Flutter lauds US and Sisal contribution as revenue jumps 22% in Q3 2022
American division reports 82% growth as player numbers during NFL hit one million
Flutter Entertainment has reported a 22% year-on-year (YoY) rise in its Q3 2022 group revenue to £1.8bn on a constant currency (CC) basis.
Delivering its latest trading update for the quarter, the London-listed operator confirmed a CC rise in its gaming revenue of 30% YoY to £748m in Q2, up from a prior 2021 high of £534m.
Sports revenue also grew by double-digits on a CC basis, rising 17% to £1.1bn over the same Q3 period.
Flutter’s average monthly player numbers jumped by 23% YoY in Q3 2022 to just over nine million players.
At a divisional level, Flutter’s US arm continued its stellar growth, delivering 82% YoY revenue growth during Q3 to £598m. This was buoyed by a 36% uptick in gaming revenue and 106% in sports revenue, arising from strong customer acquisition during the start of the NFL season.
Flutter’s international division also enjoyed a strong Q3 period with revenue rising 43% YoY to £466m, an increase which the operator attributed to growth in India through the Junglee brand, as well as the impact of the Sisal acquisition on its European operations.
UK and Ireland operations, encompassing the firm’s online and retail shops, saw revenue grow by just 3% during Q3 2022 to £509m.
A key element of this was a 25% YoY growth in igaming revenue, offset by a 10% decline in sports betting revenue, attributed by the firm to the absence of the Euro 2020 from this year’s figures as well as a slower midsummer start surrounding the period of national mourning in the UK following Queen Elizabeth II’s passing.
Drilling down into these figures, UK & Ireland online revenue grew 4% YoY to £443m, while retail revenue slumped 3% to £66m, a drop which Flutter suggested was in part due to the hot summer period and changed working patterns among bettors.
The biggest loser in the Q3 period was Flutter’s Australia division, which comprises the Sportsbet business, where revenue dropped 21% YoY to £319m. This decline reflected lower levels of customer engagement compared to 2021, when 60% of Australia was in Covid-19 lockdowns.
Flutter Entertainment’s CEO Peter Jackson hailed the quarter as a strong period for Flutter, citing good growth in the US, as well as in the group’s so-called ‘consolidate and invest’ markets internationally.
“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,” Jackson said.
“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.”
Jackson continued: “Outside of the US, we welcomed Sisal, Italy’s leading gaming operator, to our international division during the quarter and look forward to working with the team to grow the business in Italy and in other international markets.
“As we look ahead, our product and geographic diversification, as well as our recreational customer base, position us well for future growth,” he added.
In the 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 – £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.