Everyone Loves a Winner, Amid Top Year-End Forecast, Flutter Posts Big in H1
With sports betting now legal in some two-dozen US states, and counting, this financial half has been all about the market dominance of its FanDuel brand for Irish bookmaker Flutter Entertainment.
In 2018 Flutter—then in its Paddy Power Betfair iteration—bought majority control of FanDuel for an estimated US$550 million (£398m/€470m).
It was a steal.
Today, having cornered almost 50 per cent of the online sports betting market, and with only DraftKings as a distant rival, FanDuel is valued at a mighty US$18 billion (£13.03bn/€15.37bn) — turning Dublin-headquartered FTSE-100 Flutter into a takeover target, say industry watchers.
Back to hard facts, Flutter has now reported revenue of £3.1billion for H1 2021 (US$4.28bn/€3.65bn), a 30 per cent year-on-year increase; buoyed by the seamless integration of the recently-acquired Stars Group, the abatement of Covid and the wonder that drives FanDuel — the return of real-world sporting competition.
Fan and punter loyalty was key to the process.
Across its territories, the number of average monthly players (AMPs) grew by 40 per cent. AMPs in the British and Irish market grew by 44 per cent in the half and 52 per cent in Australia.
Flutter’s US revenue shot up 159 per cent to £652 million (US$900.39m/€768.86m) during the half.
“In the US, we remain the number one online sports betting operator by some distance thanks to the quality of our products and the extensive reach of the FanDuel brand,” said Flutter’s Chief Executive Peter Jackson.
“The customer economics we are seeing in the US bode very well for the future, with early FanDuel customers generating positive payback within the first 12-months of acquisition.”
Based on the H1 bounce, Flutter has now upped its year-end forecast to an Adjusted EBITDA of £1.37 billion (US$1.89bn/€1.61bn), the highest, in its non-US markets and net revenue of £1.425 billion (US$1.97bn/€1.68bn), maximum, in the US, with an Adjusted EBITDA loss of up to £275 million (US$379.76m/€324.28m).
“We have cemented our leading market share in each of our core markets by continuing to make substantial customer-focused investments in our products, brands and value propositions,” added Jackson.
“The first half of 2021 exceeded our expectations [and} the second half of the year has started well. We remain absolutely focused on extending our sports product advantages and replicating our market share success in further states as they regulate.”
There can be no doubt that the world of gaming is keenly watching and listening to his every flutter.