Flutter Entertainment enjoys 16% revenue rise in Q1 as FanDuel dominates

Flutter Entertainment has posted a 16% year-on-year (YoY) increase in Q1 2024 revenue while recording a $177m (£141m) net loss during the first three months of the year.

FanDuel remains the jewel in the Flutter crown as the US-facing brand helped drive revenue and EBITDA up significantly compared to Q1 2023.

However, a net loss of $177m means that metric has risen 59% YoY from Q1 2023’s loss of $111m.

Flutter has put that rise down to several non-cash charges, including a $184m loss linked to a change in the fair value of Fox option liability, which sat at $64m in Q1 2023.

While net loss has risen in comparison to Q1 2023, Flutter has recorded $3.4bn in revenue alongside $514m in adjusted EBITDA, marking a 46% YoY increase in earnings.

Top and bottom-line growth was also driven by an 11% YoY spike in average monthly players from 12.4 million to 13.7 million during Q1.

Breaking the firm’s results down regionally, the US contributed to the lion’s share of group revenue as the FanDuel-led division returned revenue of $1.4bn, up 32% on the $1.1bn generated in Q1 2023.

Adjusted EBITDA in the US also shifted from a $53m loss in the corresponding period last year to a positive return of $26m, with actives up 15% YoY, helped by a record 2.6 million players for Super Bowl LVIII.

Bosses noted that FanDuel Sportsbook boasts an NGR market share of 52% and GGR market share of 46%, while the firm also posted a record igaming GGR share of 27% following the first three months of the year.

This was also aided by a successful launch in North Carolina in mid-March, with 5.3% of the state’s population signing up to FanDuel within the first 45 days of being live.

Sports betting revenue jumped 30% YoY to landed at $986m, despite a “significant swing” in sports results during March Madness having a negative impact in the final two weeks of the quarter. However, sports betting net revenue margin was up 40 basis points YoY to 7.3%.

On the igaming front, Flutter cited product enhancements as a key factor behind a 49% YoY revenue jump to $358m. Slots revenue soared 73% against the previous year, aided by a plethora of new content this quarter.

Amid a strong start to 2024 by FanDuel, Flutter CEO Peter Jackson laid bare the company’s targets and stressed the need for “disciplined investment.”

“We have had an excellent start to the year,” Jackson said. “In the US, FanDuel’s top-line momentum is translating into strong growth in US adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share and embedding future profits within our business through disciplined investment.”

Outside of the US, UK and Ireland revenue rose 17% to $861m, largely driven by significant increases within the igaming vertical, which recorded a 27% YoY rise in revenue to $406m.

Sports betting revenue in the UK and Ireland rose 9% YoY to $411m as bosses said expansion of structural margin on the back of increased use of bet builders paid dividends.

Average monthly players’ rose 2% despite a less congested sporting calendar in Q1 2024 in contrast to the same time period last year.

It was a different story Down Under, with Australia revenue decreasing 6% to $329m, while adjusted EBITDA landed at $83m, a 2% YoY decline.

A continued soft racing environment in the market continues to impact the business, despite actives remaining in line YoY.

Finally, the group’s International arm, which includes PokerStars, Junglee Games in India, Serbia’s MaxBet and Betfair International, saw revenue rise 5% to $797m with a 16% hike in EBITDA to $173m.

Revenue in India remained hindered by tax changes first introduced in Q4 2023, which in turn triggered a 25% YoY decrease. A strong performance in the Italian igaming market via Sisal helped offset the impact of unfavourable sports results. 

There were also revenue improvements in Georgia and Armenia (20%), Spain (13%) and Brazil (8%) as actives across the division leapt 20%.

First quarter results have not inspired any changes to previously communicated financial guidance, with US revenue and adjusted EBITDA still expected to grow by 36.3% and 206%, respectively, by the end of the year.

The same goes for Flutter’s ex-US operations, with revenue and adjusted EBITDA mid-points of $7.85bn and $1.73bn marking a YoY growth of 6.3% and 5.4%, respectively.

Looking ahead to the rest of the year on the international front, Jackson explained: “Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK, where the launch of Super Sub on Paddy Power has been our most successful product launch to date, and in Italy, where we have been taking online sports betting and igaming market share during Q1 and reached an all-time record in April.”

Jackson went on to issue an update on the company’s decision to move its primary listing from London to New York, a verdict that was backed by an overwhelming 98% of Flutter shareholders.

The CEO cited the importance of the US market as he added: “We believe a US primary listing is the natural home for the group and we look forward to this becoming effective on 31 May. 

“With a greater proportion of the group’s future profits expected to be generated in the US, we have moved our operational headquarters to New York, reflecting the importance of the US sports betting and igaming market to our business.”

At the time of writing, Flutter’s currently London-listed shares were down just over 2% at £158.45.