Paddy Power owner ups earnings guidance as betting customers grow

New US customers grew at a better than expected rate and average daily group customers were up 41% year-on-year.

Paddy Power owner Flutter Entertainment upgraded its full-year earnings guidance after strong customer growth across all key regions boosted third-quarter revenues by 30%.

The world's largest online betting group expects full-year earnings before interest, tax, depreciation and amortisation (EBITDA) of €1.44m to €1.52m which is an increase on the forecast from August.

That excluded its heavy investment into the United States, where an EBITDA loss is expected for 2020.

Flutter raised €900m in May to drive growth as more US states relax betting rules and said on Wednesday its FanDuel and FoxBet brands retained their market-leading positions with a 46% share of online sports betting.

New US customers grew at a better than expected rate and average daily group customers were up 41% year-on-year. Revenues grew by 76% year-on-year in Australia and by 14% in its mainly Britain and Ireland-based Paddy Power and Betfair online division.

After a jump in poker and gaming players in the first half more than compensated for a two-month global sports shutdown earlier in 2020, revenue trends at PokerStars returned to normal in the third quarter The COVID-19 pandemic called a near total halt to all sports events for two months from mid-March, with some like the 2020 European Championships postponed by a year. Flutter said its improved outlook assumed no further material disruption.

-Reuters