Flutter Begins To Turn a Profit in The US, Reports 38 Percent Growth

Article by : Erik Gibbs Aug 11, 2023

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It’s only sometimes that gaming giants achieve and thus report significant success in the industry. Yet, for Flutter Entertainment, a quarterly release pointed to one of the most proficient times in the firm’s history.

Based on its latest numbers, the company reported that it had achieved increased profitability in the US market. With its headquarters in Dublin, the international gaming firm released its preliminary financial results for the first six months of 2023, which ended in June.

The numbers pointed to 38% revenue growth, primarily due to its outstanding performance in the US. This, summed to an ongoing and gradually built momentum, has allowed the firm to remain a strong competitor in the UK and Ireland. The brand has done so by keeping a solid online presence and through its street brands, such as Paddy Power.

At the end of 2021, the company’s purchase of Sisal, the largest online gaming platform in Italy, began to impact the group’s underlying earnings. The company reported a 24% increase in revenue increase since the acquisition of Sisal.

This growth helped to drive an extremely commendable 72% increase in adjusted group earnings to surpass the $1 billion mark. Experts point to Flutter’s turnaround as its solid integration and transition to the US market. The company turned approximately $168 million loss in the first half of 2022 into $65 million in US-adjusted profitability.

With more significant income also comes greater profits. Higher revenue is the critical factor driving higher profits in any primary industry; for Flutter, a $162 million profit after a $142 million loss in the first half of 2022 and a $400 million charge for amortizing acquired intangibles proved to be the right move. The company strategy has remained solid and has continued to push the firm in the right direction.

According to the founder and CEO of Flutter, Peter Jackson, the first half of 2023 is the breaking point for the company. He emphasized how 2023 data has served as clear proof that the company is well-headed into potential growth phases in the future.

Jackson also referred to the company’s business in the US and how their performance in the US market has also made the inflection point even more acute and positive. With new financial flexibility, the company is heading in the right direction, and with new sources of cash flow, the expansion will also remain the central pillar to adjust short to mid-term strategic targets.