Operator News

UK – Flutter revenue rises to over £2bn

By William - 10 November 2023

Flutter Entertainment has cited the influence of the FanDuel brand for increasing player acquisition as the Group recorded 13 per cent revenue growth to over £2bn in the third quarter.

In the US, the combination of FanDuel and Flutter delivered an increase of 37 per cent in new sports betting and iGaming players in Q3 when compared with the prior year, including a 13 per cent increase in states launched pre-2022.

In the UK and Ireland, sports revenue grew six per cent and retail revenue rose by nine per cent, benefitting from a good start to the Premier League season and an enhanced product proposition and increased Betbuilder adoption.

However, Australia saw revenue decline seven per cent as sportsbook stakes were nine per cent lower. The Group acknowledged that there isn’t likely to be a turnaround soon with a ‘softer racing market’ now expected to persist into 2024, resulting in an estimated mid-single digit decline in the overall market across the year.

Flutter’s international division reported revenue growth of 19 per cent following the acquisition of Sisal in August 2022 and organic growth within the business.

“The Group had another strong quarter in Q3 and even in this seasonally quieter period, the power of our diversified business is clear with revenue growth of 13 per cent to over £2bn. We remain the number one choice for sports betting and gaming customers globally, and our 16 per cent growth in average monthly players augurs well for our continued growth and market leadership,” commented Peter Jackson, Chief Executive.

“We are particularly pleased by the great progress we are making in the US. We are the first online operator to achieve structural profitability, and the strong ramp in EBITDA during 2023 will continue into 2024 and beyond, as our profit margins expand materially.

“The NFL season is off to an excellent start with our product leadership driving average monthly player growth of 38 per cent to 2.6m in the quarter. I am excited about our plans heading into the sports rich months of November and December as we execute on our winning strategy which, combined with the FanDuel Advantage, keep us leading the industry.

“Outside of the US, our strategy ensures we can capitalise on the many growth opportunities which exist across our global markets. Our diversified portfolio of leading brands are well positioned to adapt to challenges and opportunities in their respective markets. In Q3, our UK & Ireland brands continued to take share across online and retail channels through our winning product offering.

“In addition, our Consolidate and Invest markets drove strong momentum within our International business. We were pleased to add MaxBet to the Flutter portfolio, in line with our strategy for acquiring ‘Local Hero’ brands in attractive markets. While market conditions in Australian racing remain challenging, as the clear market leader with a player base 1.8 times that in 2019, we are confident that Sportsbet is the best positioned brand in the market.

“We are making good progress towards our US listing which will bring the Group significant benefits from accessing the world’s deepest and most liquid capital markets. Overall, the significant potential for US growth and ability to leverage scale benefits across our diversified portfolio outside of the US, underpins our confidence in our significant and sustainable long term earnings growth potential.”