Flutter Entertainment has highlighted the ongoing US expansion and an increase courtesy of the Tombola purchase. These are key components that have helped propel the company forward over the past year.
Peter Jackson, Chief Executive, published a 2022 performance update. He praised a “strong performance” because the operator continued to “execute on the strategic priorities that we set last March”.
The adjusted group revenue for the twelve months rose 27 percent to PS7.69m (2021 – PS6m). This was driven by the above factors. There were also increases in gaming of 28% to PS2.9bn (2021 : PS2.22bn), and sports betting of 27% to PS4.78m (21 : PS3.77m).
Group-wide net profit fell 26 percent to PS305m (2021 : PS412m), after the PS608m charge to amortize acquired intangibles. Adjusted EBITDA rose four percentage points to PS1.04bn (2021 : PS1bn). The average monthly player increased 26 percent to 10,245 (21: 8,146).
The US saw an 87% increase in overall revenue to PS2.6bn (2021 : PS1.39bn), with both online casino and sports betting closing up at 50 percent and 103% respectively to PS619m (2021 : PS413m and PS1.98bn 2021 : PS978m).
This will allow for expansion into New York and Louisiana, Wyoming, Kansas, and Maryland on a sportsbook model. There will also be a boost in gaming momentum due to a focus on acquiring direct customers, a broader product portfolio, and a new FanDueligaming strategy.
Jackson stated, “We have an unrivalled number one position in America where we continue our strength to strength.”
“The combination of the FanDuel Advantage and the Flutter Edge’ resulted in our most successful launches in Maryland and Ohio to date. We had a record Super Bowl, and we have so far acquired more than 1.2 million customers through FanDuel’s number one brand.
“The group is at an earnings transformation point, with our combined US business on track for a positive EBITDA in 2023 for first time.
The operator maintained its North American presence and expressed a preliminary view that Flutter’s ordinary shares could be listed in the USA. This would provide a number long-term capital market and strategic benefits.
Jackson confirmed that the group had “begun an extensive consult with our shareholders and early feedback was supportive”, with results to be published once we have completed an extensive program for engagement with our investors, and stakeholders.
The overall revenue from the UK and Ireland rose four percent to PS2.14bn (2021 – PS2.06bn), while Australia fell two percentage points to PS1.26bn (2021 – PS1.29bn), while international sales increased 31% to PS1.68bn (2021 – PS1.28bn).
Jackson said, “Outside the USA we have been satisfied with the performance of business as we faced into regulation changes and challenging comparatives.
“We are in a good position to maintain gold medal positions in mature markets, while we are also delivering strong growth in attractive high-growth markets. We are excited to have Sisal, Italy’s number one operator, in our brand portfolio. Our integration strategy is progressing well.
Flutter also pointed out that the tradition of the first eight weeks in 2023 was “in line with expectations”, with the US division showing “strong growth” thanks to the “very successful launches” in Maryland and Ohio.
The firm stated that the UK and Ireland have maintained a strong momentum, while international segments have helped to offset the “more challenging environment” and “tough comparatives” in Australia.
The group anticipates 2023 capital expenditures of PS480m to PS500m (2022 report: PS403m); a group adjusted deduction and amortization charge of approximately PS480m (2022 report: PS370m); this is due to increased investment in US product,casino and shared platforms.
Jackson said, “2023 is off on a pleasant start, driven by positive momentum since the end of last Year,” Jackson concluded.
“With the combined US business on track for a positive EBITDA in 2023, the group is at an earnings’ transformation stage. We look forward to future growth and advancing against Flutter’s strategic priorities for the next year.