Flutter Entertainment plc (formerly Paddy Power Betfair plc) has posted third-quarter revenues that are up 31%. The main drivers are international business and increases in the US market.
In the market update released this week, Flutter noted that revenues over the last 3 months (Q3) amount to $2.18bn (£1.89bn €2.17bn) while the same period last year saw revenues at $1.68b (£1.44bn).
The trading note was reported mostly on a “constant currency basis” with some year-on-year numbers for balance. Revenue is expected to increase by 82% on a constant currency basis.
The US is expected to become the firm’s largest market by a small margin outpacing UK and Ireland, traditionally its biggest performer. US revenues are expected to grow 114% year-on-year to $598m.
Sports revenue rose some 106% with feeders being daily fantasy sports, exchange, sportsbooks, advance deposit wagering, and B2B products powered by new customer acquisition in existing state markets as the NFL season kicks off.
US Sports Revenues Break Records
On a broader note, the AGA’s monthlycommercial revenue tracker is showing American sportsbook settings a new record in Q3 of $1.68bn in revenue – an 80.6% increase year-on-year. The first nine months of 2022 have already produced more revenue ($4.78bn) than was generated in all of the last year ($4.34bn) leaving Q4 to fill the gravy bowl.
Flutter revenues from iGaming in the US are expected to rise by more than a third at 36% with 40% more total iGaming players this year than last. Part of the increase is attributed to Fanduel casino’s daily rewards and other new content in 2022.
UK and Ireland are expected to show more sane growth with y-o-y numbers up 4% and up 3% on the basis of constant currency.
Thanks to a big increase in action in Q3 2022 due to the European Championships which happen only once every four years, sports revenues are expected to drop a little over 10% this year to less volatile numbers. Hot summer weather also drove football numbers down this year. Retail gaming is expected to drop 2% and retail sports revenue is expected to fall 3% for the quarter.
Flutter’s international business numbers were up considerably thanks in part to its acquisition of Sisal in August – the revenue numbers include two months of Sisal influence with an overall 43% increase in revenues across the sector which is led by PokerStars.
Chief executive, Peter Jackson said: “Flutter delivered a strong Q3 performance with pro forma growth of 11% in both revenue and average monthly players.
“Our US division is now our largest and generated $700m in revenue, up 82%. Good growth in our ‘consolidate and invest’ international markets and the acquisition of Sisal in August helped drive ex-US revenues.”
Speaking directly about the Sisal acquisition, Jackson said: “Outside of the US, we welcomed Sisal, Italy’s leading gaming operator, to our international division during the quarter and look forward to working with the team to grow the business in Italy and in other international markets.”
Source: Flutter revenue up 31% in Q3 as US becomes largest market, iGaming Business, November 9, 2022
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