Flutter US revenues up 55% as FanDuel makes up half of NJ market
Firm to take a $67m EBITDA hit following investments in customer acquisition soon after Pennsylvania launch
Flutter Entertainment’s US pro forma revenues climbed 55% to $194m in H1, with FanDuel now accounting for half the New Jersey betting market.
However, EBITDA for the period slumped 75% year-on-year to $4m as CEO Peter Jackson warned the firm would be taking a FY19 $67m loss following investments in customer acquisition.
Breaking down its revenue streams, Jackson said sports was up 40% on the previous year to $170m, while gaming climbed 103% to $24m.
“We are delighted with our US performance and have been encouraged by the regulatory momentum that has seen 10 states regulate online sports betting since the repeal of PASPA,” Jackson said.
“Cross-sell is an important contributor to our success, with around half our customers in New Jersey coming from our existing daily fantasy business, while strong cross-sales have delivered 15% market share in online casino.
In Pennsylvania the operator is seeing stakes at around 20% of New Jersey levels just weeks after launch.
“We have recently gone live in Pennsylvania, where we are one of the first operators to launch online, and we hope to replicate our success there too,” Jackson said.
Group marketing spend will drop $12m in H2, although CFO Jonathan Hill said US marketing spend is unknown as it’s a new business area.
According to estimates by marketing consultancy R3, FanDuel spends approximately $50m annually on marketing in the States.
Overall group revenues for Flutter’s digital business were up 8% YoY to $604m.
Follow EGR Intel’s live blog on Flutter’s financial results this morning here.