Flutter Entertainment reports 18% online revenue rise for 2019
Online grows as pre-tax profits fall by 38% on regulatory changes and US market investment
London-listed operator Flutter Entertainment has revealed an 18% year-on-year increase in online revenue for 2019 as overall revenue reached £2.14bn.
Revenue from the firm’s sports betting business rose 13% year-on-year to £1.66bn during 2019, as gaming revenue remained flat at £473m.
Paddy Power Betfair online revenue increased by 6% to £1bn during 2019, up from the £948m reported during 2018, with growth impacted by “enhanced responsible gambling initiatives”.
Flutter said it expects to see annualised reductions in revenue from the forthcoming UK credit card ban of between £20-25m.
The 18% overall online growth rate partially offset annual costs of £107m due to an increase in Remote Gaming Duty and regulatory changes.
US revenues from the group’s sportsbook and gaming business increased to £376m during 2019, marking an annual jump of 60% on the £191m reported during 2018.
However, overall profit before tax declined by 38% to 136m from 219m in 2018, on the back of regulatory changes and the operator’s investment in the US market.
In isolation, US sportsbook revenues rose 51% during 2019 to £325m, while gaming revenues rose 160% to £51m.
Flutter attributed the rise in US revenues to the integration of FanDuel and the regulation of sports betting in the US, something which it said had “transformed” its US division.
“2019 saw us expand our online sportsbook offering into 3 new states,” said Flutter CEO Peter Jackson. “The DFS database provided 42% of our sportsbook customers, while cross sell to casino drove a 149% increase in gaming revenue.”
The group confirmed that it would look to expand its operations into three more US states during 2020.
Peter Jackson hailed 2019 as a “very significant” year for the business, following its expansion into the US with FanDuel and the firm’s forthcoming merger with The Stars Group.
Jackson said he was “immensely proud” of the group’s performance, particularly given the complex regulatory environment.
“We remain as confident as ever in the size of the prize in the US and in our strategic approach which positions us well for the future,” he said. “The new financial year is off to a strong start with good momentum across all our brands.
“We are very excited about the group’s prospects and in particular our proposed combination with The Stars Group, which will help us to build a more diversified global business,” Jackson added.