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US Sector Helps Flutter See Q3 Revenue Boost, NYSE Listing Coming 2024

Written By Tebearau Egbe on November 20, 2023
Stock Buyers Raise Hands On Exchange Market Floor with Flutter Entertainment logo and Q3 2023 financials

According to the recently published financial results for Flutter Entertainment’s third quarter 2023, its US brand, FanDuel, was responsible for bringing them up to an 8% year-on-year revenue growth.

Flutter Entertainment’s revenue growth status for Q3

For the third quarter, Flutter amassed revenue of $2.47 billion. This translated to a 7.6% increase in comparison to 2022’s consolidated revenue, which sat at $2.18 billion.

Breaking it down to the different segments, sports revenue generated $1.36 billion, causing a 2% decrease from last year. Nonetheless, this decrease was offset by a 22% growth in gaming revenues, which was $1.11 billion.

Peter Jackson Flutter’s chief executive, commented in Flutter’s Q3 2023 report:

“We are particularly pleased by the great progress we are making in the US. We are the first online operator to achieve structural profitability, and the strong ramp in EBITDA during 2023 will continue into 2024 and beyond, as our profit margins expand materially.”

FanDuel bolsters Flutter’s US revenue in Q3

FanDuel, which was acquired in 2018, has turned out to be one of the most innovative and top revenue contributors in the US to Flutter. And it has grown to be in the top two positions in iGaming with a 23% market share.

For this third quarter, its US ventures were able to garner $809 million in revenue, signifying 12% growth when compared to the previous year. Despite a 10% growth in sports betting revenues in the US, adjusted for exchange rates, a 170 basis-point decrease in net revenue margin offset the figures.

Nevertheless, the overall net revenue witnessed a 12% increase. The growth in this sector is due to strategic marketing campaigns targeting new player acquisitions, player retention initiatives, and ongoing product innovation efforts.

On the other hand, the iGaming segment in the US experienced a 52% increase in revenue, adjusted for currency fluctuations. FanDuel specifically observed a 23% rise in its iGaming market share during Q3, driven by a substantial 38% growth in average monthly players. Jackson continued:

“The NFL season is off to an excellent start, with our product leadership driving average monthly player growth of 38% to 2.6m in the quarter. I am excited about our plans heading into the sports-rich months of November and December as we execute on our winning strategy which, combined with the FanDuel Advantage, keep us leading the industry.”

UK and Ireland revenue growth driven by retail and online sector

Flutter experienced growth in the UK and Ireland, reaching a revenue of $685 million. Specifically, there was a 9% increase in the retail sector and an 11% increase in the online segment.

In total, Flutter’s international ventures generated $652 million in revenue, reflecting a 16% rise. The acquisition of the Italian online gaming operator Sisal in August 2022 was the primary cause of the increase.

“In Q3, our UK & Ireland brands continued to take share across online and retail channels through our winning product offering. In addition, our Consolidate and Invest markets drove strong momentum within our International business.

We were pleased to add MaxBet to the Flutter portfolio, in line with our strategy for acquiring “Local Hero” brands in attractive markets,” said Jackson.

Australia continues to experience a decline in revenue

Contrary to revenue trends observed in other regions, Australia saw a decrease of 18%, leading to a revenue of $317 million. The company attributes this downturn to the competitive nature of the racing market and anticipates a similar trend in the coming year.

NYSE listing expected soon

Flutter has provided a status report on the developments pertaining to its national supplemental listing. In April, shareholders approved this step, and the business expects the listing to go live in the first quarter of 2024.

Additionally, Flutter has selected the New York Stock Exchange as its potential trading venue for its regular shares in the US following a very competitive bidding procedure.

Due to this development, Flutter has opted to withdraw its listing on Euronext Dublin, as the board deems it fitting to uphold only two listings to reduce regulatory complications.

Photo by PlayUSA
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Tebearau Egbe

Tebearau Egbe has written about gambling for more than four years. She has a Master's degree in philosophy and possesses a unique ability to dissect complex industry developments, distilling them into insightful narratives for readers.

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