(Bloomberg) -- Flutter Entertainment, operator of US sports betting giant FanDuel, jumped to a record high in London trading after the company raised its full-year outlook and reported quarterly results that beat analysts’ estimates.
The company raised its guidance for sales and adjusted earnings before interest, tax, depreciation and amortization by 1% for 2024, reflecting stronger-than-expected results outside of the US, Flutter said in a statement on Tuesday.
Flutter, which moved its primary listing to New York earlier this year, said third-quarter revenue grew 27% to $3.25 billion, beating analysts’ projections of $3.03 billion. Adjusted Ebitda rose 75% to $450 million, beating estimates of $359.1 million.
Gambling companies like Flutter have been taking advantage of the surging demand for sports betting in the US, as more states have legalized the industry. Americans spent a record $119.8 billion on sports wagers in 2023, up 28% from 2022, and they are on course to spend significantly more in 2024, according to American Gaming Association figures.
Ahead of its investors day in September, Flutter authorized a share buyback program of up to $5 billion, while boosting its long-term outlook for the US gambling market by more than 50%. The company’s US revenue grew by 51% in the third quarter, according to the statement.
Shares rose 4.7% to 20,170 pence in London trading at 9:15 a.m. on Wednesday, a record high for the stock on the exchange. Shares had closed at $248.17 in New York before the results were reported on Tuesday.
Still, mirroring a report last week from rival DraftKings Inc., Flutter said sales in the fourth quarter have been hurt by less-favorable betting results.
In an interview, Chief Executive Officer Peter Jackson said sports betting operators across the board have been hurt by some results in the National Football League in October that caught bookmakers by surprise. Parlays, which combine several types of bets, have also paid off for bettors.
“The sports results have a bit tricky,” Jackson said. “It’s a great day for customers in football.”
He reiterated the company’s long-term goal of generating $21 billion in annual revenue by 2027. “We’ve got fantastic underlying momentum in the business,” he said.
The sports-betting pioneer’s performance follows a number of positive developments for the industry more broadly. This month, Missouri became the latest US state to legalize sports betting after a referendum passed by a narrow margin. A few weeks earlier, Flutter shares soared after a rumored gambling tax in the UK budget failed to materialize.
While the US-based FanDuel remains Flutter’s largest unit, the company has resumed international expansion. In September, the company agreed to buy Playtech Plc’s Italian gambling business for €2.3 billion ($2.6 billion) in cash. It has also reached a deal to buy a 56% stake in Brazil’s NSX for a cash consideration of about $350 billion.
(Updates with shares and additional context)
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