Flutter Entertainment has reported a 41.9% surge in group revenue for the first half of 2023, marking a substantial leap from the same period in the previous year. During the six months ending on June 30, the Irish sports betting giant achieved a new revenue milestone, raking in £4.81 billion ($6.1 billion).
This comes in tandem with a strategic shift that has propelled the company’s US operations to a “profitability inflection point,” according to CEO Peter Jackson, who described this period as “pivotal” in the company’s trajectory.
Central to Flutter’s H1 performance was its North American operations, anchored by the FanDuel brand. Since its acquisition by Flutter in 2018, FanDuel has evolved from its origins as a daily fantasy sports platform to emerge as a market leader in the US sports betting and online casino landscape, with a presence across multiple states.
Another key highlight of Flutter’s H1 2023 performance is the transition from a net loss to a profitable position, a transformation largely fueled by the performance of its US segment. Flutter’s profit after tax came in at £128 million ($163.3 million), an increase on the loss of £112 million ($142.9 million) the previous year.
Jackson celebrated the accomplishments of the company’s US business, stating: “The first half marks a pivotal moment for the group. Our US business is now at a profitability inflection point, helping transform the earnings profile of the group and significantly enhance our financial flexibility.”
Flutter CEO Peter Jackson
The success of Flutter’s US operations translated into £1.79 billion ($2.45 billion) in revenue, representing a 71% increase compared to the previous year. Significantly, FanDuel accounted for 98% of the total revenue generated in the US. Moreover, the brand’s adjusted EBITDA flipped from a £132 million ($168.5 million) loss to a gain of £49 million ($62.5 million).
FanDuel has managed to consistently attract new players, with more than two million users joining during the first half of 2023. The operator generated over $100 million (£79 million) in EBITDA during the same period.
Meanwhile, the UK and Ireland segment witnessed revenue growth of 13.7%, amounting to £1.24 billion ($1.7 billion), buoyed by the performance of flagship brands such as Betfair and Paddy Power. Flutter’s International segment also reported a surge, with total revenue soaring by 84.7% to £1.17 billion ($1.6 billion).
Amidst these triumphs, Flutter faced certain challenges in its Australian business segment, particularly with its Sportsbet brand. The brand experienced a marginal decline of 1.8% in revenue, attributed to “challenging” comparatives from the preceding year. Despite this, Flutter managed to retain an expanded customer base.
Jackson said: “With our divisions and their brands benefitting from the competitive advantages provided by the Flutter Edge, group performance in the period was very strong, with delivery of our strategic objectives resulting in pro forma EBITDA growth of 37 percent.”
“Our recreational player base increased to over 12 million monthly players, and importantly, more players than ever interacting with our safer gambling tools, aided by a £45m investment in our Play Well strategy in H1.”