Flutter Entertainment, a global gambling and sports wagering firm, experienced a significant drop in its shares on November 9th after predicting that its full-year income would reach the bottom end of its previous range. This forecast excluded the newest US market, attributing the decline to weakness in the Australian horse racing market.
The firm’s Australian horse racing market saw a 7% year-on-year decline in third-quarter revenues in constant currency terms. Despite the poor results from this market, the overall reported income of the company increased by 8% and 13% in continual currency terms. The company had previously expected its full-year adjusted ex-U.S. core profit to range between 1.44 billion and 1.6 billion pounds, but the low income and players’ steady winnings posed additional challenges.
One positive note for Flutter Entertainment was that it became the first online wagering operator to generate income in the U.S. during the first half of 2023. However, despite this achievement, the company’s shares fell as Refinitiv’s analysts expected the total core profit to be 1.65 billion pounds instead of the 1.58 billion pounds previously guided by Flutter.
In addition to the challenges faced by Flutter Entertainment, its rival 888 Holdings also cut its yearly income projections following a 10% drop in Q3 income, and Entain, the owner of Ladbrokes, issued a warning regarding third-quarter and yearly online net gaming income.
Despite the struggles in the sports wagering market, Flutter Entertainment’s gaming income outpaced sports wagering in the quarter. The company’s biggest subsidiary, FanDuel, experienced a 20% increase in total income in the U.S. regulated market. Meanwhile, the company reported an 11% increase in income in Ireland and the UK.
As part of its future plans, Flutter Entertainment disclosed its intention to delist from Euronext Dublin once it adds a New York listing in early 2024. This decision could represent a blow to the Irish stock market, following recent exits from other major companies such as CRH and the upcoming exit of Smurfit Kappa.