Flutter Entertainment has reported impressive performance for H1 2023, marking a pivotal shift in the company’s US profitability trajectory and setting a new benchmark for its global financial operations.
Earnings ascend
With an increase of 42% year-on-year, Flutter group revenue touched £4.8bn. Group EBITDA witnessed an impressive surge of 76% to £765m, while profit after tax swung positively, amounting to £128m, rebounding from a loss of £112m in H1 2022.
US triumph
Driving this transformative growth was Flutter’s US segment, which, for the first time, reached a profitability inflection point.
The US arm saw revenue soar by 63%, with FanDuel alone churning out an adjusted EBITDA of $100m (£79m) in H1.
This resulted in overall US division EBITDA of £49m, up from a £132m loss in the prior corresponding period.
FanDuel represented 98% of Flutter’s US revenue across a division that also includes TVG and the loss-making Fox Bet and PokerStars businesses.
Fox Bet, which is live in Colorado, Michigan, New Jersey and Pennsylvania, is now in the process of being shut down.
Flutter’s dual listing of shares in the US is expected to take place in late Q4 2023 or early Q1 2024.
UK & International
While the US was the clear frontrunner, the UK and International sectors weren’t far behind. The UK and Ireland posted a revenue surge of 13% thanks to product enhancements.
Sisal, the Italian market leader acquired in August 2022, emerged as a strong contender in the international market with pro forma revenues up 24%.
Sustainability progress
Flutter’s commitment to responsible gambling is reflected in the positive uptick in its Play Well tool usage, which increased by seven percentage points in H1 to 42%.
The company is also making strides in gender inclusivity, with 34% of leadership roles now occupied by women, inching closer to the stated 2026 target of 40%.
US Listing on the Horizon: Flutter is setting its sights on a US stock market listing, projected to materialise either by late 2023 or early 2024.
What they said
Flutter CEO Peter Jackson said: “H1 2023 has truly been transformational for Flutter, especially with our US business steering our earnings to an all-time high.
“Our robust performance, fuelled by the Flutter Edge, led to a whopping 37% growth in pro forma EBITDA.
“Our acquisition of over two million new players in the US, our growing stronghold in sports, and our 23% market share in iGaming underline our dominant position.
As we venture into the second half of 2023, we’re optimistic and eager to continue this momentum, and the prospect of a US listing further amplifies our excitement for the future,” he added.
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