CasinoBeats delves into the statistics behind the most interesting stories in the gaming industry every week. This week, the roundup includes more Q1 numbers from Flutter and IGT, as well as a plea for safer gambling messages in UK.
$3.4bn
Flutter published its Q1 2024 financial results, citing a 16 percent revenue increase to $3.4 billion (Q1 2020: $2.9 billion), due to the continued growth in its US business as well as strong momentum for igaming in UK and Ireland.
The average monthly player also increased by 11%, to reach 13,7m (2012: 12,3m). The group’s revenue, excluding US operations (which was $1.8bn in 2023), increased by 8 per cent over the past year to $2bn.
Flutter, despite achieving revenue growth, reported a quarterly net loss of $177m. This is 59 percent lower than the $111m for the same quarter last year.
The Group’s adjusted EBITDA in Q1 increased by 46 percent YoY, to $514m (in 2023 it was $352m), with a margin at 15,1 per cent (2023 is 12.1)
US adjusted EBITDA increased to $26m in 2023 (a $53m loss), with margins driven by revenue growth, margin expansion and operating leverage. This was despite continuing disciplined investment into player acquisition.
Ex-US adjusted EBITDA increased by 20% to $488m (2010: $406m), mainly due to the increase in revenue, and the adjusted EBITDA ratio. This was mainly driven by the sales and marketing lever, and an one-off credit resulting from the settlements of historical litigation.
After a positive conversion of operational results into cash, and YOY movements in US players’ deposits, the net cash generated by operating activities increased to $337m (in 2023 it was $49m).
Total debt dropped to $6.8bn and net debt was $5.7bn.
Peter Jackson commented on Flutter’s excellent year-to-date performance: FanDuel is gaining market share and growing its EBITDA in the US. “We are focused on expanding our player base and market share as well as embedding profits into our business by investing in a disciplined manner.”
$67m
SkyCity Adelaide and Australian Transaction Reports and Analysis Centre filed joint submissions to the Federal Court of Australia proposing that the casino be fined $67m for its violation of Anti-Money Laundering and Counter-Terrorism Financing Act 2006
SkyCity, in reaching an agreement with the FBI, admitted to violating two sections of AML/CTF Act.
- The AML/CTF Act, AML/CTF Rules and Section 81 of its AML/CTF programs did not comply with the AML/CTF Act.
- It failed to perform appropriate due diligence on certain customers at higher risk and those who transacted through high-risk channels.
When the case is heard on June 7, Justice Le will examine the proposed settlement agreement between SkyCity AUSTRAC and SkyCity.
The court has the final word on what penalty should be given.
AUSTRAC CEO Brendan Thomas commented that “AUSTRAC has taken this action because it was concerned that SkyCity had allowed a number of practices, behaviors and customer relations that were high risk to be unchecked over a long period of time.”
34%
Codere Online reported a Q1 revenue total of EUR50.4m, and a NGR of EUR53m. This is compared to Q1 2023 (EUR39.5m). Growth was seen across all areas.
The average monthly active player during this period increased 16 percent YoY to 143.200 (2012: 123.900). This was driven by marketing campaigns in Mexico and Spain.
The adjusted EBITDA of the third quarter was EUR1.7m which is an improvement over the EUR3.1m losses reported in the same period the previous year.
Mexico grew by the largest amount of revenue by 51% YoY, to EUR26,6m (in 2023, EUR18,4m). Its average number of active monthly players also increased by 26% to 62,500 in 2023, from 49,600.
Spain’s revenue has increased 21 percent YoY, to EUR22.3m (in 2023 it was EUR18.4m). Its average number of active monthly players is up 24 percent to 50,000.
The other revenue was EUR4.1m (up 17 percent YoY, 2023: EUR3.5m). The average number of active monthly players has declined to 30,600 from 34,200 (2023).
Aviv Sher , the CEO of, commented on the results: “We have a great start to 2024 with a net gaming revenue in the first three months of EUR53m, which is 34 percent higher than the previous year, and our best ever quarter figure.
Our focus on Mexico continues to produce impressive results. Net gaming revenues in Mexico grew by 51% in the first three months to almost EUR27m. Net gaming revenues in Spain grew 21 percent to more than EUR22m.
Our targeted marketing activities allowed us to increase our active customers by approximately 25 percent in both markets as a direct result of acquiring higher-quality clients (i.e. Lower churn, but with increased spending per active.
7,000
GambleAware called for the inclusion of evidence-based warnings on gambling advertisements in UK after researching current inadequate gambling messages.
After a survey of over 7,000 respondents, the gambling harm prevention charity has called for “more persuasive” messages about safer gambling.
The report questioned the efficacy of the industry’s safer gambling slogan, “Take Time To think”.
This study identified three health warnings which could be better than TTTT. They aim to be a ‘clearer and more powerful message’ for the public, as well as gambling addicts.
According to the report, 46 percent of gambling people found it more compelling than 35 percent for the TTTT.
In contrast, only 12 percent of respondents supported TTTT.
According to reports, the third and last suggestion, “gambling can grab anyone”, also scored well on all metrics.
This research, conducted by the specialist communication agency YouGov as well as The Outsiders , included qualitative research.
Research revealed that TTTT fails’ to identify the dangers of gambling’ and also fails to indicate where to find assistance for gambling-related harm issues.
Alexia Clifford is Chief Communications Officer at GambleAware. She said, “Gambling harms pose a serious issue for public health, and people must be aware of these risks.” The landmark study released today highlights the importance of replacing the industry slogan “Take Time to Think” with more persuasive health warnings.
We’re concerned that operators are misusing the GambleAware Logo and there is no clear indication of support channels. “We urge the industry to heed the increasing body of evidence that highlights the need for improved safeguards and regulations.”
$1.07bn
IGT announced group revenues of $1.07bn in the first quarter 2024. This is an increase of one percent compared to Q1 2023 ($1.06bn). The timing of Gaming and Digital products sales offset the strong Global Lottery revenue growth.
Gaming and Digital revenues fell seven percent year-over year to $436m in 2023, due to lower sales of products. “There were fewer terminal units shipped in the current fiscal year as well as higher intellectual property and licenses last year. This was partially offset by a rise in service revenue, driven by the growth in global installed bases, which offsets lower yields, and an increase in igaming income by 10 percent.”
Global Lottery Revenue grew by 6 per cent to $661m in 2023 from $624m, mainly due to higher sales of products. This was primarily driven by “gameTouch 28 terminals delivered in Canada as well as software upgrades implemented in Germany and Singapore” and by continued sales in Italy.
IGT’s Q1 operating profit was $256m, the same as the prior year. (2023: $255m). The margin for the quarter (2023 : 24.1%) was the same. Operating income, excluding separation and divestiture expenses, increased seven percent to $273m at a record margin of 25.6%.
Gaming and Digital Operating Income dropped three percent to $81m (2013: $83m). Research and Development Process Gains and the easing of Supply Chain Costs were offset by lower revenues and increased investments.
Global Lottery Operating Income increased by 8 per cent to $258m (2023, $240m), mainly due to strong Italy Same-Store Sales and higher Product Sale Margin. Corporate Support and Other Expenses were $83m in 2023 (compared to $68m), due to $18m of separation and divestiture expenses.
At the end of quarter, the group’s EBITDA adjusted stood at $443m (in 2023 it was $449m). The margin for the EBITDA adjustment at that time was 41.5% (2023 42.3%). Separation and divestiture expenses were excluded, resulting in an adjusted EBITDA of $461m at a margin 43.1 percent.
IGT’s net debt was unchanged at $5.2bn, while its free cash flow dropped by 86% YoY.
IGT’s CFO, Max Chira stated that the company had achieved a record-breaking organic profit in its first quarter.
The company operates from a strong position with historically low net leverage, plenty of liquidity and manageable short-term debt maturity dates.
