Flutter Entertainment said its US revenue missed expectations for the last quarter of 2024, but its FanDuel sportsbook and casino brand and the rest of the business’s earnings performed well.
Thursday’s press release revealed Flutter’s US, as well as UK and Ireland segments, revenues rose 19%, but Australia revenue decreased 9%.
Flutter showed strong Q4 momentum in the US
Flutter showed strong momentum in the US, with AMPs (average monthly number of players) growing 33%, sports bets increased 53%, and gaming revenue rose 49%.
Some of the Q4 2023 highlights:
- FanDuel Sportsbook remains No. 1 in the US, with 43% Q4 gross revenue market share and 51% net revenue share
- FanDuel Casino, the No. 2 iGaming brand with continued market share gains to 26% in Q4
Q4 gross revenue was impacted by customer-friendly sports results of $343 million, primarily mitigated by the expected gross revenue margin being better than anticipated. This resulted in Q4 US net revenue of $1.42 billion, $225 million below previous guidance provided in Q3, with an approximate 35% flow through to Adjusted EBITDA
In Flutter’s Q4 2023 Trading Update, Peter Jackson, Chief Executive Officer, commented:
“The Group traded well in Q4 underpinned by our leading local brands supported by global Flutter Edge advantages. In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength.
While sports results were very customer-friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024.”
Flutter will soon list its shares on the New York Stock Exchange
The US online gambling giant previously announced in December it would list its shares on the New York Stock Exchange on Jan. 29. Jackson said:
“Subject to the effectiveness of our Form 20-F registration statement with the US Securities and Exchange Commission, we are very excited that the addition of a US Flutter listing is now just days away.
This is a pivotal moment for the Group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets. I am looking forward to 2024 and further building on the momentum within the Group to continue delivering growth.”
Flutter shows global revenue progression
Flutter also runs successful brands like Paddy Power, Sportsbet and Sky Bet. Throughout the last quarter of 2024, they performed well in the UK, Ireland and Australia, showing good revenue results (+19%) in both iGaming and sports betting segments.
Meanwhile, international revenue grew 4%. Jackson describes in Flutter’s press release:
“Outside of the US, the quarter traded in line with expectations, with continued strong momentum in the UK&I supported by recent product enhancements and International growth driven by our “Consolidate and Invest” markets.”
In a transaction completed on Jan. 9, Flutter acquired MaxBet, a local hero brand in Serbia, a fast-growing regulated market, adding it to its extensive portfolio.