Playing The FanDuel Advantage, Flutter Posts A Killer Q1.
Boosted by the sterling performance of its US sportsbook, FanDuel, currently smashing all like-for-like opposition in North America, Paddy Power owner Flutter Entertainment has posted a killer Q1 with group revenues up 46 percent in the quarter to £2.4 billion (US$3bn).
It’s a mighty statement as the Irish-origin FTSE-100 Omnichannel seeks a second listing on the NYSE in a bold bid to unlock a valuation uplift and access to a greater “liquidity pool”.
FanDuel, fast emerging as the number one sportsbook in America, in all markets where it operates, leaving fierce rivals DraftKings and BetMGM in its wake, powered a 61 percent surge in group sports wagering revenues to £1.49 billion (US$1.86bn); while iGaming grew by an impressive 44 percent to £916 million (US$1.14bn).
“The combination of the FanDuel Advantage and the Flutter Edge drove further market share gains in the US,” said Flutter Group CEO Peter Jackson.
“We added over 1.5 million customers in the quarter and we remain the clear market leader.
“Our US sports betting handle of US$10.9 billion (US$13.63bn) represented almost 60 percent of the Group’s total sportsbook stakes.”
Abetted by recent successful launches in Massachusetts and Ohio states, FanDuel is now well on course to deliver 2023 full year profitability, as previously promised by Jackson.
And–post Covid19 lockdowns–Flutter’s UK and Ireland home brands are no slouches either.
Here, revenue grew 17 percent, year-on-year, to £608 million (US$760.6m) in Q1, with online sports and iGaming growing by the same percentage metric.
Flagship Paddy Power high street bookies, for their part, enjoyed a 15 percent growth to £77 million (US$96.32m) during the quarter, ending March 31.
In continental Europe, Flutter’s acquisition of Italian gambling giant Sisal in August last year is also paying dividends — and far quicker than many argued.
Only Oz Disappoints
Amid an overall 69 percent growth in international revenue to £605 million (US$756.86m), compared to £327 million (US$409.07m) in Q1 last year, Sisal revenue increased 19 percent in the quarter.
While booking further market penetration in potentially high-growth India and Turkey, only Flutter’s Sportsbet brand in Australia disappointed with a four percent dip in revenues to £289 million (US$361.54m).
With shareholders already greenlighting the proposed New York listing, Flutter now looks supremely placed to build strength on strength.
Underlined CEO Jackson:
“We [are] pleased to receive overwhelming support among our shareholders for the addition of a Flutter US listing.
“The strategic and capital markets benefits this will bring to Flutter will position the Group well for its next phase of growth.”