Flutter Entertainment, the parent company of FanDuel, reported a 7.6% increase in revenue to £2.04bn (€2.33bn/$2.50bn) for the third quarter. The company attributed this growth to its strategic expansion and the impact of the Sisal acquisition. However, its Sportsbet business in Australia continued to face challenges.
FanDuel, acquired in May 2018, has become a major revenue driver for Flutter, particularly in the US market. CEO Peter Jackson expressed confidence in the future growth of the US business, citing the achievement of structural profitability in the first half of the year.
In the US, revenue reached £668m in Q3, representing an 11.7% increase. The company emphasized its plans for continued growth, with a focus on the upcoming sports-rich months of November and December.
While overall sports betting revenue saw a 1.9% decline, gaming revenue rose by 22.2%, contributing to the company’s overall growth. In the US, the company saw a 10.0% increase in sports betting revenue and a 52.0% increase in igaming revenue.
Revenue in the UK and Ireland also experienced growth, climbing 11.2% to £566m. The company noted the positive performance of its online operations and a good start to the English Premier League football season.
Internationally, revenue rose by 15.7% to £539m, largely due to the Sisal acquisition. However, Flutter faced challenges in its Australian operations, with revenue dropping by 17.9% as a result of a challenging racing market.
Despite the headwinds in Australia, Flutter remains on track to meet its full-year guidance. The company expects the additional US listing to become effective in Q1 of 2024, with plans to delist from Euronext Dublin to minimize regulatory complexities.
Overall, Flutter remains confident in its long-term earnings growth potential, particularly in the US market, and is committed to leveraging its scale benefits across its diversified portfolio.