Flutter raises U.S. revenue guidance, sees positive EBITDA next year

Posted: Nov 09, 2022 15:03 Category: Europe , Online , Sportsbetting , Posted by Sharon Singleton

Flutter Entertainment has raised its full-year revenue guidance for the U.S., where it claims a 42 percent online sportsbook market share, and said it expects to be EBITDA positive next year. 

In a 3Q22 trading update, it said it sees U.S. revenue of between $2.95 billion and $3.2 billion, up from its prior guidance for revenue of $2.85 billion to $3.1 billion. 

The adjusted EBITDA loss is still expected within its prior guidance range of $300 million to $360 million. 

The owner of brands such as Paddy Power and FanDuel said overall revenue in the quarter was up 22 percent at constant currency reaching GBP1.89 billion.

“We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over 1m players on a regular NFL Sunday,” CEO Peter Jackson said. “In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season. The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.

Flutter welcomes Sisal team

“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.”

The U.S. division is now the company’s largest, with revenue of $700 million in 3Q22, up 82 percent on the prior year. 

Flutter said strong growth in its “consolidate and invest” international markets had been offset by regulatory changes and tough year-on-year comparisons due to Covid. This was the case in particular in Australia, where revenue was down 21 percent at constant currency and the U.K. and Ireland retail, which saw a 3 percent dip. 

In Australia, Flutter said its SportsBet brand had seen a slight increase in monthly active players, but there had been lower engagement compared with last year when nearly 60 percent of the country was in lockdown.

Jackson also again welcomed a U.S. court ruling that found that Fox Corp. must pay full market value if it wants to exercise its option for a stake in FanDuel.

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