Flutter Entertainment has reported a 46% surge in first-quarter adjusted core profit. However, the company also posted a net loss of $375 million in Q1 2024, attributed to increased expenses and adverse foreign currency translations.
The owner of Paddy Power sustained growth momentum, with a 16.4% year-on-year revenue uptick to $3.40 billion. However, March witnessed a slowdown in growth due to unfavorable outcomes in US sports, notably influenced by the March Madness college basketball tournament.
This led to a notable swing in favor of gamblers, costing the company $76 million. Consequently, the 16% rise in group revenue to $3.4 billion fell short of analysts’ expectations, resulting in a 3% decline in Flutter’s shares during early trading.
Despite these challenges, Flutter remains optimistic about its core profit prospects for the year, anticipating a substantial increase of around 30% and keeping its guidance for the full year. This optimism stems from the remarkable growth of its US brand, FanDuel, which secured a leading 47% share of the sports betting market in the quarter.
The US market has been a focal point for Flutter’s expansion efforts. The company saw a turnaround in operations here, with a first-quarter core profit of $26 million compared to a loss of $53 million in the same period last year. Meanwhile, profits in other regions, including the UK and Ireland, showed a robust increase of 20% to $488 million.
FanDuel’s performance has been particularly noteworthy, with a record iGaming gross gaming revenue share of 27%. This success can be attributed to strategic initiatives aimed at enhancing customer experiences and expanding offerings within FanDuel Casino. As for sports betting, FanDuel’s online net gaming revenue market share increased to 52% during the first quarter.
The company’s recent launch in North Carolina proved to be its second most successful state launch since the lifting of the US nationwide ban on sports betting in 2018. Within the first 45 days, 5.3% of the adult population in North Carolina signed up as FanDuel customers, underscoring the brand’s growing appeal and reach.
Flutter’s shareholders recently endorsed the company’s transfer of listing to the New York Stock Exchange, marking a significant shift away from the FTSE100 index. Flutter has now moved its operational headquarters to the Empire State ahead of its primary stock market listing shifting there at the end of the month.
This move follows Flutter’s earlier delisting from the Irish stock exchange, Euronext Dublin, highlighting its strategic realignment towards the US market. However, Chief Executive Peter Jackson told Reuters that its previous headquarters in Dublin would become the company’s international hub and that it was committed to Ireland, where it will remain incorporated and tax resident.
Jackson hailed an “excellent” performance by the group during his analysis of the quarter. “We have had an excellent start to the year,” he said. “In the US, FanDuel’s top line momentum is translating into strong growth in US adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share and embedding future profits within our business through disciplined investment.”
“Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK where the launch of Super Sub on Paddy Power has been our most successful product launch to date. Also in Italy, where we have been taking online sports betting and iGaming market share during Q1 and reached an all-time record in April.”
Original article: https://www.yogonet.com/international/noticias/2024/05/14/72156-flutter-entertainment-clocks-46-q1-core-profit-revenue-grows-to-34-billion
