Flutter hails FanDuel growth as Q3 US revenue jumps to $700m
Parent company’s revenue buoyed by 82% revenue surge for US sportsbook leader as average NFL player numbers top one million
Flutter Entertainment has lauded the dominance of its US sports betting subsidiary FanDuel after the market leader delivered 82% year on year (YoY) revenue growth during Q3 2022.
Delivering its latest trading update, the London-listed operator reported $700m in revenue from the US division during the period.
This was buoyed by a 36% uptick in gaming revenue and an 106% jump in sports betting revenue, arising from strong customer acquisition during the start of the NFL season in September.
In respect of igaming, Flutter reported a 40% increase in average monthly players, as well as greater progression and content launches in the FanDuel online casino app.
FanDuel maintained its position at the summit of the US sportsbook rankings with a 42% share of the market during Q3. Its share of igaming amounting to 19% during the period.
Sportsbook revenue grew by 150% and was driven by a combination of what Flutter termed as “strong customer acquisition” across its existing states in the run up to NFL season and the addition of six new jurisdictions since the firm reported in Q3 2021.
“Customer economics remained compelling, despite the anticipated step up in competition at the start of the NFL season. We continued to apply a disciplined approach to investment with expected payback periods in September remaining within 18 months.” Flutter said in a statement.
Sportsbook handle grew 82% YoY to $5.3bn, with the firm reporting a record net revenue margin of 8.5%.
Flutter attributed this rise to “structural improvements” made to its more popular sportsbook products (inclusive of Single Game Parlays) and bookmaker-friendly results, the combination of which allowed for reinvestment in promotions back to players.
Flutter Entertainment CEO Peter Jackson hailed the quarter as a strong period for Flutter, fueled by good growth in the US market.
“Our US division is now our largest and generated $700m in revenue, up 82%,” Jackson said.
“We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over one million players on a regular NFL Sunday.
“In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season.
“The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023,” he added.
In light of Q3’s results, Flutter has upgraded its revenue guidance in both the US and at a wider group level to reflect current consumer trends, with the firm indicating “no discernable signs” of a slowdown in the market.
US revenue guidance has been changed to revenue of between $2.95bn and $3.2bn (£2.45bn and £2.65bn), up from $2.85bn and $3.1bn in previous reporting periods.
However, Flutter’s adjusted EBITDA loss in the US is still expected to be between $300m and $360m, despite the potential earlier launch of sports betting in the US state of Maryland.
At a group level, excluding the US, Flutter’s adjusted EBITDA is expected to remain within previously guided figures of between £1.29bn and £1.39bn.
Flutter’s stock price fell by 1.57% in early trading (9 November) on the London Stock Exchange to a price of 1,160p.