Flutter, a leading player in the global gaming and sports betting market, has proudly revealed a remarkable expansion in revenue during its 2023 operations, with all sectors contributing to growth except for Australia. This detailed performance analysis, which includes the company’s achievements in the fourth quarter, shows a pattern of increasing success, with its US-facing FanDuel operation as the standout star.
The American market has been exceptionally beneficial for Flutter in 2023, with FanDuel’s revenue surging by an impressive 38% from the previous year to reach a staggering £3.06 billion. This feat not only underscores the US as Flutter’s primary revenue driver, accounting for 37.9% of total group revenue, but also denotes a robust increase in monthly players who now surpass 3.2 million, a 38% hike compared to the year before.
Sports and gaming revenue within the US market experienced a remarkable surge on a constant currency (CC) basis, skyrocketing by 39% and 47%, respectively. Such figures clearly indicate the underlying robust health and soaring popularity of Flutter’s offerings in the competitive American landscape.
Shifting focus to the UK and Ireland operations, Flutter witnesses a sturdy 15% lift in revenue to £2.46 billion, attributing this spike to a 14% CC increase. Here, sports betting swelled by 12% on a CC basis, while gaming climbed an impressive 17%. As expected, Flutter’s strong player engagement in these regions is reflected in the 5% increase in average monthly players, now reaching 3.9 million.
Zooming in on the specifics, the UK and Ireland revenue breakdown reveals a consistent 15% year-on-year elevation to £2.16 billion, with both sports betting and gaming exhibiting vigorous double-digit CC growth. Meanwhile, retail revenue experienced a welcome 10% rise, reaching £300.0 million.
Beyond these territories, Flutter’s International arm celebrated a considerable revenue jump of 36% year-over-year to £2.29 billion, capturing the markets outside the US, UK, and Ireland, as well as Australia. A significant push in sports betting revenue was observed here, with a 60% uptick on a CC basis, while gaming ascended 29%. This sector has also successfully increased its average monthly players by 31%, totaling 4.1 million, thanks to the strategic inclusions of Italy’s Sisal, PokerStars, and Adjarabet.
However, the Australian front presented challenges, with revenue experiencing an 8% decline to £1.17 billion – a reflection of the competitive pressures and unique market conditions faced in the country. Despite Flutter offering only sports betting in Australia, the silver lining lay in the 2% ascension in average monthly players, who now number 1.1 million.
Examining the last quarter more closely, Flutter boasted a group revenue rise of 15% to £2.67 billion. Diving into the specifics, sports betting in Q4 hitched up to £1.66 billion and gaming to £1.02 billion. In the US, Q4 revenue leaped by 19% to £1.14 billion, championed by FanDuel which commanded a 43% gross revenue market share in its sportsbook and a notable 26% share in iGaming.
Nevertheless, Flutter identified disappointing revenue in this period, falling shy of its anticipated numbers by £147 million owing to customer-friendly sports results. Even so, better-than-expected gross revenue margins partially offset this shortfall.
Flutter CEO Peter Jackson reflected on these results with optimism, commending the collective force of the company’s localized brands and the global “Flutter Edge” advantages. Jackson highlighted FanDuel’s robust performance, particularly in the US during the peak sporting quarter, despite generous sports results.
In the UK and Ireland, Q4 revenue parallelly ascended by 19% to £647 million, a testament to market share gains through product innovations.
Although the Australian market slightly declined by 9% to £304 million, the trend aligned with expectations. Conversely, the International sector maintained steady growth, manifesting positive momentum across Flutter’s “Consolidate and Invest” markets.
Significantly, Flutter is at the cusp of enhancing its reach with a prospective listing of its ordinary shares on the New York Stock Exchange (NYSE). Anticipated to unravel on 29 January, the event aims to propel the group’s expansion plans in the US and attract deeper capital market access. However, this movement will lead to the termination of Flutter’s presence on Euronext Dublin, while the company will maintain its premium status on the London Stock Exchange’s FTSE 100 index.
To cap off a year of strategic progress, Flutter has accomplished the acquisition of a majority stake in the Serbian sports betting and gaming operator, MaxBet. With a 51% stake now under Flutter’s wings, the transaction is set to enhance the player experience within the Balkans. MaxBet, renowned in its domestic region, is expected to greatly supplement Flutter’s expanding global footprint.
