Gambling giant, Flutter Entertainment reported strong revenue growth for the fourth quarter of 2023, sending its share price soaring high on Thursday.
As reported by the Racing Post, the trading update was a very positive one for the Irish company, with the news propelling an increase of almost 15% in its share price, up to 15,160p.
The parent company is a major gambling operator that owns heavyweight brands including Paddy Power, Betfair, Sky Bet, Poker Stars, and Fan Duel.
Flutter has a significant presence within the betting industry in the United Kingdom and Ireland, with its strength reflected in its listing on the London Stock Exchange. The company also operates in other markets such as the United States and Australia.
The revenue growth was said to be helped in part by a bad run for favorite backers in horse racing.
Its fourth-quarter results increased revenue to £2.67 billion, representing an 11% increase and for the full year, an increase of 24% up to £9.5b.
Specifically, UK and Ireland revenues were boosted by 19%, up to £647m in the fourth quarter.
Customer impacts, company gains
Flutter’s chief executive Peter Jackson spoke to the Racing Post on the context of the gains.
He stated, “From a racing perspective the big deal was the poor number of favorites winning in the fourth quarter, which is something that really impacted our customers.”
“In December I think it was one of the lowest ever recorded months for winning favorites, 32% When the €850 horse Hewick won the King George at Kempton we were very relieved,” added Jackson.
This upturn for Flutter was announced as it prepares to launch a secondary listing on the New York Stock Exchange. In the US, the company enjoys a 43% market share with FanDuel, the number one sportsbook.
Flutter’s overall US revenue increased by 19% over the fourth quarter of 2023, up to £1.14bn and that was despite a £270 million hit from customer-friendly sports results, particularly impacted by NFL outcomes in November.
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