Energised by FanDuel, Flutter Entertainment Posts Spectacular H1

A US listing looks imminent for leading-edge Flutter in the wake of super-impressive H1 results.

Flutter Entertainment, the Ireland-origin, UK FTSE-100 Omnichannel, which has stormed America with its FanDuel sportsbook, has posted a spectacular H1 with top results across all key metrics.

The “Masters Of All They Survey” are now poised for a US stock listing, either later this year or at the start of 2024.

Flutter’s Group Revenue increased by 42 percent to £4.8 billion (US$6.12bn), year-on-year, during the half ending 30 June 2023.

Group EBITDA rose 76 percent to £765 million in H1 (US$975.51m), while Profit After Tax surged to a positive £128 million (US$163.22m) — after the loss of £112 million (-US$142.85m) posted in the first six months of last year.

Key metrics also showed a near 30 percent increase in Average Monthly Players (AMPs), of some 12,285,000 regular bettors in the half. And earnings-per-share were listed as 73.8 pence.

Results for Flutter’s market-leading FanDuel sportsbook in the US, which recorded an Adjusted EBITDA of £79 million in the half (US$100.73m), were particularly impressive.

With the exception of a flatlining Australia, Flutter Entertainment reported revenue growth across all its principal financial markets: The UK and Ireland, home of the flagship Paddy Power and Betfair brands, saw 13 percent growth; while International Revenues rose 13 percent.

Significantly, and in a major boost for Flutter’s leading-edge Responsible Gaming initiatives, 42 percent of the company’s clients used the “Play Well” tool, validating the £45 million investment in the app over the half (US$57.38m).

“The first half of 2023 marks a pivotal moment for the Group, with our US business now at a profitability inflection point, helping transform the earnings profile of the Group and significantly enhance our financial flexibility,” affirmed Flutter CEO Peter Jackson.

“Group performance in the period was very strong, with delivery of our strategic objectives resulting in pro forma EBITDA growth of 37 percent.

“The US delivered another exceptional performance.

“We acquired over two million new players in the period, cemented our leadership position in sports and grew our share in iGaming to 23 percent. The US business was profitable in the first half with FanDuel generating over US$100 million in EBITDA.

“This profit profile provides us with a clear platform to invest materially in the second half, as we strive to continuously improve our customer offering. Our player acquisition strategy has consistently delivered, generating excellent returns on investment, embedding even greater value into our customer base, and increasing our future profitability.”

Going forward, Flutter Entertainment expects H2 to be consistent with current market expectations.

Projections for the US segment’s net revenue top £3.9 billion (US$4.97bn), with an expected Adjusted EBITDA in the region of £90-£190 million (US$114.76m-242.28m).

Anticipated Adjusted EBITDA outside the US in H1 lies between £1.44-£1.6 billion (US$1.83bn-2.04bn).

Added Jackson: “The second half of the year has [already] started well and we look forward to adding a US listing for Flutter shares later this year or early next year.”

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