Flutter Entertainment Plc (FLUT) shares soared in after-hours trading on Tuesday following the company’s impressive second-quarter financial report. The results surpassed analysts’ expectations, showcasing the company’s continued growth and strong performance in the U.S. market.
Flutter reported earnings of $2.61 per share, a significant increase from $1.67 in the same period last year. Revenue also climbed to $3.611 million, up from $3.001 million in the prior year. The company’s robust performance can be attributed to its strong U.S. presence, particularly in sports betting. Flutter holds a commanding market share in the U.S., with a total online gross gaming revenue (GGR) market share of 38%, including a sportsbook GGR share of 47%.
The company’s CEO, Peter Jackson, highlighted the impressive growth in the U.S. market. “Flutter delivered another strong quarter, beating consensus and increasing our revenue and Adjusted EBITDA guidance as we continued to capitalize on our global scale and the Flutter Edge. Our U.S. performance was excellent in new and existing states reflecting our disciplined approach to customer acquisition and our best-in-class product, which offers our sportsbook customers the best pricing in the market.” Jackson also pointed to the increasing popularity of live betting, noting that “we continue to make improvements to our proprietary product offering which drove the proportion of live betting handle to be more than 400 basis points higher than last year during the NBA playoffs, while we also increased our MLB parlay penetration.”
Looking ahead, Flutter is optimistic about its future performance. The company raised its fiscal year U.S. revenue guidance to a range of $6.05 billion to $6.35 billion and Group Ex-U.S. revenue to a range of $7.85 billion to $8.15 billion.
The strong earnings report by Flutter Entertainment had a ripple effect in the sports betting industry. Shares of DraftKings Inc. (DKNG), a direct competitor, dipped by about 5% in after-hours trading following Flutter’s release.
As of Tuesday’s close, Flutter Entertainment shares were up over 10%, trading at $210.88.
