Flutter Entertainment, the world's largest online betting company, has today reported a 46% rise in first quarter adjusted core profit.
The Paddy Power owner also kept its guidance for the full year despite unfavourable US sports results slowing growth in March.
Flutter had previously reported a 56% rise in US revenue for the first 11 weeks of the year, but that fell to 32% for the quarter as a whole following a "significant swing" in gamblers' favour at the March Madness college basketball tournament.
That cost the company $76m and contributed to its 16% increase in group revenue to $3.4 billion falling below the $3.57 billion expected by analysts. Flutter's shares were 3% lower in early trading.
Flutter had forecast that its core profit would jump by around 30% this year thanks to a four-fold rise at its fast- growing US brand FanDuel, which increased its leading share of the sports betting market to 47% in the quarter.
It swung to a $26m first quarter core profit in the US compared to a loss of $53m in the same period last year, with profits in the rest of the world, which include the Paddy Power and Betfair brands, up 20% to $488m.
Flutter said its most recent state launch in North Carolina was its second most successful since the 2018 US nationwide lifting of a ban on sports betting, with 5.3% of the adult population signed up as a FanDuel customer in the first 45 days.
Flutter also announced today it has moved its operational headquarters to New York ahead of its primary stock market listing shifting there at the end of the month, saying it reflected the importance of the US market.
Chief executive Peter Jackson told Reuters that its previous headquarters in Dublin would become the company's international hub and that it was committed to Ireland, where it will remain incorporated and tax resident.
The move will have no impact on jobs in Dublin, he added.
Peter Jackson also said that trading had been going well since the end of the first quarter.
He said FanDuel's top line momentum in the US is translating into strong growth in US Adjusted EBITDA and market share gains.
"We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment," he said.
"Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK where the launch of Super Sub on Paddy Power has been our most successful product launch to date, and in Italy where we have been taking online sports betting and iGaming market share during Q1 and reached an all-time record in April," he said.
"On May 1, shareholders voted to move our primary listing to the US. We believe a US primary listing is the natural home for the group and we look forward to this becoming effective on May 31," the CEO said.
"With a greater proportion of the group's future profits expected to be generated in the US, we have moved our operational headquarters to New York reflecting the importance of the US sports betting and iGaming market to our business," he added.
Earlier this month, Flutter shareholders overwhelmingly backed the transfer of its listing to New York at its AGM in Dublin. The move means the company will drop out of the FTSE100 index.
Flutter had delisted from the Irish stock exchange, Euronext Dublin, and listed on the New York Stock Exchange instead earlier this year.
