In a trading update, Flutter revealed across all is operating divisions, with the exception of Australia, where it reported a slight decline in revenue during the three months through to 31 March.
Activities in the US delivered the highest level of growth and was also Flutter’s main source of income for the quarter, with revenue up 112% year-on-year and significant growth across both sports betting and gaming.
“The group delivered a very strong Q1 performance with pro forma revenue growth of 29% achieved through continued execution against the group’s strategic priorities,” Flutter chief executive Peter Jackson (pictured) said.
“In the US, the combination of the FanDuel Advantage and the Flutter Edge drove further market share gains. We added over 1.5 million customers in the quarter and we remain the clear market leader.
“Our US sports betting handle of $10.9bn represented almost 60% of the group’’ total sportsbook stakes.”
Flutter revenue rises to £2.41bn in Q1
Group revenue for the three-month period amounted to £2.41bn (€2.73bn/$3.01bn), which was up from £1.57bn in the opening quarter of 2022. Total sports betting revenue was 61% higher at £1.50bn, while gaming revenue also increased 44% to £916m.
Breaking down divisional performance, US revenue was up 112% to £908m. Sports betting revenue jumped 116% and stakes 43%, while gaming revenue increased by 43%, helped by the success of FanDuel Advantage and Flutter Edge.
In the US, Flutter noted the impact of new launches in both Ohio and Massachusetts, which in turn drove a 20% increase in total new players. The operator also hailed the impact of its Same Game Parlay products, including a broader offering on March Madness and in-play NBA basketball betting.
Elsewhere, UK and Ireland revenue climbed 17% to £608m, with online revenue up 17% to £532m and retail revenue 17% to £77m.
Flutter put online growth in the region down to the reshaping of its business in recent years to focus on growing its recreational customer base. Online sports betting revenue was up 16%, helped by the retention of World Cup players from Q4 and strong customer acquisition. Gaming revenue also climbed 17% helped by wider bonus offerings on Sky Vegas.
For UK and Ireland retail, Flutter said growth in this segment reflected lower revenue in the previous year as post-Covid behaviour normalised, as well as good customer engagement in the quarter.
International revenue increased 85% to £605m, mainly due to the impact of the acquisition of Sisal in August 2022. Flutter noted Sisal is benefitting from its inclusion into the wider business, with the conversion of retail customers to its range of online products driving revenue up 19% in Italy alone.
Finally, Australian revenue slipped 4% year-on-year to £289m, reflecting the unwind of the Covid frequency benefit from the prior year. However, Flutter did state that its Sportsbet brand was able to deliver good player retention despite challenging Covid comparatives.
In terms of customer activity, average monthly players across the group was 30% higher at 12.3 million, with this figure 46% higher in the US at 3.4 million and 48% up within the international business at 3.9 million.
Shareholders approve additional US listing
After the end of Q1, Flutter shareholders approved a measure introducing the intention to seek a second US listing. According to Flutter, the listing is due to enter into effect in “mid-Q4 2023” and is set to will be on top of the operator’s current listing on the London Stock Exchange and Euronext Dublin.
While the exact location of the second listing is still to be determined, Flutter has said it will be either on the NASDAQ Stock Market or New York Stock Exchange.
“We were very pleased to receive overwhelming support among our shareholders for the addition of a Flutter US listing,” Jackson said in his Q1 reaction. “The strategic and capital market benefits this will bring to Flutter will position the Group well for its next phase of growth.”
Jackson also referenced last week publication of the Gambling Act white paper in Great Britain, saying Flutter supports the proposed changes.
“In the UK, the publication of the White Paper has vindicated the proactive actions we have taken to further embed safer gambling across our organisation through our Play Well strategy,” Jackson said.
“The changes will bring consistency to safer gambling protections for customers and make responsible play a priority across all operators, which we strongly support.”
Original article: https://igamingbusiness.com/finance/quarterly-results/us-growth-drives-revenue-up-54-at-flutter-in-q1/
