Paddy Power owner records 32% rise in first quarter revenues to £1.5bn

Paddy Power owner says it is off to a strong start

A Paddy Paddy Power betting shop in London. The bookmaker is owned by Flutter Entertainment, which recorded a near one-third increase in its revenues in the first quarter of this year. Photograph: Andrew Redington/Getty Images

A Paddy Paddy Power betting shop in London. The bookmaker is owned by Flutter Entertainment, which recorded a near one-third increase in its revenues in the first quarter of this year. Photograph: Andrew Redington/Getty Images

 

Revenues at Paddy Power owner Flutter Entertainment grew 32 per cent to £1.485 billion sterling (€1.7 billion) in the first three months of the year, the company said on Thursday.

Dublin-based Flutter said that sports betting revenues grew 43 per cent to £896 million in the first quarter, while gaming increased 18 per cent to £589 million.

Revenues

The £1.485 billion total was one third more than the £1.126 billion in revenues that the gambling giant reported for the first quarter of 2020.

Peter Jackson, Flutter chief executive, said that the group, owner of Paddy Power, Betfair, Pokerstars and Fanduel, was off to a strong start. “We continued to significantly grow our global player base, which in turn drove a 42 per cent increase in our online revenue,” he added.

Mr Jackson said that the business was well placed to grow as Covid-19 restricttions eased and retail opened in a number of markets.

“We are continuing to consider our options with respect to a possible US listing of a small shareholding of Fanduel Group, ” he confirmed.

“No decision has been made at this time and we will update the market as appropriate.”

The group’s trading statement said that Fox Bet assets, including Poker Stars US, would “sit outside the perimeter of such a transaction”.

Claim

Fox this month filed an arbitration claim against Flutter saying that it has the right to buy an 18.6 per cent stake in Fanduel that values the Irish group’s US subsidiary at $11.2 billion (€ 9.2 billion), rather than at its potentially higher market worth

The dispute dates back to agreement the pair struck when Flutter announced its merger with The Stars Group in late 2019. The Irish company says the Fox claim is without merit.

Flutter continued to recruit customers during the first quarter. On average, it 7.7 million people bet on its companies’ and apps every month, 36 per cent more than the 5.6 million it reached during the same period in 2020.

The group said that Paddy Power’s app was the most downloaded during the Cheltenham jumps racing festival in March, while its brands accounted for 56 per cent of all those betting on the event.

Ireland and UK on-line revenues, which include Paddy Power, Betfair and Fox Bet, increaed 35 per cent to £568 million.

Covid-19 restrictions kept Flutter’s Paddy Power bookie shops closed in the Republic and UK during the quarter. They generated £71 million in revenues during the first three months of 2020.

Growth

This meant the overall Irish and British businesses grew 16 per cent in the first quarter of this year. UK outlets opened this month. The group says it has continued to pay betting shop staff in both jurisdictions.

US revenues increased 135 per cent to £288 million from £132 million. Flutter said that this business continued to expand rapidly.

Sports betting opening in Michigan and Virginia during the quarter while growth continued in states where the pastime has already been legalised.

Fanduel accounted for 91.6 per cent of US revenue while Fox Bet, including Poker Stars US, made up 8.4 per cent.

The US business had 1.6 million customers betting with it every month on average during the quarter.

In Australia, where Flutter owns Sportsbet, revenues rose 59 per cent to £279 million from £161 million.

Revenues from the group’s international business, which includes Adjarabet in Georgia, grew 7 per cent to £351 million.