Flutter Entertainment has announced its results for the third quarter of 2023, showing a revenue increase of 7.6%, reaching $2.47 billion. The jump is primarily attributed to the performance of U.S.-facing brand FanDuel, which Flutter acquired in May 2018. However, customer-friendly sports results are expected to push full-year earnings to the bottom of the forecast range, which sent the company’s shares down.
In the United States, third-quarter revenue was $809 million, marking an 11.7% increase compared to the same quarter last year and representing 32.8% of total revenues. This performance confirms the U.S. as Flutter’s most profitable market, surpassing traditionally strong regions for the gambling giant like the United Kingdom and Ireland.
Peter Jackson, CEO of Flutter, said: “We are particularly pleased by the great progress we are making in the U.S. 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.”
Peter Jackson
“The NFL season is off to an excellent start with our product leadership driving average monthly player growth of 38% to 2.6 million 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, keeps us leading the industry.”
During what is a typically quieter period, sports betting revenues slightly decreased by 1.9%, totaling $1.36 billion. However, this decline was offset by a 22.2% increase in gaming revenues, reaching $1.11 billion.
Specifically in the U.S., sports betting revenues increased by 10%, adjusted for exchange rates. There was a 40% jump in betting volume, though a 170 basis-point reduction in net revenue margin balanced the figures, resulting in a 12% growth in net revenue. Growth was attributed to investments in marketing campaigns to attract new customers, product innovation, and effective retention of existing customers.
In the U.S. iGaming segment, there was a 52% increase in revenues, also adjusted for currency. FanDuel’s iGaming brand’s market share grew to 23% in the quarter, driven by a 42% increase in the average monthly active players.
The company’s combined online sports betting and iGaming revenues in states where it was present before 2022 rose by 12%. Flutter highlighted that iGaming growth partially offset the lower sports betting revenues.
In the United Kingdom and Ireland, Flutter saw growth of 11.2%, totaling $685 million in revenue. This increase was driven by both the online segment, which grew by 11.5%, and retail, which grew by 9.1%. Effective early-season campaigns and the expansion of content and promotional mechanisms were key factors.
Internationally, the company’s revenue increased by 15.7%, reaching $652 million, with the acquisition of Sisal significantly influencing this. Markets such as India and Turkey showed substantial organic growth.
On the other hand, Australia faced challenges, with a revenue decline of 17.9%, totaling $317 million. Flutter attributes this reduction to a challenging racing market and anticipates that this negative trend may persist into 2024.
Flutter expects that customer-friendly sports results may push 2023 earnings, excluding the U.S. market, to the bottom of its previously forecast range. Adjusted EBITDA is now expected to reach approximately £1.44 billion ($1.76 billion), within the previously stated range of £1.44 billion to £1.60 billion.
Original article: https://www.yogonet.com/international/noticias/2023/11/13/69615-flutter-reports-76-growth-in-q3-driven-by-fanduel-39s-solid-performance-in-the-us
