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Flutter Entertainment PLC on Tuesday said that its net loss had widened in the first quarter, though a particularly successful revenue performance in the US gave credence to the upcoming transfer of its primary listing to the US.
Flutter Entertainment, formerly Paddy Power Betfair, is a Dublin-based sports betting and gambling company, whose subsidiaries include Betfair, Tombola and Sportsbet.
For the three months ended March 31, Flutter reported a net loss of $177 million, widened from a $111 million net loss in the first quarter of 2023.
Flutter said the decline in net income was due to non-cash charges of $356 million, $172 million of which stemmed from intangibles amortisation, and $184 million relating to the change in the fair value of its Fox Option liability.
Revenue totalled $3.40 billion in the quarter, up 16% from $2.92 billion a year prior.
Adjusted earnings before interest, tax, depreciation and amortisation for the period were $514 million, up 46% from $352 million.
Adjusted earnings per share sank 85% to $0.10 from $0.69.
Average monthly players increased 11% from the previous first quarter to 13.7 million from 12.3 million.
Flutter said that business in the US was particularly strong during the period, with average monthly players up 15% and revenue rising 32%.
The company expects the movement of its primary listing to the US to become effective on May 31. Flutter shareholders voted in favour of the move in early May, and the company said the transition reflects ‘the importance of the US sports betting and iGaming market to our business’.
Chief Executive Officer Peter Jackson hailed the results as ‘an excellent start to the year’.
As a result, the company is confident in achieving its guidance for the full year as provided in March.
Flutter expects US revenue to land at around $6.0 billion, representing annual growth of 36%, with US adjusted Ebitda expected to triple to $710 million.
Excluding the US, Flutter forecast $7.85 billion in revenue and $1.73 billion in adjusted Ebitda, equating to increases of 6.3% and 5.4%, respectively.
Shares in Flutter Entertainment were down 2.0% at 15,875.00 pence each in London on Tuesday morning.
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