Despite stellar performance across most key verticals, Flutter Entertainment ended the year at a net loss due to several strategic acquisitions, rising interest, higher expenses, and taxes. The company’s management team had only positive remarks, emphasizing the potential growth in several attractive new jurisdictions and the opportunity to consolidate its dominating position in mature markets. A rise in overall players and plans for a US listing should yield long-term benefits.
Successful USA Launches Saw Revenues Skyrocket
On the surface, Flutter Entertainment’s end-of-the-year results appear very impressive. Total 2022 revenue reached £7.69 billion ($9.19 billion), marking a 27% increase compared to 2021. EBITDA also rose by 27% to £918 million ($1.1 billion). Despite record growth, the company reported a loss after tax of £305 million ($364 million). The tombola and
Sisal acquisitions and the purchase of Adjarabet contributed to a net debt of £4.6 billion ($5.5 billion).
Headway in the USA significantly expanded the company’s scale thanks to excellent customer acquisition. Maryland and Ohio marked some of Flutter’s most successful launches, securing its position as the leading US sportsbook. With an average Q4 sports betting market share of 50% across all states and a revenue growth of 67%, the company reached profitability as early as Q2 and now stands poised for further expansion.
We have an unparalleled number one position in the US where we continue to go from strength to strength.
Peter Jackson, Flutter Entertainment CEO
Flutter’s core markets outside the USA contributed roughly 75% of 2022’s revenues but enjoyed more modest but nonetheless impressive growth. Profits in these jurisdictions rose by 22%, but regulatory headwinds and safe gambling initiatives impacted profits. However, average monthly players continued to grow despite these challenges, maintaining Flutter’s overall momentum.
Flutter Enters 2023 as a Clear Market Leader
The Group’s financials lay a strong foundation coming into 2023. CEO Peter Jackson was especially pleased with Flutter’s performance in the USA. He added that the FanDuel brand was among the most successful, delivering record Super Bowl performance and helping onboard over 1.2 million clients. Jackson was also optimistic regarding Flutter’s international prospects and expansion opportunities.
We are well placed to build on gold medal positions in our mature markets while we are delivering very strong growth in a range of attractive high-growth markets.
Peter Jackson, Flutter Entertainment CEO
Flutter’s position as the leading USA sportsbook inspired plans for a US listing to help facilitate its further expansion. The company expects such a move to yield many long-term benefits, further strengthening its profile in the country. Despite increased debt, Flutter maintains its commanding presence and will likely continue to leverage its position to further its global reach.