Flutter defends US sports betting lead as Q3 revenue soars 85%
FanDuel operator claims 42% market share in US sports betting and 16% in igaming as NFL push pays dividends
Flutter Entertainment has reported an 85% year on year increase in Q3 revenue generated from the US market, reaching $382.1m on a constant currency basis.
Delivering a trading update for the quarter, the London-listed operator revealed a 94% contribution to US revenue growth from US market leader FanDuel, which successfully fought off intense competition from rivals to retain top spot in the US after the start of the NFL season.
Flutter estimated that it has a 42% share of the US sports betting market, with igaming operations generating a market share of 16%.
At an individual level, Flutter’s US average monthly player numbers grew by 17% during Q3 to 1.3 million, rising to 1.9 million players during the start of the NFL season in September.
FanDuel sportsbook revenue rocketed 97% year on year to $254m, including sportsbook growth of 422% and an 80% rise in sportsbook stakes during the quarter.
“These high volumes have been handled comfortably on the group’s global betting platform following FanDuel’s full migration onto that platform,” Flutter explained.
“Sportsbook net revenue margin increased by 410 basis points year on year to 6.2%, reflecting the significant investment we made during Q3 2020 following the return of sports, favorable sports results in 2021, and our beneficial product mix.
“We continued our significant investment in customer acquisition and retention during the quarter, including leveraging our official sports betting partnership with the NFL,” Flutter added.
Revenue from the group’s DFS segment of the US business and TVG business dropped by 22% year on year due to “tough calendar comparatives” when compared to 2020.
Comparisons cited include a total of 166 NBA games in 2020 versus just nine in 2021 and in respect of TVG a rescheduled Kentucky Derby in September 2020 versus May 2021 this year.
Gaming revenue increased 65% to $132m, with the firm’s igaming operations now live in five states following the launch of Connecticut in October.
The operator also revealed that its new gaming promotions platform, which targets multi-product players and improved UX, has gone live.
While Flutter’s US net revenue guidance has not altered from £1.29bn to £1.43bn ($1.75bn-$1.94bn), the firm’s adjusted EBITDA loss estimate has been increased to between £250m-£275m, reflective of a £15m EBITDA hit arising from adverse sporting results.
Flutter Entertainment CEO Peter Jackson hailed Q3 as a “strong” quarter, despite challenging comparatives arising from a concentration of key sporting events in 2020.
“In the US we maintained our leadership position, with the quality of our product offering leading to high levels of customer engagement,” he explained.
“As expected, the start of the NFL season saw a step-up in competitive intensity. We remained disciplined however, leveraging the broad set of high-quality marketing assets at our disposal.
“The customer response has been very encouraging with FanDuel now regularly experiencing staking levels on Sundays that match its 2021 Super Bowl performance.
“Early engagement on NBA since the recent start of season has also been strong,” Jackson concluded.
At a wider group level, Flutter reported a 12% year on year increase in its Q3 revenue which hit £1.4bn on a constant currency basis.
It revealed 17% year on year growth in revenue generated from sports, which hit £906m, and a more modest 5% growth in gaming, which rose to £534m in the same period.