Flutter Entertainment Records Financial Hit after Dutch Exit
Flutter Entertainment, the Irish and British giant casino operator, has released its third-quarter trading update showing a 7.4% fall in its stock value due to the October sports results and especially its exit from the Dutch market.
The firm listed with the London Stock Exchange Group revealed in its latest report that its temporary pull-out from the newly regulated Netherlands market could make it lose about £10 million ($11.6 million) this year.
The figure as postulated by the company could go up to £40 million ($46.3 million) for 2022 even if the Netherlands gambling regulator, Kansspelautoriteit (KSA), grants it a license during the third quarter of next year.
Flutter Entertainment is one of the biggest casino operators in the United Kingdom, with several casino sites and sportsbooks to its name. Previously known as Paddy Power Betfair, the company owns and manages giant sites like Betfair.com, PaddyPower.com, and Pokerstars.com.
However, all isn’t bleak for the firm as the report showed that the company’s group-wide revenues for the three months to September’s ending had risen by 9% year-on-year to slightly over £1.4 billion ($1.6 billion) while its sports wagering revenue increased by 13% to top £906 million ($1 billion).
The company also noted a 1% bump in online casino takings to £534 million ($618.2 million)as well as an analogous 13% swell in average monthly players.
In America, the firm saw its associated revenues increase by 85% year-on-year to £280 million ($324.1 million).
While a run of customer-friendly results in October have resulted in win margins being below expected levels in the quarter to date, the underlying strength of our business is clear. We have grown our online recreational player base by 46% in just two years, and with more international jurisdictions and American states on the path to regulation, we look forward to sustainably growing our global player base further in 2022.