Flutter has published the results achieved by the company in the fourth quarter of 2023. Below are all the details:
- Group: Flutter strategy execution supported strong growth in AMP (+12%) and revenue (+15%).
- UNITED STATES: strong momentum given by AMP +33%, sports betting +53% and gaming revenues +49%.
- FanDuel remained the number one US sportsbook with a market share of 43% of gross revenues in the fourth quarter (51% of net revenues), with industry-leading pricing and risk management capabilities enabling significant growth of the expected gross revenue margin.
- FanDuel Casino, the #2 iGaming brand, continued to gain market share reaching 26% in Q4, an increase of 5 percentage points from the previous year.
- Q4 revenue growth (+26%) reflects this underlying strength, partially offset by a decline in sports betting net revenue margin of 150 percentage points compared to the prior year, to 7,0%, due to:
– a 220bps expansion in expected sports betting gross profit margin compared to the previous year, to 13,5%, offset by;
– a negative swing in year-on-year sports results of 320 bps due to very customer-friendly sports results in the quarter (Q4 2023: -240 bps negative, Q4 2022: +80 bps positive) and;
– a 50 bps increase in promotional spend compared to the previous year, to 4,2%, in line with previous year's spending levels, which continue to generate strong returns.
- Compared to expectations, Q4 gross revenues were impacted by customer-friendly sports results of $343 million. which were primarily mitigated by expected gross profit margin which was better than expected. This resulted in Q4 US net sales of £1.139 million/$1.417 million, £147 million/$225 million lower than previous third quarter guidance, with flow of approximately 35%. % of adjusted EBITDA.
- Ex-USA group: Strong momentum in the 4th quarter, leading to fiscal 2023 results in line with the guidance provided in the 3rd quarter.
- UK and Ireland (revenues +19%): continued market share gains thanks to product improvements.
- Australia (turnover -2%): reflects racing performance in line with expectations.
- International (revenues +4%): driven by the Consolidate and Invest markets which grew by 7%.
- US listing and Flutter reporting:
- The effective date of listing on the NYSE is expected to be January 29, 2024, subject to effective date of registration statement on Form 20-F with the U.S. Securities and Exchange Commission.
- On March 26, the Group will report full-year 2023 data in US GAAP and US dollars and provide guidance for 2024.
- MaxBet: Transaction completed on January 9, 2024, adding a local hero brand in Serbia, a fast-growing regulated market, to Flutter's portfolio.
Peter Jackson (pictured), CEO of Flutter, commented: “The Group performed well in the fourth quarter, driven by our leading local brands, supported by the global benefits of Flutter Edge. In the United States, FanDuel solidified its leading position in the sports industry during the peak quarter of sports activity, while FanDuel Casino went from strength to strength. While sports results were very customer friendly, particularly with the NFL in November, the underlying momentum of the business remains very strong heading into 2024. Outside of the US, the quarter was in line with expectations, with continued strong momentum in the UK and US, supported by recent product improvements, and international growth driven by our Consolidate and Invest markets. Based on the effectiveness of our registration statement on Form 20-F with the US Securities and Exchange Commission, we are very pleased that the addition of a US listing for Flutter is now just days away. This is a pivotal moment for the Group, as we make Flutter more accessible to US investors and gain access to deeper capital markets. I look forward to 2024 and the momentum within the Group to continue to grow."
