Online gaming and sports betting giant Flutter Entertainment has posted a revenue hike of 54% in the first quarter of the year, driven by a near doubling in its growing US unit and sharp recovery in Britain and Ireland. For the three-month period ended March 31, the gaming company delivered group revenues of £2.4 billion ($3 billion), up from £1.6 billion in Q1 2022.
During the quarter, Flutter maintained its leading 50% share of the US sports betting market with its FanDuel brand after revenue jumped 92% year-on-year on a constant currency basis. The increase follows a recent vote by Flutter shareholders to list its shares in New York, to better reflect the burgeoning importance of the US markets and provide better access to capital.
As for Britain and Ireland (UKI), the group expanded its revenue in the region by 17%, while average monthly players were up by 11%. According to the Paddy Power, Betfair and Sky Bet owner, this reflects the “reshaping” of its second-largest division to draw more recreational gamblers. The UKI revenue hike compares favorably to Q1 2022, a period that was impacted by measures to curb gambling addiction.
Peter Jackson, Flutter CEO, put about half the growth down to product improvements and noted that competitors tardily adopting safer gambling measures may also have helped the group outperform the market, which he estimated was flat on a yearly basis. "I said back in March I felt like we had our mojo back and you can see why I was talking about the (UKI) business so positively," Jackson said in a call with investors, as reported by Reuters.
Peter Jackson, Flutter CEO
Following the release last week of the UK’s new White Paper on gambling, which features new regulations to combat problem gambling, Flutter warns the move could cost it about £50 to £100 million pounds ($63 million to $125.6 million) in lost revenue from 2024, on top of the £150 million ($188 million) already impacted by existing measures.
According to the gambling giant, the new hit would be the result of a combination of new stake limits on online gambling, a statutory levy on betting firms, and increased affordability checks. However, final regulatory details are yet to be revealed by the UK government, as most proposed items are set to undergo consultation with the industry and other stakeholders.
As for other updates, Flutter also announced revenue rose 69% on a constant currency basis in its international division. This unit includes the recently acquired Italian gaming operator Sisal, which Flutter said has been performing “exceptionally well.” In contrast to these results, revenue fell 4% in Australia.
In its quarterly report, Flutter restated its belief of being firmly on track this year to become the first US operator to turn a profit since a nationwide ban on sports betting was lifted in 2018. Back in November, the Dublin-based firm forecast that FanDuel’s revenue would jump to around $15 billion over the long term, twice Flutter’s entire revenue last year.
As for the incoming US shares listing, the company said in its quarterly report that it expects to follow through on those plans before the end of the year. "The strategic and capital markets benefits this will bring to Flutter will position the Group well for its next phase of growth," said Jackson, as reported by Business Plus.
"In the US, the combination of the FanDuel Advantage and the Flutter Edge drove further market share gains," Jackson further said of the North American operations. "We added over 1.5 million customers in the quarter and we remain the clear market leader. Our US sports betting handle of $10.9 billion represented almost 60% of the group's total sportsbook stakes."