Flutter Entertainment Reports $11.79 Billion in Revenue in 2023

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FanDuel’s parent company, Flutter Entertainment, has released its financial results for the fiscal year that ends on December 31, 2023, and the company reported an uptick in revenue of $11.79 billion, up 24.6% over the year preceding it.

For the first time ever, the company’s further adjusted EBITDA for a full year has been positive, ascending from -8.2% in 2022 to 3.7% in 2023. However, it reported a $1.2 billion net loss, mostly due to non-cash costs, including the $725 million posted down as the impairment of PokerStars’ brand and the amortization of intangible assets purchased.

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Flutter US Operations Take Precedence Over Other Regions

Once more, Flutter stood out for its outstanding performance in the US market, helped by FanDuel’s dominance. Examining the entirety of its US operations, the market share of net gaming revenue rose to 53.4% from 43.2% in 2022.

FanDuel yielded an impressive 40.7% increase in revenue, reaching $11.8 million. And with a total of $167 million, this was FanDuel’s first year with positive further adjusted EBITDA.

Additionally, the sportsbook saw a 19.0% increase in the acquisition of new betting and iGaming players in 2023, totaling over 3.7 million, with Average Monthly Player (AMP) reaching an increase of 20.3% which resulted in 12.3 million.

“FanDuel delivered its first full year of positive further adjusted EBITDA and has consolidated its leadership position in sports across the key months of NFL and NBA activity, capturing a 53% share of net gaming revenue in Q4. This has been achieved by ensuring we have the best product on the market. We are investing to maintain this leadership position,” Flutter Chief Executive Officer Peter Jackson said.

According to Jackson, FanDuel’s increased profit margin during the NFL season was a result of the launch of two new products: Parlay Hub and The Pulse.

“This product superiority, combined with our pricing accuracy, means our structural hold margin has also progressed well ahead of expectations, reaching 13.5% in Q4. The strength of our product gives us the confidence to continue investing behind the excellent returns received from our customer acquisition investment.”

In 2023, FanDuel expanded its operations to the populated states of Ohio and Massachusetts, witnessing a profound growth in market share with a seven-point increase since July 2022, propelling its iGaming brand to become the top contender in the market by Jan. 2024.

Flutter International Markets

Beyond the borders of the United States, the company maintained a revenue increase of 16.4% to $7.3 billion, while the United Kingdom and Ireland witnessed a revenue surge of 14.4% to $3 billion.

Australia was the only region to experience a decline in 2023. As reported by Flutter, revenue decreased by 7.1% to $1.45 billion.

Meanwhile, on the global front, operations spanning Betfair, Sisal, Junglee, and the recent acquisition of the Serbian betting operator MaxBet drove a staggering 36.8% annual increase in segment revenue, accompanied by a 31% uptick in player count primarily attributed to the inclusion of MaxBet.

“Outside of the U.S., strong AMP and revenue growth in UKI and International, including the addition of Sisal, more than offset the previously muted trends in the Australian racing market. The UKI business had an excellent year. The combination of compelling new products and improved promotional efficiency has delivered an additional two percentage points of market share in 2023,” Jackson noted.

Furthermore, Flutter allocated $100 million towards safer gambling initiatives, reflecting a 25% year-on-year augmentation.

Flutter Future Prospects

With revenue from January 1 to March 17, 2024, indicating a 23% rise compared to the same time in 2023, guidance for 2024 has started off nicely, with high figures partly attributed to the Super Bowl.

“In the U.S., we expect revenue of between $5.8 billion and $6.2 billion, which is a midpoint, equated to year-on-year growth of 36%. We expect U.S. further adjusted EBITDA to increase by nearly $0.5 billion of $710 million, again at the midpoint, and we expect U.S. cost of sales to be approximately 56.5% on a U.S. GAAP basis. We expect 30% of EBITDA to be generated in H1, with Q2 higher than Q1 due to the timing of state launches noted above,” Chief Financial Officer Paul Edgecliffe-Johnson added.

On January 29, the company began listing on the New York Stock Exchange. It plans to move to its primary listing in the United States by May 31, contingent upon a vote by shareholders on May 1.


About the Author
Tebearau Egbe

Tebearau Egbe

Tebearau Egbe is a seasoned gambling writer with over four years of experience. Armed with a Masters degree in philosophy, Egbe possesses a unique ability to dissect complex industry developments, distilling them into insightful narratives that captivate readers.

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