Analyst reacts to Flutter s Q3 results Strategic growth but affordability checks could damage revenue
After the announcement of Flutter Entertainment’s Q3 report for 2021, in quotes sent to Gambling Insider, regular contributor Harry Barnick, Senior Analyst at Third Bridge, shared his views on the report.
Flutter’s results show a 13% rise in average monthly players, with total revenue growing 12% at constant currency, however, “affordability checks and bet-per-spin limits are the headline factors that could damage revenue and profit in the long-term.”
Barnick added: “In Flutter’s home market, increased scrutiny into online regulation poses a threat to top-line and profitability, and investors are anxiously waiting to hear what could be in store for the sector.”
Following the start of the NFL season, which saw large competition in a range of states, data from the report shows the US trade “continues to be a strategic growth area for Flutter with success in this market looking pivotal to the future of the company.”
“As regulation opens up on a state-by-state basis, Flutter will be singularly focused on picking up licenses and growing market share in the US,” said Barnick.
“Our experts say customer acquisition costs in the US continue to pose a challenge. The land grab is in full swing as Flutter and its competitors spend big to win a share in this growing market. As the market matures, demonstrating profitability to investors will become increasingly important.
“Consolidation is on everyone’s lips following DraftKings’ abandoned takeover of Entain. Investors will be wondering what part Flutter could play in the global M&A landscape,” he concludes.
Autres publications du blogue de la même catégorie.