Flutter loses out on US football results, but shares soar
The business said that ‘customer friendly’ sports results had cost it £270 million in the US in the fourth quarter.
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Your support makes all the difference.Betting giant Flutter said that it had lost out on American football in November, but said that it had managed to grow revenue by more than a quarter in the last three months of 2023.
The Paddy Power and Betfair owner said that it had met expectations outside the US, but that National Football League (NFL) games had gone the way of customers, costing its bottom line.
In industry parlance, the “customer friendly” results from sports in the fourth quarter of the year hit revenue by 343 million dollars (£270 million), Flutter said. This was largely mitigated by better margins.
As a result, US net revenue was significantly below previous guidance.
Yet the business still managed to grow strongly. Revenue was up 26% in the period as a whole, and even the US business managed to grow by nearly a fifth.
While sports results were very customer friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024
Across the year as a whole total revenue was up 24%, and the US part of the business grew 38% to £3.60 billion.
In the UK and Ireland revenue was up 15% to £2.46 billion. Only the Australian business, which is less than half the size of the UK business, shrank during the year.
Chief executive Peter Jackson said: “The group traded well in the fourth quarter underpinned by our leading local brands supported by global Flutter Edge advantages.
“In the US, FanDuel consolidated its sports leadership position during the peak quarter for sporting activity, while FanDuel Casino went from strength to strength.
“While sports results were very customer friendly, particularly on the NFL in November, the underlying momentum in the business remains very strong heading into 2024.”
Mr Jackson said that the company’s plans to list in the US at the end of the month are still going to plan.
“We are very excited that the addition of a US Flutter listing is now just days away. This is a pivotal moment for the group as we make Flutter more accessible to US-based investors and gain access to deeper capital markets.”
Shares in the company rose 11% on Thursday morning.