The latest trading update for the year 2023, from Flutter, has painted a predominantly rosy picture of the company’s financial health, buoyed noticeably by its robust growth in the US market. Throughout all its global sectors—with Australia being the sole anomaly—the group observed a significant uptick in revenue, demonstrating its resilient and diversified business model.
At the forefront of Flutter’s success story this year was FanDuel, its US-facing brand, which witnessed a stellar 38% increase in revenue compared to the previous year, amounting to an impressive £3.06 billion. Continuing the trend established in 2022, Flutter’s US operations have once again emerged as the powerhouse revenue contributor, accounting for 37.9% of the group’s total earnings.
When broken down, the figures from the US paint an even brighter picture. Sports revenue on a constant currency (CC) basis climbed by 39%, while the gaming sector saw an even more impressive 47% surge. The active engagement of customers in the US was also notable, with a 38% rise in the average monthly players reaching over 3.2 million—a testament to Flutter’s strong foothold and growing appeal in the market.
Shifting focus to the UK and Ireland, the group’s performance remained solid, with revenue growing by 15% to £2.46 billion. This growth maintained its pace on a constant currency basis at 14%. Sports betting and gaming were the primary drivers, with their revenues increasing by 12% and 17% respectively in CC terms, while the region also experienced a 5% rise in average monthly players, amounting to 3.9 million.
Analyzing the UK and Ireland segment further reveals a consistent 15% year-on-year rise in revenue, totaling £2.16 billion, with retail enjoying a 10% hike to £300 million. Both sports and gaming in the retail sector charted 10% and 8% growths respectively on a CC basis.
In terms of international markets, barring the US, UK, Ireland, and Australia, Flutter’s operations also encountered noteworthy success. This diverse segment experienced a 36% leap in annual revenue to £2.29 billion. These markets showed considerable strength in sports betting, which soared by 60% CC, and gaming at 29% CC. The engagement levels globally were also affirmative with average monthly players in the international business rising by 31% to 4.1 million. This segment boasts prominent brands such as Italy’s Sisal, PokerStars, and Adjarabet, endorsing Flutter’s wide international reach.
Contrasting with the positive outcomes in other territories, Flutter’s Australian division faced a downturn, with an 8% decline in year-on-year revenue, resulting in a £1.17 billion intake. In Australia, the company’s services are limited to sports betting, which itself recorded a 3% decrease on a constant currency basis. Nevertheless, not all indicators were discouraging, as there was a slight 2% increase in average monthly players in Australia, totaling 1.1 million.
In summary, while Flutter had to navigate a choppy wave in the Australian market, its overall performance in 2023 has been one of considerable growth and reach, underscored by resounding success in the US, steady gains in the UK, and Ireland, and promising expansion in various international territories. Further details on the company’s outlook and strategic movements are poised to follow as investors and market analysts keenly observe Flutter’s trajectory in the dynamic world of global gaming and sports betting.
