Flutter revenue boosted 27% amid US expansion

Finance News

Flutter’s results showed why it aims to list in the US, as its American arm became its largest division in 2022.

The betting operator’s revenue grew by 27% to £7.69bn, with almost all the growth coming in the US. US revenue almost all from the FanDuel brand it acquired for $158 million in 2018 – almost doubled to £2.60 billion.

Marketing costs in the country remain high, as betting companies spend big on television ads and free bets to attract customers in states that have recently legalised sports betting. But Flutter’s £250 million loss in the country looks better than its US-based competitors.

The group as a whole made a £1.05 billion profit, with profit from the UK and Ireland coming to £654 million, up by 6%. In the UK.

Russell Pointon, Director, Edison Group: “Gaming company Flutter Entertainment has reported a strong increase in revenue and customer growth, whilst adjusted EBITDA increased by a much lower 4%. Flutter’s rapid US expansion has driven customer growth, with the number of average monthly players rising by 26% and revenue was at the upper end of expectations whilst EBITDA losses was at the lower end of guidance.

Acquisitions such as Italy’s Sisal and tombola products provided further boosts in revenue, while the FIFA World Cup drove a strong betting performance in the second half of 2022.
The group said its growing US business remained on track to be EBITDA positive in 2023, but it remains to be seen how prolonged inflation pressures and a possible recession later this year impact consumer spending habits across markets. Continued investment in Safer Gambling initiatives is an important priority, especially with the UK’s gambling review white paper looming on the horizon, despite its chronic delays. Flutter will be betting on strong results in the US and further strategic acquisitions in order to weather the macroeconomic storm, and its diverse range of products will provide some resilience.”