Flutter Q4 Revenues Rise But US Business Below Expectations

Flutter Entertainment, the owner of Paddy Power, has announced a 15% increase in revenue for the last quarter of 2023. Despite this positive news, the company’s US revenues fell short of expectations due to a series of customer-friendly results. The company’s Fanduel US business experienced growth of 26%, but it was below the projected figures. Flutter Entertainment had previously forecasted full-year earnings of £1.44 billion, but due to similar results in Europe, it revised its estimate to the lower end of that range. The company is set to release its earnings figures on March 26.

Flutter Entertainment reported that its net revenue generated in the US for the fourth quarter of 2023 was £147 million below the guidance provided in November. As a result, the company anticipates a 35% flow through to adjusted earnings. However, Flutter’s revenue growth in its other main divisions, including Paddy Power, Betfair, and Sportsbet, remained in line with guidance.

Flutter Entertainment experienced significant revenue growth in its UK & Ireland Online division, with a 21% increase in the fourth quarter of 2023 compared to the previous year. The company’s UK and Ireland Retail revenue also saw a 6% increase during the same period. However, Flutter’s Australian operations saw a 9% dip in revenue, while its International revenues remained flat.

In a strategic move, Flutter Entertainment is set to delist from the Dublin Stock Exchange and instead list its shares on the New York Stock Exchange. This change is expected to take place on January 29. Additionally, the company will report its full-year results for 2023 in US dollars.

Peter Jackson, Flutter Entertainment’s chief executive, acknowledged the customer-friendly sports results, particularly in the NFL, during November. Despite this, he expressed confidence in the underlying momentum of the business heading into 2024. Jackson highlighted the strong performance in the UK & Ireland, supported by recent product enhancements, as well as international growth driven by the company’s ‘Consolidate and Invest’ markets. Flutter Entertainment aims to make its shares more accessible to US-based investors and gain access to deeper capital markets through its US listing.

“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. I am looking forward to 2024 and further building on the momentum within the Group to continue delivering growth,” said Peter Jackson, CEO of Flutter Entertainment.