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Paddy Power owner's revenues soar ahead of £10bn Stars Group merger
7th November, 10:49Paddy Power owner Flutter Entertainment saw revenues jump in the third quarter on the back of improving sales in the US and Australia.
The gambling group, which also owns Betfair, raised full-year earnings guidance for its US business but held firm on its targets for the rest of the group.
The Dublin-based betting company, which last month agreed a £10 billion merger with PokerStars owner Stars Group, said revenue surged by 10% to £533 million for the three months to September.
Flutter said sports revenue leapt by 11% during the period, while gambling revenue increased by 8%.
It highlighted strong performances in Australia, where Sportsbet revenues grew 19%, and the US, where total revenues soared 67%.
Revenues for the company's retail betting business slid 9% to £75 million after gaming revenues were hit by the recent crackdown on fixed-odds betting terminals (FOBTs), which saw the maximum stake for bets cut from £100 to £2.
Shares in Flutter sank earlier this week after a group of MPs called for similar restrictions on stakes for online gambling.
Flutter said online sports betting also declined, falling 6% as it failed to match strong revenues from 2018 due to the men's football World Cup.
Chief executive Peter Jackson said: "The third quarter was important for the group, with revenues up 10% and the announcement of our combination with the Stars Group.
"We believe that this deal will accelerate delivery of all of our core strategic objectives and we are very excited about the international growth prospects for the combined group.
"Both the Paddy Power and Betfair brands continued to make good progress in building more recreational customer bases through enhanced responsible gambling measures.
"While revenues in the quarter were impacted by this ongoing work, we remain confident that the changes being made will improve the sustainability of future growth and lead to a more diversified customer base for both brands."