Implementing Flutter's growth strategy and adding Sisal resulted in strong player growth with an increase in AMP (Average Monthly Players) across all divisions (AMP +16%, revenues +13%):
- Sports revenues +4% despite the 12 percentage point impact of negative sports results compared to the previous year.
- Group-wide gambling recorded an exceptional performance with turnover of +26%.
- Excellent pro forma growth with AMPs +13% and revenues +9% (sports +2%, gaming +19%).
UNITED STATES – Strong pipeline of product innovations and investments in acquiring new players strengthen confidence in long-term leadership:
- Sports gross revenue share in Q3 of 40% (net revenue share of 47%); clear number 1 position thanks to a top product.
- Excellent start to the NFL season with a record number of new players acquired during the season launch (+37%).
- Positive results for our iGaming strategy; FanDuel is the fastest growing brand on the market with revenue of +52%; rose to second place in iGaming with a 23% market share.
Ex-USA group – Revenue growth of 10% (pro forma +5%) in line with the long-term growth framework of 5-10%, despite particularly customer-friendly sporting results and the decline in the Australian racing market:
- United Kingdom and Ireland – Excellent strategic results: customer base expansion +5% and revenue growth +11%.
- Australia – The decline in racing market revenues more than offset the good retention of the expanded player base, resulting in a decline in Sportsbet revenues (-7%). The weakness in the racing market is expected to continue through 2024.
- International – Pro forma revenue in Consolidate and Invest markets +11%, with total AMP increasing +12% and revenue +5%.
Sustainability – It remains a key priority. Highlights include hosting our second dedicated FanDuel Play Well event, winning the EGR Global Operator DE&I Model of the Year award and continued co-operation and collaboration in industry consultations across the UK, Ireland and Australia.
Guidance for 2023 – Reflects very customer-friendly September and October results at Group level:
- UNITED STATES – Revenue and adjusted EBITDA of approximately £3,75 billion ($4,7 billion) and £140 million ($180 million). Achieving full year structural profit despite continued investment in customer acquisition to drive long-term growth (previously reported revenue range: £3,6bn – £3,9bn, range of EBITDA £90m – £190m).
- ex-USA Group – Adjusted EBITDA is now forecast at approximately £1,44 billion (previously indicated range: £1,44 billion – £1,6 billion), despite very customer-friendly sporting results (50 million pounds) and negative changes in exchange rates (30 million pounds). Increased investment in Flutter Edge to drive Group-wide growth and weakness in the Australian racing market are offset by underlying strength in the UK and Ireland and internationally.
Listing in the United States – Application for listing has been submitted to the SEC; additional listing on the NYSE is expected in Q1 2024 and delisting from Euronext Dublin at the same time or shortly before.
In international division, the 19% growth in recorded revenues reflects the benefits of Sisal, acquired in August 2022, and good organic growth within the company. On a pro forma basis, the division achieved revenue growth of 5% and AMP growth of 12%. Revenue from the Consolidate and Invest markets, which represented 78% of the division in the quarter, grew 11%. Sports revenues decreased 7% due to the negative impact of customer sports results. Gaming growth of 9% was primarily driven by strong execution in India (+52%) and Turkey (+192%). In Italy, revenues decreased by 4%. This figure reflects a higher mix of sports betting revenues compared to other markets and therefore a greater impact of customer friendly results. Furthermore, more difficult comparative data is also included due to the increased player involvement due to the Superena jackpotlotto of the previous year, which reached record levels until the win in the first quarter of 2023.
Peter Jackson (pictured), Chief Executive of Flutter, commented: “The Group had another strong quarter in Q3 and even in this quieter seasonal period, the power of our diversified business is evident with revenue growth of 13% at over £2 billion. We remain the number one choice for sports betting and gambling customers globally, and the 16% growth in average monthly players bodes well for our continued growth and market leadership. We are particularly pleased with the great progress we are making in the United States. We are the first online operator to achieve structural profitability and strong EBITDA growth in 2023 will continue into 2024 and beyond as our profit margins increase substantially. The NFL season got off to an excellent start, with our product leadership resulting in average monthly player growth of 38% to 2,6 million in the quarter. I'm excited about our plans for the event-packed months of November and December as we execute on our winning strategy, which, combined with our FanDuel advantage, positions us to lead the industry.
Outside of the United States, our strategy allows us to capitalize on the many growth opportunities in our global markets. Our diverse portfolio of leading brands is well positioned to adapt to the challenges and opportunities of their respective markets. In the third quarter, our UK and Irish brands continued to gain share in online and retail channels thanks to our winning product offerings. Additionally, our Consolidate and Invest markets have given a strong boost to our international business. We were pleased to add MaxBet to Flutter's portfolio, in line with our strategy of acquiring “Local Hero” brands in attractive markets. While Australian racing market conditions remain challenging, as the clear market leader with a player base 1,8 times that of 2019, we are confident that Sportsbet is the best positioned brand in the market.
We are making good progress towards a US listing, which will bring significant benefits to the Group through access to the deepest and most liquid capital markets in the world. Overall, the significant growth potential in the United States, and the ability to leverage the scale advantages of our diversified portfolio outside the United States, strengthens our confidence in our significant and sustainable long-term earnings growth potential."
