4 May 2023
Flutter Entertainment reports a significant revenue increase in Q1 2023, led by growth in US business
Flutter Entertainment, the parent company of FanDuel, has announced a significant revenue increase of 54% YoY in the first quarter of its 2023 financial year. The boost in revenue can be attributed primarily to growth in its US business. According to Flutter’s trading update, the company experienced growth across all operating divisions, except for Australia, where revenue decreased slightly during the quarter ending 31 March.
Flutter’s US business delivered the highest level of growth. It became the company’s primary source of income for the quarter, with a 112% YoY revenue increase and significant growth in sports betting and gaming. Peter Jackson, the CEO of Flutter, has emphasized that the company has successfully implemented its strategic priorities. This statement reflects the company’s effective execution of its business plan, resulting in its continued growth and success.
Flutter’s group revenue for the quarter was £2.41bn, up from £1.57bn in the opening quarter of 2022. Total sports betting revenue rose 61% to £1.50bn, and gaming revenue increased 44% to £916m. The US revenue grew 112% to £908m, with sports betting revenue jumping 116% and stakes rising by 43%. Gaming revenue climbed 43%, thanks to the success of FanDuel Advantage and Flutter Edge.
Flutter noted the impact of new launches in Ohio and Massachusetts, which drove a 20% increase in new players. Flutter also highlighted the success of its Same Game Parlay products, including a broader offering on March Madness and in-play NBA basketball betting.
Flutter attributed online growth in the region to reshaping its business in recent years to focus on growing its recreational customer base. Flutter’s global revenue picture is mixed, with the company seeing strong growth in some regions and declining in others. In particular, international revenue surged by an impressive 85% to £605m, driven primarily by the acquisition of Sisal in August 2022. Sisal has proved to be a valuable addition to Flutter’s wider business, with the conversion of retail customers to online products leading to a 19% revenue increase in Italy alone.
Meanwhile, Flutter’s Australian revenue dropped by 4% YoY to £289m, reflecting the unwinding of the Covid frequency benefit from the previous year. Despite this, the company’s Sportsbet brand retained its players effectively, despite challenging Covid comparisons.
Looking to the future, Flutter has announced its intention to seek a second US listing, with shareholders approving the move. This is expected to take effect in mid-Q4 2023, although the exact location of the listing is still to be determined. The company has stated it will be on the NASDAQ stock market or New York Stock Exchange. According to Flutter CEO Jackson, the additional listing will bring significant strategic and capital market benefits, positioning the group well for its next growth phase.