StockMarketWire.com - UK bookmaker Flutter said profits fell by nearly a quarter blaming higher taxes and costs.

For the six months ended 30 June 2019, pre-tax profits fell 24% to £81m, while revenue increased 18% to £1.02bn.

Revenue was boosted from the FanDuel acquisition in July 2018 and, to a lesser extent, the acquisition of Adjarabet in February 2019, but was offset by higher taxes and clampdown in grey markets.

'Cost of sales was adversely affected by approximately £10m from the increase in remote gaming duty on UK online gaming, the Irish betting duty increase and other betting tax changes in Italy and Romania,' the company said.

In the second half of the year, the company said a clampdown in grey markets would dent revenue and earnings (EBITDA) to be approximately £10m and £7m respectively.

'We estimate that the EBITDA impact of switch offs will be approximately £11m in 2019, of which £7m will be in the second half,' the company said.

In the US, meanwhile, customer acquisition investment was likely to lead to an expected EBITDA loss in 2019 of approximately £55m, the company said.

Guidance, however, was unchanged, with full-year 2019 underlying earnings (EBITDA) for group (excluding the US) expected to be between £420m and £440m.


At 8:23am: [LON:FLTR] Flutter Entertainment share price was +41p at 6269p



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