Flutter Entertainment announced its Q3 performance, seeing $2.18B in corporate revenues for July, August and September. That is a 31% year-over-year increase compared to 2021 results.
US growth boosted the company’s healthy rise, with an 82% increase equaling $689.5M and the acquisition of Sisal.
The company doubled its US revenues to $598M, which reflected FanDuel’s No. 1 position US online sportsbook with 42% market share.
Flutter Entertainment confident it will be profitable in 2023
The US sports betting operator has been showing its dominance thanks to a solid start to the NFL season as well as the NBA season start. It only supported Flutter’s prediction that its greatest US asset will achieve positive EBITDA for 2023.
Group CEO Peter Jackson commented:
“Flutter delivered a strong Q3 performance with pro forma growth of 11% in both revenue and average monthly players. Our US division is now our largest and generated $700m in revenue, up 82%.
We are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season. The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.”
Apart from the US’ excellent revenue performance, the UK and Ireland saw a 3% rise, reaching $586.9M toward Flutter’s combined revenue.
The company’s Australian revenue for Q3 2022 saw a 21% decline in comparison to Q3 2021, while its international revenue grew 43% year-on-year.
Are Flutter’s expectations too high?
Flutter expects full-year US revenue to be $2.95 B to $3.2B, which exceeds its previous estimate of $2.85 B to $3.1B, with an adjusted EBITDA loss still projected to be in line with the company’s previous guidance of $300M-$360M.
Flutter is confident it will achieve its EBITDA target of $1.49B to $1.6B in spite of continued Irish and UK weaknesses.
As Jackson concluded:
“Outside of the US, we welcomed Sisal, Italy’s leading gaming operator, to our International division during the quarter and look forward to working with the team to grow the business in Italy and in other International markets.
We were delighted with the successful outcome of our arbitration process with FOX regarding the price of their option to acquire 18.6% of FanDuel. This vindicates our position on the matter, with FanDuel valued at $20bn based on its fair market value at 3 December 2020 and provides important clarity on the significant cost required to buy into the number one US gaming business.
“As we look ahead, our product and geographic diversification, as well as our recreational customer base, position us well for future growth.”
Flutter brands still top US betting market
FanDuel remains Flutter’s No.1 brand, a US online sportsbook with 42% of the market share. The product accounts for 33% of Flutter’s revenue.
Flutter’s FanDuel online sportsbook first launched in the US in September 2018 in New Jersey. It is now live in 15 US states. So far, FanDuel online casino games have been present in five states.
High-profile case Flutter vs. Fox Corp. came to an end
In a high-profile case between Flutter and Fox Corp, the Judicial Arbitration and Mediation Services (JAMS) ruled in favor of Fox Corp earlier this month.
Under the NY arbitrator’s ruling, Fox Corp. retained the right to purchase “18.6% of FanDuel for $3.72 billion, with a 5% annual escalator.”
Although the option came at a significantly higher price tag than Fox initially sought, both sides claimed victory in the long-lasting dispute.