Flutter Thrives on Robust Q1 Performance in the US, with CEO Jackson Discussing Prediction Markets
Blusterin' Bigwig Flutter Entertainment celebrated a string of successes in the US on Wednesday, reporting a £2.81 billion ($3.66bn USD) first-quarter group revenue, up 8% versus last year. Profit margins soared too, with Adjusted EBITDA and net income both jumping 20% and 289% respectively.
Flutter's stock might've dipped 1% to £190 ($242.36 USD) at market close, but the numbers don't lie. Averaging 14,880 monthly players and raking in $1.66 billion from the US, FanDuel – Flutter's shining US star – is paving the way for this gambling titan's continued domination.
CFO Rob Coldrake pointed out that net revenue, not just handle, is what truly matters. While handle growth was "in line with expectations," with sports betting taking a hit during March Madness, where the top seedspowered through to the final four, revenue continued to surge.
Flutter's overall revenue outside the US did tick up a teeny bit, but there was a 1% dip in adjusted EBITDA to £518 million ($616m USD). When calculated on a constant currency basis, though, this figure improves to +3% and +2%.
Peter Jackson, Flutter's CEO, was chuffed with the results, attributing the success to FanDuel's dominant positions in both online sports betting (43%) and iGaming (23%) throughout the quarter. In addition, the company's valuable "Flutter Edge" – delivering cost savings and other competitive advantages – is extending far beyond the UK.
Flutter recently snapped up Snai, an Italian casino and lottery firm, bolstering the group's presence in the Old World. The acquisition marked a new chapter for Flutter, taking a huge bite out of American Lottery operator IGT's European market share.
The international performance highlights one stellar acquisition in the books division that operates Sisal, which Flutter bought back in August 2022. This Italian powerhouse oversees SuperEnaLotto, Turkey's national lottery called Mili Piyango, and could net Flutter a "sizeable opportunity" in Italy's lucrative lottery market.
Meanwhile, Flutter's been assessing the potential of prediction markets, potentially concocting a move to hop on board this fledgling trend. The decision seems in line with the firm's prediction market subsidiary, Betfair. Though betting exchanges have seen weak liquidity in the states so far, a predictions offering available nationwide would quash these concerns.
Expanding into prediction markets could prove a game-changer for Flutter, luring in fresh clientele and capitalizing on innovative gaming opportunities. Still, plans are under wraps, and no timeline or substantial details have been unveiled yet.
In brief:- US sports betting and iGaming revenue rose 15% and 32% respectively.- FanDuel maintained lead in betting and iGaming, courting a possible foray into prediction markets.- Flutter slashed full-year revenue guidance from $7.43-$7.93 billion to $7.15-$7.65 billion.
- Despite a minor dip in Flutter's stock price, the company's US sports betting and iGaming revenue increased by 15% and 32% respectively, contributing significantly to Flutter's overall revenue.
- Flutter's Chief Financial Officer, Rob Coldrake, emphasized that net revenue is the key metric, and although sports betting saw a decline during March Madness, Flutter's revenue continued to grow.
- In line with Flutter's prediction market subsidiary, Betfair, the company is considering expanding into prediction markets, which could potentially attract new clients and capitalize on innovative gaming opportunities.
