Flutter revenue and profit soars in “pivotal” H1 as US hits positive EBITDA
Multi-brand giant reports 38% spike in revenue and 72% EBITDA surge over first six months of 2023
Flutter Entertainment has announced a 38% year-on-year (YoY) increase in constant currency (CC) in global group revenue for the first half of 2023 to £4.8bn.
Flutter revealed group sports betting revenue of £3bn in H1, up 39% YoY (CC) from H1 2022 and a 37% YoY increase in gaming revenue, which hit £1.8bn over the same period.
There was also a 28% YoY increase in its average monthly players (AMPs), which swelled to 12.2 million.
At a divisional level, Flutter’s US and International divisions were the big winners during H1, both reporting strong double-digit percentage rises in revenue on a CC basis.
US revenue rose 63% YoY to £1.8bn, driven by a 70% increase in sports revenue and a 44% YoY rise in igaming revenue.
Flutter US also reported a 43% increase in player numbers during H1 to 3.1 million.
FanDuel, the US market leader, achieved $100m in positive EBITDA in H1, attaining Flutter’s goal of reaching profitability six months ahead of internal estimates.
The brand secured a 47% share of the US market in Q2 for sports betting and a 23% market share in igaming over the same period, according to the FTSE 100 giant.
Flutter’s International division generated CC revenue growth of 74% YoY, hitting £1.2bn, most notably driven by a 183% increase in sports revenue which grew to £315m.
Meanwhile, Flutter International igaming revenue also increased sharply during H1, rising 52% to £854m, with the division reporting 47% growth in average monthly players to four million.
These figures were hugely bolstered by the acquisition of Italian giant Sisal. On a pro forma basis, International revenue and EBITDA both rose 8% on a CC basis.
The operator has suggested the international division is at a growth inflection point with so-called ‘consolidate and invest’ markets now driving 77% of total divisional revenue and growing at a rate of 19% YoY.
UK and Ireland (UK&I) total revenue spiked 13% YoY in H1 to £1.2bn, enhanced by a 15% increase in igaming revenue and 12% YoY growth in sports revenue to £709m.
Flutter attributed the performance of the UK&I business to product enhancements and “efficient generosity” driving market share gains across sports, igaming and recreational customer growth.
Flutter UK&I online AMPs grew 10% YoY to a little over four million players.
UK&I online revenue increased 14% YoY to £1.1bn, with an 11% uptick in sports revenue, which increased to £602m, coupled with igaming revenue of £487m.
Finally, the Australia division was the only geography to report a revenue dip during H1, with total revenue falling 1%, along with a 27% drop in EBITDA. Revenue and EBITDA numbers were impacted by significantly higher Covid-19 comparatives from H1 2022.
Flutter CEO Peter Jackson described H1 2023 as a “pivotal moment” for the business, underlined by the profitability reached by the US business during the period.
“With our divisions and their brands benefitting from the competitive advantages provided by the ‘Flutter Edge’, group performance in the period was very strong, with delivery of our strategic objectives resulting in pro forma EBITDA growth of 37%,” Jackson explained.
“The US delivered another exceptional performance. We acquired over two million new players in the period, cemented our leadership position in sports and grew our share in igaming to 23%. The US business was profitable in the first half with FanDuel generating over $100m in EBITDA.
“This profit profile provides us with a clear platform to invest materially in the second half, as we strive to continuously improve our customer offering. Our player acquisition strategy has consistently delivered, generating excellent returns on investment, embedding even greater value into our customer base and increasing our future profitability.”
Looking outside the US, Jackson added: “In the UK, we took market share due to ongoing product enhancements, while in International, Sisal continues its strong trajectory since its acquisition in August 2022. This combined momentum helped offset the reduction in Australian profitability, due to more challenging Covid-related comparatives and a changing tax environment.
“The second half of the year has started well and we look forward to adding a US listing for Flutter shares later this year or early next year.”
Despite the positive results, Flutter shares fell 5.2% in early trading to £141.