Online revenue growth of 42%, driven by online player growth of 36%

Flutter Q1 revenue rises by 33% as US expands rapidly

Revenue in the quarter grew 135% to £288m ($396m). FanDuel Group accounted for 91.6% of revenue (Full Year 2020: 89.1%).
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Flutter Entertainment, the parent company of Paddy Power, Betfair and Sky Bet, has hailed a strong start to 2021 as it announced online revenue growth of 42 per cent in a trading update for the first quarter of the year on Thursday.

Flutter Entertainment has reported a strong start to 2021 after a boom in online gambling increased its revenues by a third.

In the three months to 31 Mach, the owner of FanDuel and Paddy Power saw the average number of monthly players surge 36% to 7.67m, with those in the US more than doubling, up 132%.

That drove a 43% jump in sports revenues to £896m at actual currencies, alongside a 18% increase in gaming revenues to £589m.

Total revenues grew 32% to £1.49bn with the online segment registering growth of 41% to £1.47bn.

The group saw particularly strong growth in the US, where sales soared by 135% to £288 million following state launches in Michigan and Virginia following the relaxation of local gambling restrictions.

Revenue in the quarter grew 135% to £288m ($396m). Of this, FanDuel Group accounted for 91.6% of revenue (Full Year 2020: 89.1%), with FOX Bet (including PokerStars US) accounting for 8.4%.

Customer acquisition continues to exceed expectations with over 900,000 new customers acquired during the quarter, helped by high levels of engagement around Super Bowl and expansion into 2 new states. The total average monthly players grew by 132% to 1.6m. Flutter recorded a 36% share of the online sportsbook market during Q1.4 Sports revenue increased 130% in the quarter, with sportsbook 227% higher and growth across our other sports products (TVG horse racing and daily fantasy sports) of 51%.

Sportsbook stakes grew 235%, with the online sportsbook now available in 10 states compared to 4 in Q1 2020. Performance in these 4 more mature states remains very encouraging with staking growth of 93% in Q1. Sportsbook net revenue margin was broadly flat year on year as a 100 basis point expansion in expected margin was offset by investment in customer acquisition promotional activity. The expected margin increase is derived from our leading product offering which generates more activity on higher margin parlay products, such as Same Game Parlay™, combined with ongoing refinement of our pricing capabilities.

Gaming revenue increased 146% to £99m ($137m) aided by the successful Michigan launch in January. Existing casino states continue to perform strongly with revenue growth of 89% in the quarter. Online gaming market share for Q1 increased to 23%, from 20% in Q4 2020.

"As previously disclosed Flutter is giving consideration to a potential US listing of a small part of FanDuel Group. No decision has yet been made but should we proceed with such a transaction, the assets of FOX Bet (including PokerStars US) would sit outside the perimeter of the listed vehicle. In 2020, the FanDuel assets generated revenue of £619m ($800m) and an EBITDA loss of £113m ($148m)," stated the group.

Peter Jackson, Chief Executive
, commented: “2021 is off to a strong start for the Group. We continued to significantly grow our global player base which in turn drove a 42% increase in our online revenue. At the same time, safer gambling continues to be a key priority across our markets with new measures introduced including our Gamban partnership in the US and development of the planned Affordability Triple Step in the UK."

"In the US, we continue to lead the market with revenue of almost $400m in the quarter. We believe that the quality and breadth of our offering remains a key differentiator for FanDuel sports and the key driver of our leadership position. Our US business had over 1.6m average monthly players in Q1, meaning that it is now twice the size of our Australian business and is quickly closing in on our International division. We are continuing to consider our options with respect to a possible US listing of a small shareholding of FanDuel Group. No decision has been made at this time and we will update the market as appropriate," he concluded.

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