Flutter Q1 Revenue Up 16% YoY, as FanDuel Continues Driving Growth

Steven Melendez

Updated on:

flutter nyse earnings

Flutter plc reported revenue of $3.4 billion for the first quarter, up 16% over the same time last year, as its FanDuel unit leads the U.S. sportsbook and iGaming markets.

The company saw revenue soar 32% in the United States, despite “unfavorable sports results” from March Madness during the second half of March. Average monthly players in the U.S. rose 15%, with the launch of its online sportsbook in North Carolina and Vermont and new player acquisition at a rate of 12% in states where it’s operated since before 2022. North Carolina alone saw a whopping 5.3% of the adult population sign up for FanDuel within the first 45 days of operation, according to the company.

“We continue to offer the best customer proposition in the U.S. both in terms of the quality of our product and the value given to customers,” said CEO Peter Jackson in an earnings call Tuesday. “Our product offering is continually evolving, and I’m genuinely excited about the pipeline ahead of us.”

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FanDuel saw 52% of net gaming revenue and 46% of gross gaming revenue in the U.S. sportsbook market, the company reported, and a record 27% of gross gaming revenue in the U.S. iGaming market. In iGaming, the company added exclusive access to World of Wonka online slots, a popular brand in land-based slot play that quickly became FanDuel’s leading iGaming title. And on the sportsbook side, the company rolled out new MLB betting options for the baseball season.

Appropriately, Flutter has moved its operational headquarters to the United States and plans to make its New York Stock Exchange listing its primary one as of May 31. The company is also listed on the London Stock Exchange.

“This is a key milestone in the natural evolution of flutter as FanDuel continues to scale rapidly, and the U.S. becomes an even greater part of our business,” Jackson said.

Still, Flutter reported a net loss of $177 million, compared to $111 million in the first quarter of last year. That was attributed to non-cash charges of $356 million, including $172 million in acquired intangibles amortization and $184 million related to Fox Corporation’s outstanding option to buy a stake in the company. The company reported positive adjusted earnings before interest, taxes, debt, and amortization of $514 million, up 46% over Q1 2023.

Growth was also strong outside the United States, with revenue excluding the U.S. up 8%—led by an outside-the-U.S. 15% growth in iGaming revenue—and ex-U.S. average monthly players up 10%.

“Outside of the U.S., our focus on delivering the best products for our players is driving good momentum in key markets such as the U.K. where the launch of Super Sub on Paddy Power has been our most successful product launch to date, and in Italy where we have been taking online sports betting and iGaming market share during Q1 and reached an all-time record in April,” Jackson said in a statement.

Super Sub refers to a promotion where player-based bets also can be fulfilled by a player who substitutes for the subject of the bet. The company also saw strong iGaming growth in the United Kingdom and Ireland, where it operates Paddy Power, with more than 100 new games launched during the quarter. The region’s iGaming revenue rose 27%, with sportsbook revenue up 9% year-over-year, on top of the previous year’s strong performance due to the FIFA World Cup.

Flutter also completed its acquisition of MaxBet, a major operator in Serbia, in the first quarter.

“The group delivered another strong set of financial results in the first quarter and remains on track for strong growth in the full year,” said CFO Paul Edgecliffe-Johnson in the call.