Revenue increased by 10.9% year-on-year. Flutter’s CEO, Peter Jackson, highlighted the positive performance of its sports betting segment in the US, particularly led by its subsidiary, FanDuel. Although FanDuel incurred losses for the half-year, it achieved profitability in Q2. Flutter extended its leadership in online sports betting in the US with FanDuel capturing a 51% market share and ranking first in 13 out of 15 states. This contributed to positive earnings in Q2.
In the US, revenue reached £1.05bn, a significant 61.1% increase compared to H1 2022. Sports revenue accounted for £770m (73.2%), while gaming revenue amounted to £281m. On the other hand, revenue in the UK and Ireland totaled £1.09bn, displaying a decline of 3.7%. Online operations represented £956m, while retail contributed £136m. The breakdown of this revenue included £630m in sports revenue and £462m in gaming revenue. In the UK and Ireland, the acquisition of Tombola in January led to an 8% growth in the online segment.
Flutter’s international segment, under the leadership of PokerStars, generated £633m in revenue, experiencing a decrease of 6.9%. Of this amount, £106m originated from sports revenue and £527m from gaming revenue. In Australia, total revenue rose by 4.6% to reach £612m.
Costs of sales rose by 22.0% year-on-year to £1.32bn. The operating profit amounted to £2.03bn, reflecting a 4.7% increase compared to H1 2021. After deducting sales and marketing costs of £819m, the profit stood at £1.21bn. Additional operating costs of £686m and corporate costs of £55m resulted in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £476m, a decrease of 20.2% year-on-year. The decline in EBITDA can be primarily attributed to higher operating costs compared to the previous year. Depreciation and amortization costs were £143m. After considering finance expenses and taxation, the net profit for the year totaled £177m, indicating a decrease of 42.3%.
During the half-year, Flutter’s PokerStars brand launched in Ontario. The company also made several key appointments, including Kate Delahunty as the corporate communications lead in March, Carolan Lennon (CEO of Salesforce Ireland) joining the Flutter board in April, and the appointment of Tricia Alcamo as Flutter’s newest chief people officer.
Following the release of these results, Flutter’s share price experienced significant growth. At the time of writing, the share price was £105.45, a more than 10% increase from the previous day’s closing price of £93.84.
