FanDuel Owner Flutter Posts Q4 2023 Trading Update, US Market Leads Revenues

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Flutter Entertainment, the Irish parent company of leading U.S. sportsbook FanDuel, experienced a significant revenue boost in 2023. The numbers were primarily driven by growth in its U.S. operations, Flutter announced this week in a trading update.

The group’s revenue soared by 25% year-on-year, reaching £9.51 billion, with FanDuel contributing a 38% increase to £3.06 billion. That’s despite missing its revenue target in its sports betting business amid a generally booming U.S. market.

This remarkable growth in the U.S. market accounted for 37.9% of Flutter’s total revenue. It was led by a 38% rise in average monthly players, now more than 3.2 million.

The success in the U.S. saw FanDuel’s sportsbook operations finish the year with a 43% gross revenue market share across all U.S. jurisdictions it operates in. Meanwhile, among U.S. online casinos, it wasn’t so successful – but it still captured a strong 26% share during the quarter.

Flutter’s performance across the pond in its home markets of the UK and Ireland also showed positive trends, with revenue up by 15% to £2.46 billion.

The final quarter of 2023 saw Flutter’s group revenue climb by 15% to £2.67 billion, with sports betting revenue increasing by 8% to £1.66 billion, and other gambling revenue up 15% to £1.02 billion.

Despite this, U.S. revenue during the quarter was lower than expected, missing the operator’s self-imposed target by £147 million. That’s as football betting fans in particular had a good few months against the books.

Flutter’s shares, soon to be moved to the New York Stock Exchange from London’s, rose around 15% in price at the news this week. However, the market will have to wait until March to see the full 2023 reports on profit or potential loss.

“The Group traded well in Q4, underpinned by our leading local brands supported by global Flutter Edge advantages. In the U.S., FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength,” said Flutter CEO Peter Jackson in a company statement.

“While sports results were very customer-friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024.”

Flutter’s 2023 and Future

In the era of legalization, FanDuel and DraftKings have been the only two U.S. online sports betting operators to post yearly profit. It will be interesting to see if FanDuel kept that up in 2023, as overall revenues seem high. But they also missed their own targets.

During the year, Flutter axed off struggling sportsbook FoxBet, replaced its Chairman Gary McGann with an American, John Bryant, and continued to see FanDuel go from strength to strength.

Going into 2024, its U.S. stock listing at the New York Stock Exchange is set for January 29.

“Subject to the effectiveness of our Form 20-F registration statement with the U.S. Securities and Exchange Commission, we are very excited that the addition of a U.S. Flutter listing is now just days away,” Jackson wrote.

“This is a pivotal moment for the Group as we make Flutter more accessible to U.S.-based investors and gain access to deeper capital markets. I am looking forward to 2024 and further building on the momentum within the Group to continue delivering growth.”

In 2023, FanDuel expanded into four U.S. markets, including sports betting in Massachusetts, Ohio, Kentucky, and Maine. It also debuted enhanced football and golf betting products across its sportsbooks. Going into 2024, it recently launched sports betting in Vermont. It will also continue its partnership with the PGA Tour for access to the upcoming North Carolina sports betting market.

The operator also recently bought a plush $71 million Beverly Hills office, despite not offering full sports betting in California. That signaled its continuing commitment to its fantasy sports and horse race betting operations.

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