Flutter FY23; US operations generate $4.48bn in revenue, iGaming up to #1

March 26, 2024
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FanDuel performance led US operations to 40.7% revenue growth, with FanDuel now taking the number one spot in iGaming.

Flutter has released its full-year results for 2023. The operator saw overall revenue growth of 24.6%, from FY22’s $9.46bn to FY23’s $11.79bn. Overall net loss grew 227.3%, however, from FY22’s -$370m to FY23’s -$1.21bn. This was attributed to several non-cash charges, such as a $725m PokerStars trademark impairment. 

Stock prices are up roughly 1.7% at the time of writing from start of day trade (March 26), beginning at £17.18 ($21.74) and peaking as high at £17.97 at 8.20am GMT.  

Of this $4.48bn derived from US operations, with adjusted EBITDA growing from a loss of $347m last year to a profit of $65m this year. On the results, CEO Peter Jackson commented, "As anticipated, our number one position in the US has transformed the Group’s earnings profile during 2023 as FanDuel delivered a positive US full-year adjusted EBITDA for the first time."

US operations 

The sector's $4.48bn annual revenue reflects growth of 40.6% from last year, putting this growth above that of other sectors including UK&I (up 13.7%), International (up 34.2%) and Australia (down 2.8%).  

With iGaming revenue up 47.2% and sportsbook revenue up 45.9%, these operations gained an additional 3.7 million players between them over the year for growth of 19%.

Flutter has given guidance that FY24 revenue is expected to land between $5.8bn and $6.2bn for US operations. 

FanDuel sportsbook 

The report stated that as of Q4 2023, FanDuel held a net gaming revenue (NGR) market share of 53.4%, with a GGR share of 43.2%. This is a fall from previous quarters, such as Q1 when the company reported over 50% GGR market share.  

The growth of the sportsbook was attributed to the three additional sportsbook states to open in the US in 2023, which included Kentucky in September. It also noted the full-year contributions of states that opened sports betting in 2022, which included New York and Ohio.  

New product launches were also noted as a reason for FanDuel and thus US operational growth, including the Parlay Hub for same-game parlays, which was particularly popular during the Super Bowl.  

IGaming 

FanDuel’s iGaming product has come to join the FanDuel sportsbook as number one in FY23, with FanDuel claiming it has become the top iGaming brand based on gross gaming revenue as of January 2024. In Q4 2023, operations held a 25.7% market share. 

Adjusted EBITDA for the segment grew by $412m.

Growth in this sector was attributed to an 82% increase in titles from the year prior, as well as access to exclusive games and a wider range of iGaming partnerships. These included Playtech, Aristocrat iGaming division Anaxi and Digital Gaming Corporation among others. 

Q1 2024 

As well as annual revenue, Flutter also provided some statistics on the company’s growth in the first quarter of 2024. The overall group sportsbook net revenue margin was 9.7%, at 8.5% for US operations.

From Q1 2023, sportsbook revenue was up 63.7% while iGaming revenue was up 50.3%, with a decrease in revenue from other sources by 6.5%. 

Overall, this reflects year-over-year growth for US operations by 55.6%.

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