Flutter, the Dublin based gaming behemoth in its half yearly financials for 2023 said its core earnings jumped 76% as its fast growing US brand Fanduel turned profitable for the first time, six months ahead of schedule.
Flutter said it acquired 32.5% additional shareholding in the Indian operator Junglee Rummy in July 2023 taking the ownership stake to 84.8%. The acquisition was done through cash payment of £75 Mn taking the valuation close to £230.8 Mn. The gaming group acquired a majority 50.1% stake in Junglee Rummy for first time in 2021 for $66.2 Mn.
Flutter: Junglee Rummy and GST impact
The Paddy Power, Betfair and PokerStars owner said Junglee Rummy is well positioned to navigate proposed tax changes in India. Flutter said scale is essential to navigate the tax regime similar to USA. Junglee during the reporting period grew at 54% in terms of revenue.
Flutter said the put and call options agreed in 2021 could result in it acquiring the 5% of Junglee Games held by the former shareholders of Sachiko in 2027 and 2032 based on the future revenue targets.
FanDuel contributed 98% of the 1.8 billion pounds of U.S. revenue and generated a 79 million pound profit during the period.
Flutter and broadcaster Fox Corporation few weeks back said they would close FOX Bet. As per the reports, Flutter will retain the customer database and market-access agreements associated with the business, while Fox will keep rights to the brand and its option to buy an 18.6% stake in FanDuel.
Flutter said it expects full year adjusted U.S. earnings of £90 million to £190 million, as it invests further in the second half, and earnings in the rest of the group to be between £1.44 billion and £1.6 billion.
As per reports, Flutter is still assessing the longer-term implications for its presence on the Irish stock exchange as it advances plans for a listing in the United States, according to chief executive Peter Jackson. Flutter is currently listed on the London Stock Exchange.