Flutter Entertainment revenue leaps 33% in Q1 as US and Australia divisions soar
FTSE 100 operator hails US growth of 135% led by FanDuel as Aussie retail punters stick to Sportsbet’s online offering
Flutter Entertainment has reported a 33% year-on-year increase in total group revenue to £1.4bn for Q1 2021.
Almost 100% of quarterly revenue was generated from online operations, where revenue increased by 41%. Retail earned just £13m globally with most outlets closed due to Covid-19 for the bulk of the period.
The FTSE 100 operator also recorded a 41% rise in constant currency revenue from sports betting, while gaming revenue climbed by 22%.
At a divisional level, the firm’s US arm proved to be the strongest performer during the quarter, where revenue surged 135% annually to £288m.
Flutter’s Australia operations, which encompasses the Sportsbet business, was the next most successful, enjoying a 56% revenue uptick to £279m.
The Dublin-headquartered operator attributed this rise to the migration of retail customers online following the closure of Australian retail betting shops during the pandemic.
Flutter’s combined UK & Ireland business reported a total revenue increase of 16% to £568m, fuelled by 35% growth in the online division, where revenue reached £568m.
This was buoyed by a 35% jump in Sky Betting & Gaming (SBG) revenue, while Paddy Power Betfair online revenue rose by 36%. Flutter estimated that its brands accounted for 56% of overall customer bets during Cheltenham Festival in March.
Flutter’s UK & Ireland retail business generated zero revenue during Q1 due to extended lockdown closures.
The international business, which covers Betfair, PokerStars’ non-US operations and Georgia-facing Adjarabet, experienced Q1 revenue growth of 7% to £351m. Poker revenue in the division declined by 8%, proving that last year’s comeback was short-lived, although online casino grew 22%.
Exchange betting revenue increased 18% during Q1, amid a 24% rise in revenue generated from sportsbook operations in the division.
Flutter Entertainment CEO Peter Jackson said: “We continued to significantly grow our global player base, which in turn drove a 42% increase in our online revenue.
“In Australia, we have been highly focused on retaining retail customers that migrated to our platform during 2020, and while it is still early days, we have been pleased with the retention rates to date.
“In our international division, the investment we are making to enhance player generosity and reinvigorate the PokerStars brand has seen an encouraging early response from customers.
“In the US, we continue to lead the market with revenue of almost $400m in the quarter.
“As restrictions begin to ease and retail reopens across a number of markets, we remain confident that our diversified business leaves us well placed to deliver sustainable growth going forward,” Jackson added.
Flutter confirmed it was “giving consideration” to an IPO of a small part of its FanDuel business in the US but said it had made no decision on whether to proceed.
Flutter’s share price was unmoved at £158 in early trading on the London Stock Exchange