Flutter Entertainment, formerly known as Paddy Power Betfair has posted a 24 percent year-on-year decline in profits. The gambling operator has blamed increased taxes and duties along with expansion costs in the US market for the plummeting profits.
While the company’s revenue for the six months ending June 30 was up 18 percent year-on-year to £1.02b, its profits slipped by 10 percent to £196m. Moreover, its pre-tax profit sank 24% to £81m.
The company’s shares also tumbled by 2 percent after its disclosed the financial figures for the first six months of 2019.
Earlier in May, Paddy Power Betfair rebranded itself as Flutter Entertainment. The idea behind changing the name was to make sure that the company’s brand name resonated with the company’s services. Apart from England, the company also has been benefiting from its overseas operations – the US being the prime foreign destination.
Flutter has already been facing challenges in the domestic market amidst strict regulations. After the new regulations related to FOBTs which brought down the maximum stakes at FOBTs from 100 GBP to 2 GBP came into effect the company has been facing declining revenue in the UK betting markets.
The company has also been facing increased costs in other markets including the US and the Australian betting market. The increase in betting duties in the UK and Ireland have also taken a toll on the company’s profits.