Paddy Power owner Flutter Entertainment has today upgraded full-year revenue guidance for its fast-growing US business.
The company said that further momentum in the third quarter underpinned confidence that it will be profitable for the first time there next year.
The world's largest online betting firm said an 82% year-on-year jump in revenues in the US, where its FanDuel unit remained the number one operator, together with a recent Italian acquisition drove total revenues 31% higher in the quarter.
The Paddy Power, Betfair and PokerStars owner now expects full-year US revenue of $2.95 billion to $3.2 billion, up from a previous forecast of $2.85 billion-$3.1 billion.
But it still expects a $300-$360m core earnings loss in the US this year.
It also retained its full-year group core profit guidance of between £1.29 billion and £1.39 billion following continued Irish retail store weakness and the cancellation of some sporting fixtures in the UK during the quarter.
In a trading update for the three months to the end of September, Flutter said its group revenues rose to £1.891 billion from £1.439 billion the same time last year, with its US revenue hitting $700m.
In the US, Flutter said that FanDuel remains the biggest sportsbook operator with 42% share of the online market in the third quarter.
It noted that sports revenue was 106% ahead and sportsbook revenue grew 150% on the back of strong customer acquisition across existing states as the NFL season began, as well as the addition of six new sportsbook states.
In its retail division in Ireland and the UK, Flutter said that revenue was 3% lower with reduced footfall due to the hot summer weather.
In Ireland, it said that revenue was in line with the previous year but remained 27% lower than 2019 due to continued low footfall from changes in working patterns, while in the UK revenue declined by 4% but was 5% ahead of the pre-Covid level of 2019.
In Australia, it said its Sportsbet business delivered good player retention levels despite challenging Covid comparatives.
Revenue declined by 21% reflecting lower levels of player engagement compared to last year when more than 60% of the country was in lockdown, combined with high levels of weather-related racing disruption.
Peter Jackson, Flutter's chief executive, said the company delivered a strong Q3 performance with pro forma growth of 11% in both revenue and average monthly players.
"We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over 1 million players on a regular NFL Sunday. In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season.
"The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023," he added.
"We were delighted with the successful outcome of our arbitration process with FOX regarding the price of their option to acquire 18.6% of FanDuel. This vindicates our position on the matter, with FanDuel valued at $20 billion based on its fair market value at 3 December 2020 and provides important clarity on the significant cost required to buy into the number one US gaming business," Mr Jackson said.
"As we look ahead our product and geographic diversification, as well as our recreational customer base, position us well for future growth," he added.
Shares in the company were lower in Dublin trade today.
