Flutter Entertainment Reports Huge Gains off the Back of Strong US Performance

Article by : Erik Gibbs Jan 23, 2024

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Flutter Entertainment has showcased robust financial performance with a remarkable 25% year-on-year surge in group revenue, reaching $12 billion for the 2023 financial year.

The key driver behind this success was a substantial 38% increase in revenue from US operations. The trading update for 2023 highlighted growth across all sectors, except for its Australian business, maintaining a positive trajectory in Q4.

A standout performer in 2023 for Flutter was FanDuel, its US-facing entity, witnessing a notable 38% year-on-year revenue spike, reaching $3.8 billion. With this consistent pattern, US operations continued to be the primary revenue contributor, constituting 37.9% of the total revenue.

On a constant currency (CC) basis, Flutter experienced a remarkable 39% surge in US sports revenue and a 47% uptick in gaming revenue. The company also emphasized a substantial 38% rise in average monthly players, surpassing the 3.2 million mark.

In the year’s final quarter, Flutter Entertainment marked a 15% surge in group revenue, reaching approximately $3 billion.

The breakdown revealed an 8% rise in sports betting revenue, reaching approximately $2 billion, and a substantial 15% climb in gaming revenue, reaching $1.4 billion.

The spotlight of Q4 analysis once again centered on Flutter’s US operations, where revenue experienced a significant 19% boost, reaching $1.6 billion.

This growth was attributed to FanDuel’s sportsbook, maintaining a 43% gross revenue market share across all US jurisdictions it operates. Moreover, FanDuel’s gaming offering secured a notable 26% share during the quarter.

Despite these positive outcomes, Flutter acknowledged that US revenue in the period fell below expectations, trailing an initial target by $186 million. This deviation was attributed to customer-friendly sports results, partially offset by a better-than-anticipated gross revenue margin.

Flutter CEO Peter Jackson expressed satisfaction with the Q4 performance, emphasizing the strength derived from leading local brands and global Flutter Edge advantages.

In the US, FanDuel solidified its sports leadership during the peak quarter for sporting activity, while FanDuel Casino continued its upward trajectory.

Jackson acknowledged the customer-friendly sports results, particularly in November’s NFL, but underlined the sustained strong momentum propelling the business into 2024.