Online betting giant Flutter expects its profits to rise by around 30% this year thanks to a at least four-fold increase in its fast-growing and market-leading US brand Fanduel, the world's largest online betting company .
Flutter Entertainment, the world's leading online sports betting and iGaming operator, today announced results for the fiscal year ending December 31, 2023.
The fiscal year ending 31 December 2023 has Group revenue growth of 17,5% at the midpoint.
The Group's excellent strategy led AMP to +20,3% and revenues to +24,6% on an annual basis •
US business growing rapidly with revenue +40,7% and first year of positive adjusted EBITDA: ‒ Product innovation helped add 3,7 million new customers with expected payback periods
‒ The number 1 position in the sports betting sector continues with a share of net sports gaming revenues (NGR) equal to 53,4%; in the fourth quarter of 20235
‒ FanDuel, the #1 iGaming brand in January 2024; US GGR share of 25,7% in Q20235 XNUMX
• Outside the US, the diversified portfolio delivered AMP +15,0% and revenue +16,4% year over year:
‒ Strong UK performance added 2 percentage points of GGR market share to 30%
‒ The “Local Hero” strategy drove growth in the international “Consolidate and Invest” markets, while the division benefited from the full-year consolidation of the Sisal acquisition
‒ This strong growth more than offsets a weaker Australian racing market in 2023 and the previous year's slowdown benefiting from increased player engagement following Covid restrictions.
2023 Financial Outlook • Net loss of $1.211 million reflects the strong performance described above, but net of non-cash charges of $1.681 million due to the PokerStars brand write-down of $725 million reflecting increased emphasis on strategy review local"; amortization of acquired intangible assets of $791 million; and fair value of $165 million change on Fox Option liability, (IFRS net loss $981 million) • Group further adjusted EBITDA (excluding share-based payments) of $1.874 million, +45,4% y-o-y year: ‒ US Adjusted EBITDA of $65 million, additional Adjusted EBITDA of $167 million despite significant Q2023 XNUMX customer-friendly sports results
In Italy, Sisal is the number one online brand in the sports, iGaming and lottery market and has helped deliver revenue growth of 10,3%. Market share growth in Georgia and Armenia which continued to leverage key local partnerships in Brazil.
CEO Peter Jackson commented on the results: “Flutter delivered strong performance in 2023 as we continued to execute on our strategy. This achievement was supported by a localized approach to technology and product. As anticipated, our number one position in the US transformed the Group's earnings profile during 2023 as FanDuel reported positive full-year adjusted EBITDA in the US for the first time.
Outside of the US we have made excellent progress in integrating Sisal into our international market, a business which is a great example of our 'local hero' strategy at work, and has conquered the market in the UK. We have also made further progress in our sustainability strategy with an increase in safer gambling tools, investing more than $100 million in our global safer gambling initiatives including major marketing campaigns in the US with our FanDuel testimonials to promote responsible gaming. I am proud to see Flutter shares trade for the first time on the NYSE on January 29, 2024 and we have been encouraged by the increased attention from new US investors following our US listing. We are working to approve our move to NYSE primary listing. The year started well, with excellent momentum that continued into the first quarter. Record Super Bowl contributed to US revenue growth of 55,6% for the period from January 1, 2024 to March 17, 2024. We also launched our services in North Carolina, where we were really pleased with the performance . Outside of the United States, revenue grew 6,3% as market-driven declines in Australia were offset by growth in our UKI business and other international businesses. We believe our strategy and competitive advantages position us well to continue growing the business through both organic activities and inorganic opportunities."
