Flutter flexes US and UK muscles ahead of NYSE listing

Flutter Entertainment Plc has consolidated its leadership positions in the UK and US markets ahead of its NYSE listing date on Monday 29 January.

Publishing its pre-close trading statement for 2023 trading, the soon to be FTSE & NYSE gambling group reported Q4 revenue growth of 11% to £2.67bn. On a year-on-year basis, Flutter’s FY2023 revenues stand at £9.51bn, up 24% on FY2022 results of £7.69bn.

Headline growth was underpinned by Flutter global portfolio registering Average Monthly Players (AMPs) of 13.6 million during Q4 trading.

FanDuel maintains its position as the group’s largest revenue-generating unit, reporting robust end of year trading as Q4 revenues increased by 19% to £1.13 bn. Q4 KPIs saw FanDuel reach a peak metric of over four million AMPs.

Despite growth, FanDuel’s Q4 performance was impacted by customer friendly results, which saw revenue results revised by £147m below the previous guidance provided during Q3 trading.

For year trading, FanDuel revenues stand at £3.6bn, as Flutter US asset remains “the #1 US sportsbook with 43% Q4 gross revenue market share”.

Group CEO, Peter Jackson, commented: “The group traded well in Q4 underpinned by our leading local brands supported by global Flutter Edge advantages.

“In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength. 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.”

Excluding its US performance, Flutter delivered “continued market share gains” in the UK & Ireland, generating a 19% increase in Q4 revenues to £647m (Q42022: £543m) – reflecting growth in both sports (+19%) and gaming (+21%) segments.

On a year-basis, UK & Ireland revenue increased by 15% YoY to £2.45bn, with a 5% increase in AMPs to 3,911,000. Online revenue grew by 15%, while retail revenue increased by 10%.

Following key integrations, Flutter’s revamped International Unit maintained Q4 revenues at £582m. Completing its incorporation of Sisal assets, the International Unit achieved 36% YoY revenue growth to £2.28bn and became Flutter’s biggest AMPs contributor, registering over 4.1 million monthly customers.

Australia’s Sportsbet unit saw Q4 revenues decline by 9% to £304m, as the unit’s year revenues stood at £1.16bn (-8%) and AMPs declined by 2% to 1.1 million. Flutter states that Australia’s performance is in line with previous guidance, reflecting a year of regulatory adjustments across Australia’s territories.

Jackson continued: “Outside of the US, the quarter traded in line with expectations, with continued strong momentum in the UK&I supported by recent product enhancements and International growth driven by our “Consolidate and Invest” markets.”

Concluding its trading update, Flutter is on track for a NYSE listing on 29 January 2024. Full year 2023 numbers will be reported in US GAAP and US dollars on 26 March 2024, along with 2024 guidance.

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