Flutter Entertainment Financial Report Q4 2023

Flutter Entertainment has experienced a significant 15 percent year-on-year increase in revenue, reaching ￡2.67 billion for Q4 2024. This has led to a surge in Flutter Entertainment shares.

Performance highlights

The US continues to be Flutter’s most robust market, with FanDuel leading the sports betting sector with a 43 percent gross revenue market share. It also ranks second in iGaming, holding a 26 percent share. This strong performance resulted in a 26 percent rise in US revenue to ￡1.14 billion in Q4, compared to the same quarter last year. This growth was fuelled by a 33 percent increase in average monthly players, totalling 4,032.

Gaming revenue saw a substantial 49% increase, while sports betting revenue rose by 21%, aided by a 53% increase in sportsbook stakes. However, Flutter’s US revenue growth in Q4 was partially offset by a 150bps decline in sportsbook net revenue margin to 7%. This decline was attributed to customer-friendly sports results during the quarter and a 4.2 percent increase in promotional spend.

Impact of adverse sporting results

Adverse sporting results had a negative impact of ￡343 million in the quarter, causing US net revenue to fall nearly ￡150m below Q3 guidance. As a result, adjusted EBITDA was negatively impacted by approximately 35 percent

CEO’s remarks

Flutter CEO Peter Jackson, (in photo above), commented on the performance, stating, “In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength. Despite sports results being very customer-friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024.”

Performance Outside the US

Excluding the US, group revenue increased by 8 percent to ￡1.53 billion, in line with previous guidance. Growth was reported in the UK & Ireland (19 percent) and International divisions (4 percent), with Australia being the only territory to report declines, amid an annual downturn of 2 percent.

Full-year results

Flutter posted impressive numbers for the full year, with overall 2023 revenue climbing 25 percent to ￡9.51billion. This was driven by a 23 percent rise in sports revenue and a 29 percent rise in gaming revenue. US revenue soared 41 percent year-on-year to ￡3.6 billion. All major territories reported impressive gains except for Australia, which dropped 3 percent to ￡1.17 billion.

Analyst remarks

Regulus Partners analyst Paul Leyland highlighted Flutter’s performance in the UK as the standout, especially when compared to competitors such as 888, which reported an 8% dip in full-year UK online revenue.

US listing update

Flutter expects its additional US listing of shares to commence from 29 January 2024 on the New York Stock Exchange. The business will now report in US dollars, starting with its full-year 2023 results, scheduled for 26 March 2024. This is also when 2024 guidance will be revealed.

Flutter Entertainment plc (FLTR.L) is trading at GBp15,175.00 (14.96 percent)

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