Earlier this morning, Flutter Entertainment Plc announced its H1 2023 interim results. Following the release, the US gambling company held a conference call hosted by its CEO Peter Jackson.
In the first half of 2023, Flutter reported profitability in the US and across the board. The company also noted its Adjusted EBITDA of $606 million (Reported EBITDA of $553 million) was in line with expectations.
Jackson said: “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.”
Jackson also highlighted Flutter’s size, revenue, and market share, which are still making it one of the largest online gaming businesses in the world, and in the US.
FanDuel attracts 2 million new players in the US
Flutter said that its FanDuel brand had delivered a remarkable performance in the US. The company reported $100 million adjusted EBITDA in H1 as continued product innovation.
The operator attracted over 2 million new players, driving revenue growth of 63% and consolidating the number 1 position.
“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%.
The US business was profitable in the first half with FanDuel generating over $100m 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.”
The company’s US segment consists of FanDuel, TVG, Stardust and PokerStars, earning revenues from sports betting, daily fantasy sports, online casino and poker sites. Flutter recently announced the closing of the FOX Bet sports betting platform by Aug. 31.
Flutter saw solid performance in the UK and Ireland
Outside the US, the Group saw a solid performance in its international division, especially in the UK and Ireland.
Highlights from Fluter’s 2023 Interim Results include:
- UK & Ireland (revenue +13%): Product enhancements and efficient generosity underpinning recreational customer growth and driving market share gains in both sports and gaming
- Australia (revenue -1%): Effective retention of enlarged customer base (AMPs +7%), offset by Covid spend reversion and point of consumption tax changes
- International (revenue +8%): Division at a growth inflection point, ‘Consolidate and Invest’8 markets driving performance, now comprise 77% of divisional revenue and growing at +19%
Flutter’s H2 started in line with market expectations
Flutter said H2 has started “in line with expectations.”
Assuming normalized sports results for H2, the company anticipates full-year Adjusted EBITDA to be broadly in line with market expectations:
- US: Net revenue of between $4.6bn – $4.96bn ($5.7bn – $6.2bn) and Adjusted EBITDA of between $114.5m – $241.7m ($120m – $240m)
- Group ex-US Adjusted EBITDA of between $1.8bn – $2bn, with strong momentum in the UK&I and internationally, offset by softer-than-expected market conditions in Australia