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 million.

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.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

August 12, 2022 02:54 ET (06:54 GMT)

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