Flutter US revenue surges 92% in Q1 as FanDuel delivers 116% sports revenue increase
London-listed operator hails US market leader as sports betting handle hits $10.9bn
Flutter Entertainment has reported a 92% constant currency (cc) year-on-year (YOY) increase in its US divisional revenue for the first quarter of 2023 to £908m ($1.1bn).
Delivering a groupwide trading update for Q1, the Dublin-based company confirmed a 116% increase in sports revenue and a 43% spike in revenue from gaming arising from the US division during the quarter.
Average monthly player numbers in the US were up 46% to 3.4 million, while state launches in Ohio and Massachusetts drove a 20% rise in new players.
The strong financial performance of Flutter’s US arm, driven primarily by FanDuel, was reflected by its increase in market share.
FanDuel now holds 50% sportsbook market share, representing a 14-percentage point increase on Q1 2022, while igaming market share jumped to 23% off the back of a 200-basis point improvement.
Flutter pointed to the increased uptake of its same game parlay products, or bet builders, as a driver for both revenue and customer retention after expanding the offering for NCAA’s March Madness and in-play NBA betting.
“Sportsbook stakes increased 43% while sportsbook net revenue margin increased 290 basis points year on year to 7.0%, benefitting from 80-basis points of favorable sports results in the quarter and unfavorable results in the prior comparable period,” Flutter said in its trading update.
“The expected sportsbook net revenue margin increase was partially offset by increased generosity levels from the launch in new states,” the firm concluded.
Flutter expects the US division to become a profitable enterprise by the second half of 2023, ahead of the group listing on the Nasdaq Stock Exchange during Q4 2023.
At a wider group level, Flutter’s revenue grew by 46% cc YOY to £2.4bn during the quarter, with sports revenue up 53% to £1.4bn and gaming revenue increasing 35% to £916m in Q1 2023.
Flutter’s US division led the way in respect of revenue growth during the quarter, just ahead of its international division, which saw a 69% YOY increase, and UK and Ireland revenue which grew 17% to £608m. Only the Australia division saw a revenue drop during the quarter, falling 4% to £289m.
Flutter Entertainment CEO Peter Jackson flagged Q1 as a “very strong” period for the London-listed operator, citing its continued execution of strategic priorities as key drivers behind this growth.
“In the US, the combination of the FanDuel Advantage and the Flutter Edge drove further market share gains,” Jackson explained.
“We added over 1.5 million customers in the quarter and we remain the clear market leader. Our US sports betting handle of $10.9bn represented almost 60% of the group’s total sportsbook stakes.
“We were also very pleased to receive overwhelming support among our shareholders for the addition of a Flutter US listing. The strategic and capital markets benefits this will bring to Flutter will position the group well for its next phase of growth,” the CEO concluded.