Eight million new shares

Flutter Entertainment has announced a new equity raise which has helped to bring in ￡812.6m ($1.1bn), representing 5.5% of the company’s share capital.

The additional cash will be mostly put towards accelerating Flutter’s US expansion, although the FTSE100 company added that some of the money will be spent on reducing its debt.

new shares will begin trading on June 2

The equity comes from a non-preemptive placement of eight million new ordinary shares which were priced at ￡101 ($124) each – an equivalent saving of 4.7% on Thursday’s closing share price. The new shares will begin trading on June 2.

Good news for second quarter

The company also revealed that it has already seen a 10% revenue rise for the second quarter of 2020, despite concerns over COVID-19. The figures reported were from the first 47 days of trading.

Flutter added that the increase came from strong international performance across the US and Australia. This was mainly due to the Irish company’s merger with The Stars Group Inc. (TSG), which was completed on May 5 after Flutter acquired TSG for almost ￡10bn ($6bn) in 2019.

Poker division sees substantial growth

Flutter also stated that TSG International, the division comprising PokerStars, PokerStars Casino, and PokerStars Sports, has seen its revenue rise by 92% year-on-year to date. Its success has helped contribute to Flutter’s overall growth so far.

revenue rise by 92% year-on-year

Meanwhile, Flutter businesses in the US grew by 61% year-on-year, with Australian business going up 56%. The growth was in part due to sports such as horse racing, which continued to take place behind closed doors during lockdown. ?

However, Flutter operations in the UK, where betting shops closed and sports events were canceled, meant that revenue from Paddy Power, Betfair, and Adjarabet was down by 52%. The UK-based Sky Betting & Gaming, which is online-only, also saw falls of 28%.

Commitment to US growth

Flutter’s statement on new shares and Q2 revenue also highlighted its commitment to branching out in the US. It said: “Flutter is determined to give its US business the best possible platform for future success and to replicate the leadership position it has achieved in the states that have regulated to date.”

new and existing stakeholders, such as the Fox Corporation, have increased their investment

It also confirmed that both new and existing stakeholders, such as the Fox Corporation, have increased their investment, although it did not clarify by how much.