Operator News

UK – Flutter ups US revenue guidance with FanDuel flying

By Phil - 10 November 2022

Betting giant Flutter has reported revenue growth benefitting from US growth of 82 per cent and the Sisal acquisition.

Revenue from the group who owns Paddy Power, Betfair and Sky Betting and Gaming, saw a 31 per cent increase from last year amounting to £1.89bn. Flutter has revised its US revenue guidance, upping it from $2.95bn to $3.2bn with its FanDual unit currently the best-earning online sportsbook with 42 per cent market share. Flutter said it had seen a ‘strong start to NFL season and continued momentum underpinning confidence in positive EBITDA for 2023.’ It added that Adjusted EBITDA loss was still expected to be in line with previous guidance of $300m to $360m despite the earlier launch of Maryland.

Peter Jackson, Chief Executive, commented: “Flutter delivered a strong Q3 performance with pro forma growth of 11 per cent in both revenue and average monthly players. Our US division is now our largest and generated $700m in revenue, up 82 per cent. Good growth in our ‘consolidate and invest’ International markets and the acquisition of Sisal in August helped drive ex-US revenues.

“We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over 1m players on a regular NFL Sunday. In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season. The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.

Mr. Jackson added: “Outside of the US, we welcomed Sisal, Italy’s leading gaming operator, to our International division during the quarter and look forward to working with the team to grow the business in Italy and in other International markets. We were delighted with the successful outcome of our arbitration process with FOX regarding the price of their option to acquire 18.6 per cent of FanDuel. This vindicates our position on the matter, with FanDuel valued at $20bn based on its fair market value at December 3 2020 and provides important clarity on the significant cost required to buy into the number one US gaming business. As we look ahead our product and geographic diversification, as well as our recreational customer base, position us well for future growth.”