Flutter Entertainment PLC (LSE:FLTR) raised full-year revenue guidance for its fast-growing US operation while overall group profits are seen in line with forecasts with no signs of a slowdown in business.
But a £280mln interest charge is expected in 2023 reflecting an increase in the cost of debt from 4.1% in quarter four to 5.6% in 2023, the group said.
Broker Peel Hunt said: “We estimate that this implies a 10% downgrade to the full year 2023 consensus for pre-tax profits and EPS. Given the movement in reference rates, this should have been expected but may take the edge off the recent rally.”
The world's largest online betting firm said third-quarter revenues rose 22% to £1,891mln including US growth of 82%, with full-year revenues in the US unit now expected to be between £2.45bn to £2.65bn (up from previous guidance of £2.3bn to £2.5bn).
The US business is expected to swing into profit next year.
Excluding the US arm, full-year group EBITDA is expected to remain within previous guidance of £1.29bn to £1.39bn, despite continued Irish Retail weakness and UK fixture cancellations.
The US business is expected to post an EBITDA loss for the year in line with previous guidance of £235mln to £285mln.
Peter Jackson, chief executive, commented: “We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over 1mln players on a regular NFL Sunday.”
“In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season.”
“The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.”