Positive outlook: "No signs of consumer slow down"

FanDuel speeds up US sports betting market share to 51% in Q2, boosts Flutter H1 revenue growth

Peter Jackson, CEO of Flutter, during H1 results presentation.
Reading time 2:19 min

Flutter Entertainment on Friday reported overall revenue growth of 9% in the first half of 2022, driven by recreational player expansion by over one million players and positive U.S. results, including its FanDuel brand speeding up its sports betting market to 51% in Q2, with number one position in 13 of 15 states. Monthly users in the U.S. climbed 49% from a year ago and revenue in the division soared 61%, or 50% on a constant-currency basis.

The Ireland-based owner of Paddy Power, Betfair and PokerStars also noted it has increased the proportion of customers using safer gambling tools to over one third. Flutter's average monthly players climbed 14% to 8.7 million.

Peter Jackson, Chief Executive Officer of Flutter, said the company remains "firmly on the path to profitability in 2023, driven by our compelling customer economics and disciplined investment."

In that sense, Flutter said the second half of the year has started in line with expectations, with "no discernible signs of a consumer slow down currently," though the operator is "closely monitoring key spend indicators given the uncertain macro economic outlook." In the US, it estimates net revenue ahead of expectations at between £2.3B and £2.5B ($2.85B - $3.1B) and Adjusted EBITDA loss of between £225M and £275M. 

"Outside of the US, the business remains well positioned thanks to its leadership positions in its mature markets and the investment we are making in attractive, high growth markets such as India, Canada and Brazil," Jackson said. "In the UK, while the delay in publishing the Gambling Act Review White Paper has been disappointing, we are confident that the safer gambling changes we have already made to date position us well for the future. In Australia, we delivered another excellent performance with revenue and players continuing to grow. We were also delighted to welcome Sisal to the Group earlier this month, a business that performed strongly during H1."

Flutter's Adjusted EBITDA amounted to £476 million, in line with expectations. Net debt increased £322 million year-on-year to £3,004 million at 30 June 2022 including H1 completion of Tombola acquisition. 

Flutter also said it will host an investor day on its US business on 16 November 2022.

See Flutter's H1 2022 presentation here.

Late last month, Flutter announced the resignation of the CEO of its UK & Ireland (UK&I) business, Conor Grant, who will leave his role before year-end. Ian Brown, former CEO of Booking.com’s Trips division and an Oliver Wyman Senior Partner, will succeed Grant. He will join Flutter in September, assuming responsibility for the Paddy PowerSky Betting and GamingBetfair, and Tombola brands in the UK & Ireland. 

Conor Grant (left) and Ian Brown

The move came one day after FanDuel announced two new leadership appointments. Chief Legal Officer Christian Genetski has been promoted to the role of President, and Chief Marketing Officer Mike Raffensperger has been named to the newly created position of Chief Commercial Officer. 

On Wednesday, the Nevada Gaming Control Board recommended a FanDuel-branded sportsbook operated by Boyd Gaming at Fremont Casino Las Vegas, and also issued a licensing recommendation for Flutter Entertainment and six Flutter executives. The Nevada Gaming Commission will make a final decision on August 25. This would mark FanDuel's return to Nevada operations after seven years.

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