Flutter Sees 7.6% Growth in Q3 2023
Flutter Entertainment has revealed its third-quarter 2023 results, unveiling a notable 7.6% revenue hike, totaling $2.47 billion. This surge is largely credited to the strong performance of the U.S.-focused brand FanDuel, acquired by Flutter in May 2018. Despite this growth, favorable sports outcomes for customers are anticipated to drive annual earnings towards the lower end of the projected range.
Flutter Entertainment has announced its third-quarter 2023 results, revealing a significant 7.6% revenue hike, amounting to a whopping $2.47 billion, largely thanks to the strong performance of the U.S.-focused brand FanDuel.
?Chuma A/Unsplash
US Was Flutter Entertainment’s Most Profitable Market, According to Results
Flutter Entertainment has recently revealed its third-quarter results for 2023, demonstrating a notable revenue upturn of 7.6%, reaching $2.47 billion. The surge in revenue is primarily credited to the remarkable performance of its U.S.-based brand, FanDuel, an acquisition made by Flutter in May 2018. However, despite this success, the company anticipates that sports outcomes favoring customers may push full-year earnings towards the lower end of the projected range, leading to a decline in its shares.
In the United States, the third-quarter revenue amounted to $809 million, depicting an 11.7% increase compared to the corresponding quarter of the previous year. This revenue constitutes 32.8% of Flutter’s overall revenues, solidifying the U.S. as the company’s most lucrative market, surpassing historically robust regions like the United Kingdom and Ireland.
During a typically quieter period, sports betting revenues witnessed a slight dip of 1.9%, totaling $1.36 billion. However, this decrease was effectively offset by a noteworthy 22.2% surge in gaming revenues, amounting to $1.11 billion. This balanced performance across betting and gaming segments underscores Flutter Entertainment’s adaptability and diversified revenue streams amid evolving market conditions.
US Sports Betting Revenues Increased by Impressive 10% in Q3 2023
In the U.S. gambling market, sports betting revenues surged by 10% after adjusting for exchange rates. This increase was significantly bolstered by a remarkable 40% spike in betting volume. However, despite this uptick, a 170 basis-point drop in net revenue margin balanced the figures, resulting in a more moderate 12% growth in net revenue. The growth was primarily attributed to strategic investments in marketing initiatives aimed at attracting new customers, innovative product offerings, and effective retention strategies targeting existing customers.
Within the U.S. iGaming sector, revenues experienced a substantial 52% boost, also adjusted for currency variations. Notably, FanDuel’s iGaming brand significantly expanded its market share to 23% during the quarter, propelled by a robust 42% surge in average monthly active players. Analyzing the combined online sports betting and iGaming revenues in states where Flutter operated before 2022, there was a solid 12% rise. Flutter emphasized that the growth in iGaming played a crucial role in offsetting the relatively lower revenues generated from sports betting activities.
In the United Kingdom and Ireland, Flutter witnessed an 11.2% revenue increase, totaling $685 million. This surge was driven by noteworthy growth in both the online segment, up by 11.5%, and retail, which increased by 9.1%. Successful early-season campaigns and the expansion of content and promotional initiatives significantly contributed to this growth.
On an international scale, the company’s revenue soared by 15.7%, hitting $652 million, with the acquisition of Sisal playing a significant role in this positive trajectory. Markets such as India and Turkey exhibited substantial organic growth, contributing to this impressive revenue increase. Contrarily, Australia faced challenges, encountering a 17.9% revenue decline, totaling $317 million. Flutter attributed this reduction to a demanding racing market and anticipates this downward trend may persist into 2024.
Flutter cautioned that customer-friendly sports outcomes might influence 2023 earnings, excluding the U.S. market, to gravitate toward the lower end of its previously forecasted range. Consequently, adjusted EBITDA is now projected to reach approximately ï¿¡1.44 billion ($1.76 billion), falling within the earlier stated range of ï¿¡1.44 billion to ï¿¡1.60 billion.
FanDuel Marked Responsible Gambling Awareness Month in September 2023
FanDuel, a key player in the landscape of U.S. sports betting, actively engages in Responsible Gaming Education Month (September) to underscore its dedication to responsible gaming advocacy.
In its latest moves, FanDuel has enlisted the support of notable sports personalities, Carli Lloyd and Tom Kim, appointing them as FanDuel Responsible Gaming Ambassadors. They join forces with Craig Carton, a prominent sports radio and television personality who has been advocating for responsible gaming as FanDuel’s national ambassador since September 2021.
Aligned with these ambassadorships, FanDuel is launching a series of new initiatives that leverage the influence of talent, content, and partnerships. These efforts seek to educate sports enthusiasts on the significance of responsible gaming practices. Carli Lloyd and Tom Kim will collaborate with FanDuel to emphasize responsible play and promote the available tools for bettors to manage their gaming activities, encompassing deposit limits, wager limits, and time constraints. Their involvement will extend to participating in responsible gaming content and tailored advertising campaigns alongside prominent figures such as NFL legend Rob Gronkowski and Kay Adams, the Host of FanDuel TV’s Up & Adams, all geared towards encouraging responsible gaming practices.
FanDuel Announced Golf Centre in August 2023
FanDuel Group, a part of Flutter Entertainment, has expanded its golf betting options by integrating IMG Arena’s Golf Event Centre into its platform. This strategic move introduces a variety of new betting markets to its user base, including prop bets like closest-to-the-pin and longest drive, as well as more detailed stroke-by-stroke wagers.
The integration of the Golf Event Centre goes beyond just offering more betting choices. It provides users with real-time tracking of every shot, granting access to hole profiles and course maps. Additionally, FanDuel customers will have access to a customizable live leaderboard, enhancing the interactive nature of the golf betting experience.
Sports and betting enthusiasts looked forward to the upcoming launch of this golf betting tool, coinciding with the FedEx St. Jude Championship scheduled to start on August 10. This move emphasizes FanDuel’s dedication to diversifying its offerings and showcases ongoing industry efforts to innovate and adapt to changing consumer preferences.
Scott Warfield, the vice president of gaming at PGA Tour, believes that the integration of the Golf Event Centre into the FanDuel Sportsbook will come as a boon to golf enthusiasts:
“Integrating the Golf Event Centre into FanDuel Sportsbook will be a massive win for golf fans. They will have a robust offering of betting options to choose from as they tune in to see their favorite players and tournaments. The Golf Event Centre promises to be an exciting addition to the FanDuel platform, and we appreciate the contributions they have made to help us grow engagement in the game of golf.”
