Flutter CEO says US-focused M&A to be used “tactically if needs be”
Peter Jackson insists acquisition focus remains on non-US business to gain podium positions as he champions existing FanDuel playbook
Flutter Entertainment CEO Peter Jackson has distanced the company from executing US-focused M&A to further strengthen FanDuel’s hand in the market.
Speaking to analysts following the release of the company’s full-year 2023 earnings report, Jackson was pressed multiple times on Flutter’s M&A pipeline.
While not being drawn on specifics, Jackson did note that acquisitions, if any, would more than likely come in the group’s non-US operations.
Flutter did sanction the undisclosed acquisition of supplier BeyondPlay earlier this year in a move it hopes to further improve its igaming proposition.
The Karolina Pelc-founded brand specializes in customizable jackpots and multiplayer capabilities to allow consumers to play the same online casino title at the same time.
However, Jackson added that Flutter’s growth in the US would be powered on the back of its existing playbook, rather than pushing for inorganic growth.
The CEO noted that M&A in the US would be used “tactically if needs be” before doubling down on the power of acquisitions to develop the firm’s international business.
Jackson said: “The business that we bought in Serbia earlier this year, I think is a good example of where we use our ability to deploy our products, capabilities, and capital into a market and give ourselves a gold medal position.
“There’s lots of white space opportunities when you look outside the US market. To acquire those gold medals positions in the ex-US businesses is important.
“We also have to agree to buy [BeyondPlay] in the US market to support our leadership position in igaming as well. So, we will use it tactically if needs be, but I think it’s probably going to be more focused on the ex-US business,” he added.
On continuing to make strides in the US, where revenue rose 40.7% in 2023 compared to 2022 up to $4.5bn, Jackson said the competitive market would not stop the business from continuing to net customers.
In fact, last year, FanDuel secured 3.7 million new users representing a 19% increase on 2022.
Jackson continued: “We’re very pleased with the volumes of customers we’re acquiring and we’ll continue to acquire as much business as we possibly can do on that basis.
“Clearly, we’re operating in an environment where people are working hard to try and take their fair share of customers. We know that was certainly the case in Q4 around the launch of the football season back in September.
“We were very pleased with the performance in Q4. We’re pleased with the trading results you see up to March 17. And we’ll continue to push on,” he concluded.