Online betting giant Flutter Entertainment has recorded a 15% increase in fourth-quarter revenues, resulting in a 12% jump in its stock prices, despite admitting that the performance of its FanDuel business in the US fell short of expectations due to a series of customer-friendly outcomes. The company has also announced £9.5 billion ($12.07 billion) in revenue for the entire year, driven by its subsidiary.
Flutter’s fourth quarter saw a 15% group revenue increase to £2.67 billion ($3.38 billion), with sports betting revenue up 8% and gaming up 15%. The response from the market was in sharp contrast to rival 888 Holdings, whose shares slumped on Wednesday on a weaker-than-expected 2024 outlook.
“The group traded well in Q4 underpinned by our leading local brands supported by global Flutter Edge advantages,” Flutter CEO Peter Jackson said. “In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength.”
Although the full profit figures will be released on March 26, Flutter announced post-market close on Thursday that the net revenue in the US of £1.139 billion ($1.45 billion) for the quarter was £147 million ($186.69 million) below their November guidance. The revenue shortfall in its largest division is expected to impact US adjusted earnings by approximately 35%.
Meanwhile, fourth-quarter revenue growth of 4% in its international division, a 2% dip in Australia and 19% jump in the UK and Ireland, where it won further market share, were in line with guidance.
Last year, Flutter became the first online betting operator to turn a profit in the US since a sports betting ban was lifted in the country in 2018. In November, it had forecasted core full-year earnings in the US of about £140 million ($177.8 million).
FanDuel’s market share in the US rose to 43% during the peak sports activity period, with the start of the football season. This was up from 40% at the end of September, but down from 50% a year ago.
Peter Jackson
Full-year revenue in the US saw a 41% increase from the previous year, contributing to a 25% rise across the group, reaching £9.5 billion ($12.07 billion). This was ahead of the 9.4 billion pounds LSEG SmartEstimate, weighted toward forecasts from analysts who are more consistently accurate.
The US operations continued as the group’s primary revenue source, representing 37.9% of the total revenue. In constant currency (CC) terms, US sports revenue increased by 39%, while gaming was up by 47%. The average number of monthly players increased by 38%, to more than 3.2 million.
Looking ahead, Flutter is nearing a secondary listing on the New York Stock Exchange (NYSE), expected to launch on January 29. This move aims to make Flutter more accessible to US-based investors.
The NYSE listing will coincide with the end of Flutter’s secondary listing on Euronext Dublin on the same date. However, Flutter’s FTSE 100 status on the London Stock Exchange (LSE) will remain unchanged.
According to the company’s CEO, this will mark “a pivotal moment for the group,” as the move makes Flutter more accessible to US-based investors and allows the company to gain access to deeper capital markets.”
