Flutter Entertainment PLC (LON:FLTR) said trading in the second half of the year has been encouraging so far but uncertainty remains due to potential further coronavirus disruption and possible regulatory change.
The Paddy Power parent company expects to make an underlying loss of £140-£160mln in the US for the full year, but the remaining activities are forecast to deliver underlying earnings (EBITDA) of £1.1-£1.3bn.
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The second half of the year has started well, noted chief executive Peter Jackson, “with good sports betting performance following the return of major sports events, whilst gaming performance has remained resilient”.
The FTSE 100 firm has also made progress on the integration with TSG since the May merger, having filled most key leadership roles.
In the six months to June 30, revenue jumped 49% to £1.5bn, though profit before tax slumped 70% to £24mln due to higher financial expenses, depreciation and amortisation. Net debt ballooned 88% to £2.8bn.
Analysts at Peel Hunt noted that the EBITDA forecast of £1.2bn at the mid-point and £1.1bn after US losses, is 16% higher than their expectations.
The broker also changed the target price to the current price, 12,600p from 10,600p.
Shares rose 2% to 12,825p on Thursday at the opening bell.
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