Flutter Entertainment has released its H1 2023 report revealing group revenue of £4.8 billion (€5.5 billion), an increase of 38% compared to H1 2022 when the company generated £3.4 billion (€3.94 billion).
In its 2023 interim results, Flutter said that its US business reached a profitability inflection point as its FanDuel brand generated $100 million (£79 million / €91.1 million) in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
Group sports betting revenue improved by 39% across the board to £3 billion (€3.48 billion) while gaming grew by 37% to £1.8 billion (€2.08 billion).
The company also reported that average monthly players grew by 28% year-on-year to over 12 billion.
Flutter’s UK & Ireland revenue rose by 13% year-on-year to £1.2 billion (€1.39 billion) following “product enhancements and efficient generosity underpinning recreational customer growth and driving market share gains in both sports and gaming”.
Meanwhile sports betting revenue in the UK & Ireland grew by 12% to £709 million (€822.7 million) while gaming revenue grew by 15% to £533 million (€618.4 million).
The group also reported that revenue in Australia fell by 1% year-on-year to £601 million (€697.3 million) as a result of “covid spend reversion and point of consumption tax changes”.
Speaking in a presentation call to investors, Flutter CEO Peter Jackson said:
“The first half of 2023 marks a pivotal moment for the Group, with our US business now at a profitability inflection point, helping transform the earnings profile of the Group and significantly enhance our financial flexibility.
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%. Our recreational player base increased to over 12 million monthly players, and importantly, more players than ever interacting with our safer gambling tools, aided by a £45m investment in our Play Well strategy in H1.”
Of the group’s success with FanDuel as well as plans for a US listing Jackson noted:
“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.
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.”
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