more US states relax betting rules and said today that its FanDuel and FoxBet brands retained their market leading positions with a 46% share of online sports betting.
New US customers grew at a better than expected rate and average daily group customers were up 41% year-on-year.
Revenues grew by 76% year-on-year in Australia and by 14% in its mainly Britain and Ireland-based Paddy Power and Betfair online division.
After a jump in poker and gaming players in the first half more than compensated for a two-month global sports shutdown earlier in 2020, revenue trends at PokerStars returned to normal in the third quarter
The Covid-19 pandemic called a near total halt to all sports events for two months from mid-March, with some like the 2020 European Championships postponed by a year. Flutter said its improved outlook assumed no further material disruption.
In today's trading update, Flutter said its revenues rose to £1.325 billion in the three months to June from £1.042 billion the same time last year.
Its average daily customers growing by 41% globally with double digit growth across all its key regions
It said that after the lifting of Covid-19 related restrictions, it re-opened all of its bookie shops in both Ireland, where it has 266 shops - and its 357 shops in the UK.
Due to the imposition of certain localised restrictions, it said that 97% of its shops were open on average during the three month period.
The company said that total revenue in its PPB Retail division declined 2% as Covid-related social distancing measures remained in place.
It noted that its Irish customers have been slower to adapt to the new trading environment with revenue declining 21% in the quarter.
But in the UK, it saw strong gaming growth of 22% year-on-year, resulting in revenue growth of 15% as it continued to benefit from some competitor shop closures and reduced trading hours.
Paddy Power's online revenue grew 14% in the quarter with increases of 5% in sports and 31% in gaming, Flutter added.
Shares in the company moved higher in Dublin trade today.
