Flutter Swung to 1st Half Pretax Loss on Higher Costs; Revenue Rose -- Update
By Joe Hoppe
Flutter Entertainment PLC said Friday that it swung to a
first-half pretax loss due to higher operating and sales costs,
though revenue rose and the second half has begun well.
The FTSE 100 gambling group posted a first-half pretax loss of
51.4 million pounds ($62.7 million), compared with a profit of
GBP77.0 million a year prior, after a GBP286 million charge for
amortization of acquired intangibles.
Revenue rose 11% to GBP3.39 billion, from GBP3.05 billion a year
before, driven by a 14% increase in average monthly players to 8.7
Adjusted earnings before interest, taxes, depreciation and
amortization--one of the company's preferred metrics--fell to
GBP476 million, from GBP597 million at the same time in 2021.
Flutter said this includes a GBP132 million investment loss from
its U.S. division, which accounted for more than a third of group
revenue in the second quarter.
The company said the second half has begun well, with revenue in
the first five weeks to Aug. 7 in-line with its expectations. There
are currently no discernible signs of a consumer slowdown, but the
company is closely monitoring key spend indicators given the
uncertain macroeconomic outlook.
Flutter said it expects to achieve an adjusted Ebitda of GBP1.29
billion-GBP1.39 billion for the full year excluding its U.S.
business. It also said that in the U.S. it expects to generate
revenue of GBP2.3 billion-GBP2.5 billion and book an adjusted
Ebitda loss of GBP225 million-GBP275 million.
"We remain firmly on the path to profitability in 2023, driven
by our compelling customer economics and disciplined investment,"
Chief Executive Peter Jackson said.
The Dublin-based betting and gambling company said it will
review its dividend policy once it achieves its leverage targets.
The board suspended dividends in March 2020 to preserve cash during
the coronavirus pandemic.
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(END) Dow Jones Newswires
August 12, 2022 02:54 ET (06:54 GMT)
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