Flutter CEO talks up potential Brazil M&A as he lauds UK product developments
Peter Jackson says inorganic growth could play a role in Latam approach as live casino and bet builders receive praise
Flutter Entertainment CEO Peter Jackson has hinted at bringing the company’s M&A strategy to Brazil to secure a podium position following regulation of the market.
Speaking to analysts following the publication of the company’s latest trading update, Jackson was pressed on Flutter’s plans for Brazil in a rare question away from the US.
Flutter is live in the market with Betfair and PokerStars, with both brands coming under the group’s International arm.
The International division reported a 36% year-on-year (YoY) increase in revenue on a constant currency basis for full-year (FY) 2023, with a 60% leap in sports betting revenue alone.
Brazil is on the verge of regulating the sports betting and igaming market after President Luiz Inácio Lula da Silva gave his approval late last year.
The country’s Ministry of Finance is now in the process of finalising the regulatory decrees ahead of the market going live.
Jackson suggested that M&A could well play a pivotal role in the firm’s approach to Brazil, replicating its pipeline across the International division which has seen it snap up Sisal, Adjarabet and a 51% stake in MaxBet.
The CEO said: “I think from a Brazilian perspective, we’ve been very pleased with the performance of the Betfair and PokerStars brands in the local market. We hope at some point the regulation will be signed in Brazil.
“If you look at our approach to markets around the world, we have always been focused on organic growth and that’s something we’ve been doing in Brazil, but we’ve also used M&A as well as a means of cementing positions on the podium and trying to achieve that gold medal position.
“You shouldn’t be surprised if we continue to push from an organic basis and also contemplate whether there other ways of increasing our scale and in the market,” he added.
Elsewhere, Jackson talked up the group’s performance in the UK and Ireland with its Sky Bet, Betfair, Paddy Power and tombola brands.
Online revenue increased 15% YoY for FY 2023 and 21% in Q4 for the division, as Jackson pointed to improvements across product for the brands.
Online sports revenue jumped 21% YoY in the period while gaming revenue also improved, rising 22% in the fourth quarter.
The CEO namechecked the Sky Bet Acca Freeze launch and improvements to the group’s bet builder capabilities as developments to augment its “recreationally focused business”.
Jackson continued: “From a gaming standpoint, we’ve continued to drive strong cross-sell conversion from Sky Bet and Paddy Power to our casino products.
“This is an area where our strength in sports is definitely helping us. We’ve also made some significant enhancements to the quality of the product that we have available to customers around the live casino on Sky Bet and some of the slots changes for Paddy Power.
“We have delivered a very strong performance in gaming and I am very pleased with what the team has done,” he added.