FTSE 100 company Flutter Entertainment has released its 2023 financial results, revealing impressive revenue growth of almost 25% year-on-year.
This is the first time the operator has disclosed its financials since its debut on the New York Stock Exchange.
Flutter’s total revenue in 2023 was $11.8 billion, a significant increase compared to the $9.5 billion recorded in 2022.
This growth was driven in part by the increase in average monthly players, which grew 20.3% compared to the previous year, reaching 12.3 million players.
Despite this, the group’s net loss reached the mark of 1.2 billion dollars.
Flutter performance by region
However, Flutter performed solidly in several key regions such as the US, UK and Ireland. The operator also recorded a sports betting crossover rate of 53% in the fourth quarter, driven by the Paddy Power brand.
Thus, US revenues grew by 40.7%, reaching US$4.5 billion, while sports betting and gaming revenues increased by 45.9% and 47.2%, respectively.
Additionally, excluding US operations, Flutter’s revenue increased 16.4% to $7.3 billion.
So, the positive performance was driven by strong performance in the UK and Latin America, as well as the Italian brand Sisal, which generated US$1.2 billion in revenue.
But despite growth in several regions, Flutter faced challenges in 2023. Revenue from the Australian market fell 7.1%, due to softer racing market conditions and lower engagement from Australian players, following the easing of COVID restrictions. -19.
To address these challenges, Flutter adopted a “local hero” strategy, focusing on lower growth markets. Therefore, the company invested in safer betting games, such as the Play Well campaign, which promotes responsible gambling.
Balance of the first quarter and 2024
In the sports betting scenario, the first quarter of 2024 brought encouraging results for Flutter Entertainment.
According to the company, the group’s total revenue showed a significant increase compared to the previous year, reaching a growth of 23.4%.
Therefore, this growth is even more significant when we consider the exclusion of operations in the USA, with an increase of 6.3%.
Thus, one of the highlights of this period was the acquisition of MaxBet in the Serbian market, completed in January. This strategic move demonstrates Flutter’s expansion and its search for new growth opportunities in promising markets.
Flutter CEO Peter Jackson highlighted the good performance in the US, with an impressive 55.6% growth in revenue.
“Of course, this percentage was driven by record Super Bowl engagement. Additionally, the successful launch in North Carolina also contributed positively to the company’s results.”
Flutter in the second half and in the future
For the remainder of the year, Flutter projects even more positive results. Revenue in the US is expected to be between $5.8 billion and $6.2 billion. Adjusted EBITDA guidance is US$635 million to US$785 million.
Australia, in turn, received guidance of approximately US$250 million in adjusted EBITDA.
Thus, another important milestone was the listing of Flutter on the New York Stock Exchange, which took place on January 29, 2024. This move generated greater interest from investors in the USA, which is seen as a positive step for the company.
Therefore, the results are solid in the first quarter and the outlook is positive for the rest of the year.
