With an eye toward launching two new North American wagering markets in 2025, Flutter Entertainment today (12 November) released “excellent Q3” results around the world.
During the third-quarter earnings call, Flutter CEO Peter Jackson opened by calling the quarter “very strong for the group and once again ahead of market expectations”. The headline number is a 74% increase in EBITDA to $450 million (£353.3 million/€423.9 million). It showed a $58 million profit in the US. The company also raised guidance on revenue and EBITDA by 1%.
According to its financial results, Flutter did have a net loss of $114 million for the quarter, but that was a $148 million year-over-year improvement. Combined core profit in Australia, Britain and across Europe were up 24%. Flutter is live around the world in sports betting and igaming.
During his opening remarks, Jackson led with growth by FanDuel in the US, saying that since the start of the NFL season, the company has seen “peak wagers per minute already higher than Super Bowl LVII”.
He also pointed to the passage of the Missouri sports betting initiative as a positive. Jackson said the company is looking toward launching in Alberta, Canada in the first quarter of 2025 and Missouri by the fourth quarter. Alberta regulators have been working on regulations for months and at one point stakeholders were hoping for a late 2024 launch. But it appears that will pushed into 2025.
Missouri, the only US state to legalise this year, must launch by 1 December 2025. Given that the state has an experienced gaming commission and existing casino market, an earlier launch is possible.
Your Way Parlay, NFL growth drivers
Beyond that, in the US, Jackson said the October purchase of the naming rights for the Diamond Sports Network gives the company “access to assets that we might not” have been able to use before and added that there have been “good integrations so far”. Jackson and CFO Rob Coldrake said they haven’t seen any key changes in Illinois since a higher tax rate there went into effect in July.
The company is continuing to gather feedback and data on its latest offering, the Your Way Parlay, which is in beta testing in Colorado and West Virginia. The new product allows bettors an “infinite” amount of customisation and experiences.
Initial reaction has been “positive”, Coldrake said.
For the overall business, the start of football season was a boon for the quarter ending 30 September. In US states that were live for sports betting before 2022, FanDuel saw 23% growth. And in states that went live in 2022 and 2023, it saw 37% growth with the start of the season.
FanDuel in Florida?
Jackson also entertained a question about the possibility of entering the Florida market. Earlier this year, Hard Rock International chairman and Seminole Gaming CEO Jim Allen said his company is open to partnerships in the state. The Seminole tribe has a monopoly on gambling, including sports betting.
Under the Indian Gaming Regulatory Act, any partner would have to pay the tribe 60% of gross revenue. In late October, the tribe announced its first partnership with a commercial operator. After years of being on opposing sides in court, West Flagler & Associates will partner with the tribe to offer digital jai alai betting.
Flutter recognises “the supreme court’s decision and tribal sovereignty”, said Jackson, who pointed out that his company is an associate member of the Indian Gaming Association. “And we will continue to explore pathways in Florida and other tribal states, but it would be premature to say what that might be.”
In the bigger picture, Flutter is planning to begin a new stock buyback programme on 14 November. That announcement came during its investor day on 25 September in New York. Jackson said “making investments in the company” serves to make its belief in the future clear. Flutter will buy back up to $5 billion worth of shares.
“Excited to take advantage” of Brazil
Executives entertained questions about other parts of the world, including Australia, Brazil, Italy and the UK and Ireland (UKI). Many eyes are on Brazil, which is aiming to launch legal sports betting on 1 January 2025, although the regulatory and legislative process has not moved as quickly or smoothly as many stakeholders hoped.
Coldrake said Flutter is planning for a 1 January launch, but “there are various regulator challenges there at the moment. We are confident with the progress we have made in Brazil… and we’re excited to take advantage of what we think is a really exiting market with a lot of opportunity.”
In September Flutter bought a 56% stake in Betnacional parent NSX Group and with it became one of the country’s top three wagering companies. Along with its Betfair product, Flutter has 11% market share. With the NSX purchase, Flutter continued its M&A strategy of buying existing, successful companies that it gives a lift to, but keeps mostly under existing or local management.
In Australia, Jackson pointed to growth of its SportsBet product, while in Italy he said the Sisal integration is driving growth. Flutter added to its Italian footprint in September, when it bought wagering operator Snai from Playtech. In the UK&I, Jackson said a bigger and richer range of products in sports betting and igaming are drivers of both player and revenue growth.
