Flutter Entertainment Reports Mixed First Quarter, FanDuel Driving Profits

Flutter Entertainment (Flutter Entertainment 25,43 0,00%) recently published its Q1 report for the year 2024, showing it suffered a net loss of $177 million compared to last year’s, which was $111 million. This boiled down to a 59% year-on-year decline.

Despite this disappointment, the company saw growth in revenue for the first three months of the year, garnering $3.4 billion, a significant figure from Q1 2023, which stood at $3 billion. This signified 16 percent year-on-year growth for the company.

Revenue was not the only growth experienced by Flutter, as its adjusted EBITDA climbed to $514 million, up from $352 million the previous year. Operating profit reached $124 million, a significant improvement from the previous year’s loss of $15 million.

“We have had an excellent start to the year. In the US, FanDuel’s top line momentum is translating into strong growth in US adjusted EBITDA and market share gains,” Peter Jackson, Flutter Entertainment Chief Executive Officer, commented.

Last week, the company also announced the appointment of Michael Foster as Sportsbet’s new Chief Information Officer.

Flutter Entertainment Highlights for the Q1 Report

• Flutter reported a net loss of $177 million, a 59% decline from the previous year’s $111 million net loss.
• Revenue increased to $3.4 billion, up 16% from $3 billion in Q1 2023.
• Adjusted EBITDA rose to $514 million from $352 million the previous year.
• FanDuel achieved a 52% market share in online net gaming revenue (NGR) and a 46% market share in gross gaming revenue (GGR).
• Sisal’s expansion in Italy contributed to international revenue growth.

FanDuel Fuels Flutter’s Growth

In the first quarter of 2024, FanDuel achieved a market share of 52% in online NGR and a market share of 46% in GGR. This shows that FanDuel is cementing itself as the dominant player in the sports industry. In the first quarter of this year, they obtained a record-breaking 27% share of the GGR market. This is a four-percentage point gain compared to the previous year.

A successful NFL season was capped off with FanDuel’s total average monthly players (AMP) hitting a record 2.6 million players during Super Bowl LVIII.

FanDuel has also released a number of new features throughout this quarter with an increase in the number of betting markets that players may choose from in preparation for the next Major League Baseball (MLB) season.

“We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment. Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK, where the launch of Super Sub on Paddy Power has been our most successful product launch to date, and in Italy, where we have been taking online sports betting and iGaming market share during Q1 and reached an all-time record in April,” Jackson continued.

Flutter’s international businesses saw an increase in revenue, mostly as a result of Sisal’s expansion in Italy. Revenue increased year-over-year in the UK and Ireland, influenced by AMPs increasing by 17%, contributing to a 17% rise in revenue to $861 million.

Despite more decreases in Australia, Flutter’s overall revenue outlook in Q1 remained positive, as Jackson commended the team’s work.

Flutter’s 2024 Full Year Outlook

Flutter maintains optimism over its financial year outlook as of the end of March, even in the face of a sizable net loss.

The company predicts that its US revenue will reach a midpoint of $6 billion, representing a 36.3% year-over-year rise. The projected adjusted EBITDA midpoint is $710 million, a significant increase of 206.1% over 2023.

Outside of the US, adjusted EBITDA is predicted to expand by 5.4% to a midpoint of $1.73 billion, while total sales are anticipated to reach a midpoint of $7.85 billion, indicating a 6.3% increase.

Meanwhile, in other company-related news, the transfer of Flutter’s primary listing to the New York Stock Exchange (NYSE) was agreed upon by the company’s shareholders earlier this month, and it is scheduled to go live on May 31, 2024.

“On May 1, shareholders voted to move our primary listing to the US. We believe a US primary listing is the natural home for the group, and we look forward to this becoming effective on May 31. With a greater proportion of the Group’s future profits expected to be generated in the US, we have moved our operational headquarters to New York, reflecting the importance of the US sports betting and iGaming markets to our business,” Jackson said.

Flutter also prides itself on infusing safety measures to ensure player safety and responsible gaming.

“We are proud to be one of the founding members of the US Responsible Online Gaming Association, whose goal is to develop and advance responsible gaming practices. We are a strong advocate for building a sustainable sector in the US. We believe that our global experience positions us well to help lead the way,” Jackson concluded.