Flutter soars on superior results, but won’t be able to match Draftkings’ surcharge

(Times of Update) — Shares of Flutter Entertainment Plc climbed as much as 11% in extended trading after the company, the operator of online sportsbook FanDuel, reported second-quarter sales and profit that beat analysts’ expectations.

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Flutter, which recently moved its stock market listing from London to the New York Stock Exchange, generated revenue of $3.61 billion in the quarter, beating estimates of $3.37 billion. Adjusted profit rose to $2.61 per share, beating expectations.

The company, which also moved its operational headquarters to New York, raised its annual U.S. revenue forecast to $6.35 billion and expects U.S. earnings of up to $800 million before interest, taxes, depreciation and amortization.

The company is benefiting from an increase in new customers and revenue, particularly in the United States, where the average number of monthly players increased by 27% to reach 3.47 million and sales climbed by 39% to reach $1.53 billion.

In an interview, Chief Executive Peter Jackson said Flutter has no plans to match rival DraftKings Inc., which has said it would introduce a surcharge for players in high-tax states like Illinois.

Flutter shares hit $211.80 in late trading after the earnings call. DraftKings fell as much as 6.4% to $29.44

Despite the move to New York, which reflects the dramatic growth of FanDuel’s business, Jackson said he has no plans to rename the company FanDuel or pursue an IPO for the company, something he had previously considered.

Flutter has recently been in the news as a potential acquirer. News site Next.io reported that the company had made a bid for Brazilian online betting company Betnacional. Jackson declined to say whether this was true, but said the mergers were part of the company’s strategy to build “podium positions” in local markets.

Asked about reports that he might join a bid for Penn Entertainment Inc., the parent company of ESPN Bet, Jackson said Flutter’s name often comes up when merger rumors circulate and that “some of the best deals are the ones we didn’t do.”

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