PokerStars the drag on Flutter’s Q3 online gambling gains

UK-listed online gambling giant Flutter Entertainment reported strong growth in the third quarter despite a middling performance by its PokerStars brand.  

In a trading update issued Wednesday, Flutter said its overall revenue in the three months ending September 30 totaled £1.325b, up 27% from the same period last year. The company boosted its full-year earnings projection from £1.175b-£1.325b to £1.275b -£1.35b, although that’s not counting an expected loss of £160m-£180m in its US-facing operations.

The Q3 stats assume that The Stars Group, which officially became part of the Flutter family this spring, was fully contributing to both the most recent quarter and Q3 2019. The PokerStars unit was by far the least impressive component of Flutter’s Q3, with revenue of £262m, down roughly £1m year-on-year (although up 5% on a constant currency basis).

PokerStars’ problems stem in part from its abrupt late-August decision to exit Chinese-language markets, which came just days after Flutter announced plans to improve Stars’ anti-money laundering and responsible gambling compliance.