Sky Bet owner Flutter cuts full year underlying earnings outlook
Paddy Power owner Flutter Entertainment has revealed that payouts have surged due to a long winning streak by punters.
The group – which also owns Betfair, Sky Bet and FanDuel in the US – slashed its full year underlying earnings outlook in results out in America to £2.9bn, down from £3.3bn previously.
It said this was due largely to a run of customer-friendly sport results in the third quarter, which has picked up pace in its current quarter, with the group alerting over a hit of around 170 million US dollars (£129.4m) to underlying earnings from higher-than-expected payouts since the start of October.
Profits are also being weighed on by investment costs, with the firm expanding its FanDuel business across the US and announcing the launch with partner CME Group of FanDuel Predicts app next month.
The app will target the rapidly-growing event contracts market, which allows investors to bet on the likelihood of specific events occurring, such as those in sport and entertainment through to politics and the economy.
Peter Jackson, chief executive of Flutter, said: “We are the clear number one operator in the US and we will continue to build on that position to drive future profitability."