Flutter Entertainment’s Q1 Performance Helped By US Business
Flutter Entertainment’s Q1 Performance Helped By US Business
Flutter Entertainment has announced its financial results for the first quarter of the year. The company reported growth in revenue and earnings, particularly in its U.S. operations, which have become a focal point for its overall strategy.
Flutter Entertainment’s Q1 results showed a strong financial performance, with group revenue reaching approximately $3.66 billion. This figure represents an 8% increase compared to the same period last year. The adjusted EBITDA stood at $616 million, marking a remarkable 20% year-over-year growth. Additionally, the company reported a net income of $335 million, an increase of 289% from the previous year.
Key Financial Metrics
| Metric | Q1 2023 | Q1 2022 | Year-over-Year Change |
|---|---|---|---|
| Group Revenue | $3.66 billion | $3.39 billion | +8% |
| Adjusted EBITDA | $616 million | $513 million | +20% |
| Net Income | $335 million | $86 million | +289% |
| Average Monthly Players (AMPs) | 14,880 | 13,750 | +8% |
| Adjusted EPS | $1.59 | $1.05 | +51% |
Despite these figures, Flutter’s revenue and earnings per share fell short of market expectations, which had forecasted $3.96 billion in revenue and $2.05 in EPS. Consequently, the company’s stock experienced a slight decline, closing at $242.36, down 1%.
U.S. Market Performance
Flutter’s U.S. operations, primarily driven by its subsidiary FanDuel, have been a significant contributor to the company’s overall growth. The U.S. segment reported a 18% increase in revenue, totaling $1.66 billion. Adjusted EBITDA for this segment soared to $161 million, reflecting a fivefold increase compared to the previous year.
In U.S. sports betting and iGaming, Flutter has managed to secure substantial market shares:
International Operations
While Flutter’s U.S. business has gained the most attention, its international operations also demonstrated resilience. The company reported just under $2 billion in international revenue, reflecting a modest 1% increase year-over-year. However, adjusted EBITDA for this segment decreased by 1% to $518 million.
Regional Performance Breakdown
CEO Peter Jackson
Peter Jackson, CEO, commented: “I am pleased with the performance of the business during the first quarter, with the scaling of our US business driving a step change in the earnings profile of the Group.
FanDuel continues to win in the US, retaining leadership positions in both online sports betting and iGaming, while we saw a positive performance within International, where our scale and the
competitive advantages of our Flutter Edge have been enhanced by the acquisition of Snai in Italy.
We are delivering against our strategic priorities, with clear optionality as an ‘and’ business that can create significant value through a combination of organic growth, accretive M&A, and returns to shareholders. The global regulated market opportunity is significant, and Flutter remains uniquely positioned to win.”
