Flutter Entertainment, the owner of gambling operators like FanDuel, Paddy Power, and Betfair has seen its shares fall as much as 9.4%, following its Q3 revenue reports. Despite posting revenues of £2.04 billion (~US$2.5 billion), this fell below estimates from many industry experts of £2.15 billion (~US$2.64 billion).
The decline of 9.4% marked the worst intraday decline for the company since March 2022. Before the announcement today, Flutter stock had been up 21% this year.
One key factor in Flutter missing its predicted earnings was the disappointing performance in sports betting. Q3 sports results were unsurprising, which is more favorable for bettors rather than sportsbooks. This is estimated to have cost the company £50 million (~US$61.43 million).
Other factors include a change in taxes in India, poor performances in the Australian horse racing market, and currency exchange rates. The latter of these is considered to have cost Flutter Entertainment £30 million (~US$36.86 million).
Despite this, CEO Peter Jackson spoke of “another strong quarter”, citing growth of 13% pushing the company to above $2 billion in revenue. He also highlighted “16% growth in average monthly players” as an indicator of the company’s success.
Flutter Entertainment expects full-year Earnings Before Interest, Taxes, and Amortization (EBITA) to be £140 million (~US$172.01 million) in the US. Experts estimated a range of between £90 million (~US$110 million) and £190 million (~US$233 million). Outside of the US, its adjusted earning forecast is at £1.44 billion, at the lower end of many predictions.
All of this comes amid plans from the company to list on the New York Stock Exchange (NYSE) to raise its profile. Already, Flutter Entertainment is on the London Stock Exchange, where its prices fell as low as 12,460 pence at 8:20 am.
The company has submitted its application with the US Securities and Exchange Commission, and has shareholder approval to list in the US. If the company does begin trading on the NYSE, it will de-list on the Euronext Dublin at roughly the same time.
