Flutter Entertainment has shared its financial results for the third quarter of the year. The gaming group has reported a 31% year-on-year increase in revenue, amounting to £1.89 billion ($2.16 billion). The sports betting and online gaming giant has upgraded its US revenue guidance, standing now at $2.95 billion-$3.2 billion, as FanDuel outperforms expectations.
“Flutter delivered a strong Q3 performance with pro forma growth of 11% in both revenue and average monthly players,” commented Peter Jackson, CEO. “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.”
The executive further said the company is “really pleased” with the performance of its US division since the start of the NFL season in September, now averaging over 1 million players on a regular NFL Sunday. Moreover, the firm is seeing an increase in customer retention rates as its parlay products continue to grow in popularity, boosted by the start of the NBA season.
In addition to leading to an upgrade of the outlook for the year, the ongoing momentum in the US has also led Flutter to restate its expectations that the division will be profitable for 2023. As for outside of the US, the business welcomed Italian operator Sisal to the International division during Q3, and Flutter now looks forward to growing the business there and in other markets.
The FTSE 100 group accounted for over 9 million active monthly players (AMPs) across its global portfolio during the quarter. Excluding the US, where FanDuel holds a leading 42% of market share, the group also saw commercial growth with revenues up 6% and AMPs growth of 19%. Improved results saw Flutter’s UK and Ireland divisions register a 13% increase in AMPs to 3.4 million, and online gambling revenues hike by 10%.
The company retained its full-year group core profit guidance of between £1.29 billion ($1.47 billion) and £1.39 billion ($1.58 billion), following continued Irish retail store weakness and the cancellation of some sporting fixtures in the UK during the quarter.
In his Q3 remarks, Jackson referenced news this month that a New York arbitrator ruled Fox Corp. can exercise an option to acquire a significant stake in FanDuel from a $22 billion valuation. Fox now has a 10-year period to exercise the option to buy an 18.6% stake in the business, subject to an annual compounding carrying value adjustment of 5%.
“We were delighted with the successful outcome of our arbitration process with FOX,” said Flutter’s CEO. “This vindicates our position on the matter, with FanDuel valued at $20 billion based on its fair market value at 3 December 2020 and provides important clarity on the significant cost required to buy into the number one US gaming business.”
“As we look ahead, our product and geographic diversification, as well as our recreational customer base, position us well for future growth,” he concluded.
See Flutter’s full Q3 results here.