FanDuel drives ‘step change’ in earnings for Flutter
Flutter, the owner of Paddy Power, Betfair and Sky Betting and Gaming, delivered a strong start to the year with revenue growth of eight per cent and net income of $335m compared to a net loss of $177m in Q1 2024.
The ‘step change’ in earnings was driven by the US performance of FanDuel with sports betting and iGaming GGR market shares of 43 per cent and 27 per cent in the quarter, and a 48 per cent NGR sports betting share.
UKI revenue grew two per cent. Sportsbook revenue was down two per cent with a product-driven increase in structural gross win margin offset by the impact of lower horse racing handle in-line with market trends. iGaming grew nine per cent year-over-year driven by the roll out of premium and bespoke games
International revenue was one per cent higher year-over-year (up 3% on a constant currency3 basis), underpinned by good AMP growth of 8%.
SEA revenue grew 14 per cent from SEA AMP growth of 25 per cent to 1.8m in the quarter. SEA sportsbook revenue growth of 27 per cent reflected good underlying momentum combined with favorable sports results. iGaming revenue benefited from improved content to grow by eight per cent. SEA Italian revenue of $378m was up nine per cent (sportsbook: $155m +27 per cent, and iGaming: $222m in line year-over-year) with Turkey revenue growing 57 per cent (or 84 per cent in constant currency), driven by AMP growth
APAC revenue was 13 per cent lower as strong iGaming growth in India of 45 per cent was offset by 18 per cent lower sportsbook revenues in Australia, where unfavorable sports results compounded the previously highlighted horse racing market softness
Central and Eastern Europe (CEE) revenue grew 15 per cent primarily driven by strong performances in Georgia and Serbia
Brazil revenue was 44 per cent lower, reflecting the transitory impact of customer re-registration friction in the newly regulated market
Peter Jackson, CEO, commented: “I am pleased with the performance of the business during the first quarter, with the scaling of our US business driving a step change in the earnings profile of the Group. FanDuel continues to win in the US, retaining leadership positions in both online sports betting and iGaming, while we saw a positive performance within International, where our scale and the competitive advantages of our Flutter Edge have been enhanced by the acquisition of Snai in Italy.
“We are delivering against our strategic priorities, with clear optionality as an ‘and’ business that can create significant value through a combination of organic growth, accretive M&A, and returns to shareholders. The global regulated market opportunity is significant, and Flutter remains uniquely positioned to win.”
