FanDuel owner Flutter lifts guidance, rival betting firm drops US surcharge plans
Flutter said Q2 earnings a 'material outperformance'
Investors watched for Flutter response to DraftKings charge
DrafKings drops plans following 'customer feedback'
Recasts, adds DraftKings statement on surcharge plans in paragraph 6
By Padraic Halpin
DUBLIN, Aug 13 (Reuters) -Flutter FLTRF.L raised its full-year guidance after a much better than expected second quarter and said it would not hit customers with a surcharge in high-tax U.S. states, shortly after which rival betting firm DraftKings DKNG.O dropped plans to do so.
Flutter's U.S. shares FLUT.N, where it recently moved its primary listing, were 11% higher in extended trading after the world's largest online betting firm said it expects to beat its previous forecast for a jump of around 30% in full-year core profit.
The Dublin-based group, whose brands also include Paddy Power and Betfair in Britain and Sportsbet in Australia, said adjusted core profit rose 17% in the second quarter.
Flutter's U.S. FanDuel brand and DraftKings are by far the biggest players in the booming U.S. market with a combined share of around 70% and investors were closely watching Flutter's response to the charge DraftKings announced on Aug. 2.
At the time, DraftKings' CEO compared the plans to similar charges in the hotel or taxi industry and hoped it would offset the cost of operating in states such as New York, which has a tax rate of 51% on gambling revenues.
"We always listen to our customers and after hearing their feedback we have decided not to move forward with the gaming tax surcharge," DraftKings said in a statement released after Flutter's results.
While analysts had said DraftKings' plans could boost cash flow, they warned it also risked losing market share if rivals did not follow suit. The charge would have applied to customers' winnings in the four states that currently tax gaming revenues at 20% or more.
Flutter CEO Peter Jackson said the best response to higher taxes, based on its experience in the more established European market, was to cut local marketing or moderate customer offers, as it plans to do in response to recent tax hikes in Illinois.
Flutter said on Tuesday that it now expects full-year core profit of $680 million to $800 million at market-leading FanDuel versus the $635 million to $785 million seen in March and last year's $167 million, which was its first full year of profitability in the rapidly growing market.
Core profit of $1.69 billion to $1.85 billion is now seen in its other global markets including Britain and Australia. That compares to the $1.63 billion to $1.83 billion forecast previously.
Reporting by Padraic Halpin; Editing by David Gregorio and Jamie Freed
Ativos relacionados
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
