Flutter Entertainment PLC (LSE:FLTR) beat expectations in 2022 as US business FanDuel did even better than forecast.
Group revenues rose by 27% to £7.69bn as FanDuel delivered what the bookie described as an "exceptional performance".
Underlying profits also rose by 27%, to £918mln, though at the pre-tax level there was a loss of £305mln (£412mln) after intangible write-offs and US start-up costs.
The Paddy Power and Betfair owner said the recent launch of FanDuel in the US states of Marland and Ohio has been its most successful to date. Overall, the business has a 50% share in the US sportsbook market, up ten percentage points.
US revenue of £2.6bn was at the upper end of expectations, Flutter added, with the underlying loss of £250mln at the lower end even with a run of unfavourable sporting results.
FanDuel remains on track to be profitable on an underlying basis this year, Flutter added.
In the UK, Ireland and Australia (ex-US), underlying profits rose by 2% to £1.3bn even though sport results in December cost it £40mln.
There was no dividend, but Flutter said it will review this once debt is reduced.
Net borrowings rose to £4.6bn from £2.65bn, reflecting the acquisitions of Sisal (£1.7bn), Adjarabet (£204mln) and tombola (£410mln).
Peter Jackson, chief executive, added it spent £60mln during the year on safer gambling initiatives, with the usage of its tools rising to more than 40% of its customers.
“2023 is off to a pleasing start driven by positive momentum from the end of last year,” he added.
“With our combined US business on track to deliver a positive EBITDA for the full year 2023 for the first time, the group is currently at an earnings' transformation point.“