FanDuel owner Flutter Entertainment reported favorable growth in the company’s latest earnings report as it continues to expand its reach in U.S. media and gaming.
The Ireland-based gaming giant generated $3.2 billion in revenue in Q3 2024, up from $2.5 million for the same period last year. Its adjusted EBITDA reached $450 million during the quarter. By comparison, Flutter’s adjusted EBITDA in Q3 2023 closed at $258 million.
Flutter improved its net loss in Q3 2024 with the company reporting a $114 million loss during the quarter compared to $262 million for the same period last year.
FanDuel continues to grow
Flutter also reported considerable growth for its U.S. business, FanDuel. In Q3 2024, FanDuel’s iGaming and sports betting operations reported 3.2 million average monthly players, a 28% increase year-over-year. FanDuel saw its total new customer acquisition figure grow by 10% during the quarter compared to the same period last year.
Revenue for FanDuel reached $1.2 billion in Q3 2024, a 51% uptick year-over-year. Its adjusted EBITDA closed at $58 million in Q3 compared to a loss of $55 million in Q3 2023.
FanDuel attributed the growth to new market launches and the start of the NFL season, which has been enhanced with new product features. Its new innovative features include animated scoreboards and expanded prop markets, including the debut of Your Way.
The Your Way product, which was tested in two states, offers customizable betting options.
“These product improvements are driving both customer engagement and volumes and are contributing to continued structural revenue margin expansion year-over-year,” said Flutter CEO Peter Jackson during the company’s third-quarter earnings call this week.
As of Q3 2024, FanDuel Sportsbook holds a gross gaming revenue market share of 41% while FanDuel Casino closed the quarter with a gaming revenue market share of 25%.
FanDuel expects to gain market access in Alberta in Q2 with a projected launch in Missouri by the end of the next fiscal year. FanDuel is expected to launch sports wagering in the Show Me State in 2025 after Amendment 2 was passed by a 7,486 voting margin. Missouri can award up to 22 licenses to operators with a proposed tax rate of 10%.
“We were very pleased it was passed,” added Jackson. “There was some reasonably strong opposition at one point to the amendment. So, we were delighted to get it over the line.”
Flutter expands its US media presence
Flutter has also bolstered its reach through a new long-term commercial partnership.
Last month, FanDuel reached a deal with Diamond Sports for the exclusive right to name the media company’s regional sports networks. The deal saw FanDuel secure the naming rights to Diamond’s portfolio of 16 RSNs that provide FanDuel with access to new markets.
FanDuel has also acquired the rights to resell Diamond’s direct-to-consumer product, which has been rebranded as FanDuel Sports Network. The DTC product provides FanDuel with linear and digital media placements for NBA, NHL and MLB competitions.
FanDuel has also gained the right to resell Diamond’s streaming service to customers.
“We thought it’s an interesting opportunity to get involved in,” continued Jackson. “It gives us access to some certain assets that we would have not previously been able to look at.”
Diamond offloaded its RSN to FanDuel after filing for Chapter 11 protection in 2023 after missing payments on its debt, including a $140 million missed interest payment. Terms of its deal with FanDuel have not been disclosed but Diamond will receive a rights fee payment. Diamond will also profit from existing media and advertising commitments.
