Flutter Entertainment has released its 2021 financial report revealing a 37% year-on-year rise in revenue to £6.04 billion (€7.25/$8.02 billion).
The company, owner of major brands such as Paddy Power, FanDuel, PokerStars, and Sportsbet, also reported that its recreational player base increased by 23% in line with corporate strategy and predictions.
According to the report, Group EBITDA fell by 6% during 2021 to £723 million (€868.2/$960.6 million) while the company’s share price on the FTSE 100 dropped by more than 12% to £94 (€112.88/$125) at the time of writing.
Sports betting operations accounted for more than half of the company’s 2021 revenue at £3.77 billion (€4.52/$5 billion) while gaming revenue amounted to £2.26 billion (€2.71/$3 billion) for the year.
Flutter’s revenue growth was attributed to the 2020 acquisition of The Stars Group while the drop in EBITDA was a direct result of increased investment in the US as the FanDuel brand continues to launch in regulated sports betting markets across the country.
The report also noted that Russia accounted for £41 million (€49.2/$54.4 million) in revenue while gambling operations in Ukraine contributed £19 million (€22.8/$25.2 million).
Speaking of the yearly results, Flutter CEO Peter Jackson said:
“2021 was another strong year for the group as we made good progress against our strategic objectives and grew our recreational customer base to more than 7.6 million customers.
In the US, we delivered over $1.9bn in revenue, leveraging our differentiated product proposition to remain the number one sportsbook in the market with a 40% share. Despite our scale, we retain a challenger mindset; this year we launched a number of new features to our market-leading same-game parlay product, maintaining our competitive advantage in sports.
I’m also pleased to see the progress on our path towards profitability; FanDuel sportsbook and gaming business delivered positive contribution in 2021 for the first time, a significant milestone for the brand. ”
FanDuel became the first large scale online brand to generate positive revenue from sports betting and gaming in the US with an overall contribution of £9 million (€10.8/$11.9 million). Flutter revealed that the brand is on target to be EBITDA positive by 2023.
In the UK & Ireland, Flutter claimed a market share of 29% for 2021, representing online revenue growth of 3%. However, an unprecedented run of customer-friendly sports results in 2021 cost Flutter’s sports betting brands a combined £232 million (€278.5/$308.4 million) in revenue year-on-year.
Jackson noted that he was happy with the company’s growth during 2021 saying:
“Overall, I am pleased with the progress we have made during 2021 and believe Flutter is exceptionally well positioned for future growth.”
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.