Flutter Entertainment, the parent of sports betting company FanDuel, soared Wednesday following its strong Q2 report. Elsewhere, rival DraftKings scrapped plans to impose a gaming surcharge in high-tax states.
Flutter Entertainment late Tuesday reported a 56% increase in earnings to $2.61 per share adjusted, well ahead of FactSet estimates of $1.47 per share. Total revenue spiked 20% to $3.61 billion, also ahead of views of $3.39 billion.
The betting company reported a 17% increase in average monthly players to 14.3 million.
In the U.S., Flutter maintained its title for the top online sportsbook and iGaming brand. The company claimed a 47% share of sportsbook gross gaming revenue and a 51% share of net gaming revenue.
Flutter also noted a strong FanDuel launch in North Carolina in March, with 59% of the state's net gaming revenue for Q2.
Average monthly U.S. players leapt 30% for the quarter. U.S. revenue spiked 39%, driven by a 41% increase in sportsbook revenue. Meanwhile, the company reported more new players in established states. Flutter saw 16% growth in new-player volumes in states where it launched prior to 2022.
Flutter relocated its operational headquarters during the quarter to New York, from Ireland, to reflect the "natural evolution" of the business toward the U.S.
Outside the U.S., Flutter's average monthly players spiked 15% and revenue increased 10%. The company owns various international betting brands including Sky Betting & Gaming, Sportsbet, PaddyPower and Betfair.
The FanDuel parent also hiked its guidance with the report. Flutter now expects U.S. revenue to range from $6.05 billion to $6.35 billion, up from its prior revenue outlook of $5.8 billion to $6.2 billion. Excluding the U.S., Flutter guided international revenue to range from $7.85 billion to $8.15 billion. The company previously expected revenue to range from $7.65 billion to $8.05 billion.
Elsewhere Flutter is in talks to buy Snaitech, the Italian unit of UK gambling tech company Playtech, for nearly $2.6 billion, Sky News reported Wednesday. Discussions are ongoing and there is no guarantee a deal will be reached.
Flutter Stock
Flutter stock rallied about 8% Wednesday, rebounding strongly above its 50-day moving average and moving up the right side of a five-month consolidation.
The FanDuel owner has climbed 16% in 2024.
DraftKings
Meanwhile, DraftKings nixed plans to impose a gaming tax surcharge for winners in high-tax states with multiple mobile sports betting operators. DraftKings announced the plans in its early August earnings report, with the goal of driving up adjusted earnings before interest, taxes, depreciation and amortization.
The announcement came after rivals declined to join in imposing surcharges for winners. Flutter CEO Peter Jackson on the Tuesday earnings call said the best option for customers is "moderating levels of generosity and reducing global marketing," rather than charging winnings. ESPN BET and BetRivers also said they have no plans to impose a surcharge tax on winnings, according to reports.
DraftKings on Aug. 2 reported its first GAAP profit of 12 cents per share, improving from a loss of 17 cents last year. FactSet expected a loss of 1 cent.
Adjusted earnings increased 57% to 22 cents, also beating estimates for 15 cents per share.
Total revenue spiked 26% to $1.1 billion, slightly below views of $1.11 billion.
DraftKings announced a $1 billion stock buyback plan with the results. The company also hiked its revenue guidance to range from $5.05 billion to $5.25 billion, from its prior outlook of $4.8 billion to $5 billion. The outlook implies 38% to 43% revenue growth for the year. FactSet expects DraftKings to record $5.09 billion in revenue for 2024.
DraftKings stock swung 2% higher Wednesday.
DKNG stock retreated 9% in 2024.
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