Paddy Power Betfair parent delivers revenue growth of 16% in first ...

Paddy Power Betfair parent Flutter Entertainment delivered revenue growth of 16 per cent to $3.4 billion (€3.2 billion) in the first quarter of 2024, its results published on Tuesday show.

The betting giant, which moved its primary listing from Dublin to the United States in recent weeks, said sports results had a negative impact of about five percentage points on its revenue growth in the three months ended March 31st.

It put the increase in revenue down to the continued growth of its US business, where revenue increased 32 per cent, as well as strong iGaming momentum in Britain and Ireland. The group’s overall revenue in Britain and Ireland increased by 17 per cent.

It further said the addition of Serbian sports betting operator MaxBet added $47 million, or two percentage points, to group revenue growth year-on-year.

The group reported a net loss for the quarter of $177 million after recording non-cash expenses. The higher loss in the period increased loss per share by $0.52 to $1.10, and decreased adjusted earnings per share by $0.59 to $0.10.

Flutter said the strong revenue momentum, combined with a 310 basis point expansion on its adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin, was driving a “transformation” of earnings with adjusted EBITDA up 46 per cent to $514 million.

The margin growth was primarily driven by operating leverage in its sales and marketing expenses in the US and international segments.

The group’s net cashflow provided by operating activities increased $386 million to $337 million driven by the strong operational performance and the year-on-year movement in US player deposits.

Adjusted free cash flow of $157 million was $207 million higher than the prior year due to adjusted EBITDA growth and working capital movements.

Flutter chief executive Peter Jackson said the company has had “an excellent start” to the year.

“In the US, FanDuel’s top line momentum is translating into strong growth in US adjusted EBITDA and market share gains,” he said.

“We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment.

“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.”

Mr Jackson said the group also reached “an all-time record” in April in terms of market share in Italy with online sports betting and the iGaming market.

On the shareholder decision to move the company’s primary listing to the US, he said this was “the natural home” for the group, and that it looked forward to this becoming effective on May 31st.

“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.

Flutter said it remains confident in its previous guidance for the coming year, which remains unchanged, despite unfavourable US sports results in last two weeks of March.

Total debt decreased to $6.8 billion from $7.1 billion at the end of last year, while net debt was broadly in line at $5.7 billion from $5.8 billion.

The company refinanced existing debt with the successful placement of over $1 billion in secured senior notes on April, 29th, which mature in 2029.

Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phoneFind The Irish Times on WhatsApp and stay up to dateOur Inside Business podcast is published weekly - Find the latest episode here