Flutter Entertainment increased its earnings after it reported a surge in the year-on-year pro forma revenue to 30% in Q3 except for its UK and Irish retail divisions.
Analytic reports on the progress of performance of each Flutterwave‘s divisions show growth in revenue through the past three months totalling to about £1.33bn (€1.49bn/$1.76bn) from £1.04bn within the same period last year.
The growth in net profit was as a result of general work performance online during the lockdown and the compulsory work from home order during the COVID-19 pandemic.
The core Paddy Power Betfair saw an overall increase in business revenue reaching up to 9%, with sports revenue ranking at 5% and gaming revenue up to 31%, overseeing a raise to £351m on the year-on-year revenue.
Flutter explained that the rise in average daily customers was driven up to 51% and this was possible because of the launch of the ‘Unified Gaming Experience’ that offers an all-in-one casino content to consumers for Paddy Power and Betfair. However, in light of this, retail game revenue went up by 22%, although sports bet revenue fell by 9%.
Due to recreational customer growth and the strict rules placed on local gaming shops because of the pandemic, 97% of gaming sites remained open through the lockdown that lasted almost throughout the second quarter of the year, SBC gaming revenue had an increase to 27% in revenue in Q3. Flutter said the average daily customers were up to 44%, it also integrated a gaming platform with Sky Vegas which was the ‘Pokerstar Group Gaming Network’ expected to increase the speed and add more gaming contents for the delight of customers.
The operators also bagged a new agreement with Turner Sports and sports radio group Entercom to bring up new strategic media and marketing deals which were brokered through FanDuel business. Peter Jackson, Chief executive of Flutter said:
Flutter’s performance in the third quarter exceeded our expectation in both sports and gaming. Our strong trading continued as we grew market shares in key regions while retaining our commitment to safer gambling practices. During this quarter, we continued to expand our customer base, while bringing our businesses together.
Also, Flutter said over half of the margin reduction reflected strategic investments ahead as sporting activities are expected to resume fully soon. However, in hopes that there isn’t any disruption in sporting activities as the year ends, Flutter is looking forward to normalizing the net revenue margin and anticipates to make more than $850m in revenue due to the better-than-expected new customer volumes.
We are now a truly global business with significant value, as such, we are in a unique position to respond to many opportunities we see across our growing market.
Block Issue 5 is out:
The Block is a bi-annual publication which illuminates the cutting-edge sectors of AI, blockchain, crypto and emerging tech, with a print run of 5000 delivered to leading brands across the global industry. View our latest issue of the Block here.