Flutter Entertainment, the renowned gaming operator, has made a pivotal decision to delist from Euronext Dublin, marking a significant strategic shift.
Strategic delisting move
This move is accompanied by plans to secure a listing on the New York Stock Exchange in the first quarter of 2024, reflecting the company’s ambitious global expansion strategy.
Regulatory complexities and technical hurdles
Flutter’s departure from the Dublin Stock Exchange is attributed to a dual objective: avoiding regulatory complexities and overcoming technical challenges. While the company expresses a desire to maintain its listing in Ireland, it underscores the necessity to streamline operations and regulatory adherence. The decision comes amidst the backdrop of the New York State Gaming Commission’s revelation of Flutter-owned FanDuel’s remarkable success, making New York the first state to surpass a $2 billion handle in online sports betting.
Q3 trading update
Only last week, Flutter announced its Q3 results, showcasing strong growth. The report highlights the company’s commitment to its expansion strategy and the impact of the Sisal acquisition, providing a comprehensive view of its diverse business divisions.
Group-wide surge
Flutter’s overall performance in Q3 reflects the successful execution of its growth strategy and the positive influence of the Sisal acquisition. Average Monthly Players (AMPs) surged by an impressive 16 percent, underpinning a remarkable 13 percent growth in revenue. Despite a 12-percentage point impact from adverse sports results year on year, sports revenue managed to grow by 4%. The real standout, however, was the group-wide gaming segment, which exhibited exceptional growth with a staggering 26% increase in revenue.
The pro forma figures, inclusive of Sisal for a full 3-month period in both 2022 and 2023, reinforce the strength of Flutter’s approach, revealing an AMP growth of 13 percent and a revenue increase of 9 percent. This growth was well-distributed, with sports contributing 2 percent and gaming soaring with a substantial 19 percent uptick.
US dominance and global resilience
In the highly competitive US market, Flutter demonstrated its prowess, maintaining a clear number one position with a Q3 sports gross revenue share of 40 percent. The strategic focus on product innovation and significant investments in new player acquisition paid off, with a record number of new players acquired during the NFL season launch, marking a remarkable 37 percent increase.
FanDuel, under Flutter’s umbrella, emerged as the fastest-growing brand in the market, boasting an extraordinary 52 percent revenue growth and securing the second position in iGaming with a substantial 23 percent market share. These achievements affirm Flutter’s confidence in long-term leadership in the US market.
Internationally, despite facing challenges such as customer-friendly sports results and a declining Australian racing market, the group exhibited resilience. The UK & Ireland division expanded its customer base by 5 percent, achieving an 11 percent revenue growth. In Australia, though racing market revenue declined, Flutter’s Sportsbet maintained its position as the market leader. The International segment witnessed pro forma revenue growth of 11 percent, driven by Consolidate and Invest markets, demonstrating the company’s global adaptability.
CEO Perspective
Peter Jackson, Chief Executive, expressed satisfaction with the Q3 performance, emphasizing the diversified business’s strength and the company’s status as the global leader in sports betting and gaming. He highlighted the significant progress made in the US, where Flutter achieved structural profitability and anticipates continued growth.
Jackson pointed out the excellent start to the NFL season, showcasing FanDuel’s dominance with a 38 percent growth in average monthly players. Looking beyond the US, Flutter’s diversified portfolio of brands in the UK, Ireland, and International markets positions it well to navigate challenges and capitalize on growth opportunities.
In summary, Flutter Entertainment’s Q3 report signals a strategic shift, reinforced by strong financials, sustained growth, and a global outlook that positions the company as a leader in the highly dynamic gaming industry.
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