Shares in Flutter Entertainment PLC (LSE:FLTR) tumbled almost 10% to 12,390p, their lowest since February, after warnings that profits for the year are likely to be at the bottom of the expected range due to "very customer friendly sports results" in the UK and US.
The group also said it expects to list on the New York Stock Exchange in the first quarter of 2024, having submitted its application for the additional listing with the US Securities and Exchange Commission (SEC). It will delist from Euronext Dublin simultaneously or shortly before, it said.
For the third quarter of 2023, group revenues increased by 8% to just over £2 billion, 13% higher if currency swings are ignored, with a 2% decline in sports more than offset by 16% growth in gaming that was driven by a 16% increase in average monthly players.
Excluding the US, where its Fanduel business is a leader in many state markets, revenues increased 5% on a pro-forma basis to £1.4 billion, or 10% in total.
The UK led non-US growth, up 11%, counterbalancing a 7% fall for Australia amid a declining horseracing market, while elsewhere India and Turkey were up and Italy down.
In the US, Fanduel grew revenues 20% on a constant currency basis to £668 million, with its sports market share down two percentage points and iGaming up 4ppts.
Full-year guidance reflects the unfavourable sports results in September and October across various markets.
Group underlying profit (EBITDA) excluding the US is now expected to be £1.44 billion, the bottom end of the previously guided £1.44-1.60 billion range.
In the US, Fanduel is now expected to generate revenues of £3.75 billion and EBITDA of £140 million, which is consistent with the middle of the prior guidance £3.6-3.9 billion revenue and £90-190 million EBITDA.
Chief executive Peter Jackson said the 16% growth in average monthly players "augurs well for our continued growth and market leadership".
He hailed the progress being made in the US in particular, saying: "We are the first online operator to achieve structural profitability, and the strong ramp in EBITDA during 2023 will continue into 2024 and beyond, as our profit margins expand materially."