DUBLIN (Reuters) -Paddy Power, Betfair and Fanduel owner Flutter Entertainment cut its full year guidance on Tuesday after a run of Unfavourable sports results in October and a temporary exit from the Netherlands following a change in regulations there.
The world’s largest online betting group said it expects full-year adjusted EBITDA of between 1.24 billion pounds and 1.28 billion pounds compared to the 1.27 to 1.37 billion range it forecast in August.
It reported full year earnings of 1.4 billion pounds ($1.9 billion) in 2020.
A run of sports results favouring gamblers last month hit EBITDA by around 60 million pounds, Flutter said. Its temporary withdrawal from the Dutch market is expected to cost a further 10 million pounds.
New rules introduced in the Netherlands require gambling operators to apply for a new licence to offer online services to customers in the country.
Flutter said the suspension of its operations will cost a further 40 million pounds in 2022, assuming it recommences trading in the third quarter and its Dutch business breaks even in the second half as it invests to re-engage customers.
Flutter said on Tuesday that its third quarter revenue increased by 12% year-on-year on a constant currency basis, driven by a 13% rise in average monthly players and a strong performance in Australia and the United States.
Revenue in the UK and Ireland fell 5%, which Flutter said in part reflected a busier, high profile sporting calendar in the prior year.
The 85% growth in revenue in its market leading U.S. FanDuel compared to a surge of 159% in the first half as the Dublin-based group said it remained disciplined among a step-up in competition.
It added that FanDuel is now regularly experiencing staking levels on American Football Sundays that match its 2021 SuperBowl performance as gambling continues to takes off rapidly in the U.S. after a ban was lifted on sports betting in 2018.
Flutter, which said in August that it expected to turn a profit in the U.S. in 2023, expects to make an EBITDA loss of 250 million pounds to 275 million pounds there this year versus a previous estimate of 225 to 275 million pounds.
(Reporting by Padraic HalpinEditing by Keith Weir)
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