Flutter boosts revenue ahead of £11bn Stars merger
Gambling operator Flutter Entertainment boosted revenue 10 per cent in the third quarter ahead of its £11bn merger with Stars Group.
Flutter – previously Paddy Power Betfair -said revenue in the quarter to 30 September rose 10 per cent to £533m.
The company also upped its profit guidance for its US business after revenue grew 67 per cent.
Read more: Flutter shares jump on £11bn merger with Stars Group
Its US arm is now expected to post a full-year earnings loss of £40-45m versus previous expectation of £55m.
Revenue in the group’s online business fell one per cent which the company ascribed to a combination of responsible gambling measures and international market switch offs.
This week a cross-party group of MPs called for the introduction of a maximum £2 stake for online casinos, casting a pall over the online gambling sector.
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Analysts at Peel Hunt said: “While regulatory uncertainty hangs over the sector, we believe it is unlikely the shares will make progress.”
Last month Flutter agreed to merge with Toronto-listed Stars to create one of the world’s largest gambling businesses.
Flutter chief executive Peter Jackson said: “Q3 was an important quarter for the group with revenues up 10 per cent and the announcement of our combination with The Stars Group. We believe that this deal will accelerate delivery of all of our core strategic objectives and we are very excited about the international growth prospects for the combined group.”
Flutter’s share price fell 0.4 per cent to 7,996p.