The comments during Flutter’s earnings call for the first half of 2022 highlighted the profitability of its FanDuel brand in Q2. Flutter’s CEO, Jackson, emphasized that their businesses in the UK and Australia had surpassed regulations, even with the introduction of point-of-consumption taxes. Despite the short-term negative impact, these challenges made Flutter brands stronger in the long term by allowing them to mitigate the impacts through operational efficiencies and market share gains as smaller operators were forced to exit the market.
Flutter’s proactive steps in preparation for the post-white paper market include focusing more on recreational customers. Currently, 43% of its UK and Ireland customers fall into the most recreational tier, while only 5% belong to the highest tier. Additionally, Flutter has implemented safer gambling measures such as deposit limits for under-25s, with these checks costing the business £48m in H1. Jackson believes these changes will position Flutter well for the review.
While discussing the success of the US business and remaining optimistic about the UK, Jackson also mentioned recent acquisitions made by Flutter and the opportunities they present for new markets. The acquisition of Sisal, with its presence in Italy and diversification into the lottery space, aligns with Flutter’s acquisition goals. Furthermore, Jackson highlighted the performance of India-facing rummy operator Junglee during the period.
Commenting on Flutter’s H1 results, Jackson specifically noted the outstanding performance of FanDuel in the US. Despite other businesses reducing marketing spend to approach profitability, FanDuel continued to allocate resources to player acquisition. In Q2 alone, they acquired over half a million new customers, demonstrating positive customer economics. Looking ahead, Jackson anticipates that FanDuel will achieve profitability on a full-year basis for the first time in the 2023 calendar year if online betting does not launch in California.
