Flutter Expects to be Profitable in 2023 with FanDuel
Flutter Entertainment is an international gaming conglomerate that consists of many successful gaming operators. Alongside FanDuel, Flutter is also the parent company of these US brands: FOX Bet, TVG, PokerStars, and Stardust. Flutter Entertainment is predicting a very successful 2023 thanks to its 2022 Q3 results. The company announced that its US division has generated $700 million in revenue, increasing by 82% from this time in 2021.
Flutter CEO Peter Jackson shared his thoughts on the results: “We are really pleased with our performance in our US division since the start of the NFL in September where we are now averaging over one million players on a regular NFL Sunday,”
“In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season.
“The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.”
FanDuel’s Achievements and Goals
FanDuel has recently been the subject of many discussions in the gambling world. FanDuel continued to prove itself as America’s top online sportsbook this year. It holds a 42% market share in the states it is legal in and was named the 2022 Sportsbook of the Year by the American Gambling Awards.
FanDuel is currently available in New Jersey, Colorado, Illinois, Indiana, Tennessee, Virginia, Michigan, Arizona, Connecticut, New York, Louisiana, Wyoming, Kansas, and most recently Maryland just last month. The company has plans to launch in Ohio and Massachusetts within the next 6 months. While new state launches can be unpredictable, FanDuel experienced great success in its New York launch, acquiring 400,000 new sports betting customers. The company explains that its hefty promotional and marketing expenses of $1 billion are offset by the large number of new players who join. Flutter explained this by revisiting results in previous years “This results in bigger initial losses in the early months [following] a state launch, as we acquire more customers…However, when combined with better retention rates and our product mix advantages, we now expect new states to generate positive contribution after 12-to-24 months post-launch, in contrast to the 18-to-30 month guidance we provided in 2019.”
Other companies share revenue updates in smaller increments, but Flutter believes that understanding the fuller scope is more possible when it shares the year’s progress.
“We’ve always been consistent about how we talk about this [profit] and it includes the cost of any state launches and is calculated after share-based payments.
“It’s a proper EBITDA measurement of profitability of the entirety of the P&L, so hopefully, that’s really clear.
“We’ve explained it is for the full-year financial results and a 12-month period, as opposed to a month, a quarter, or a third Thursday in November. Just to be clear, it’s for the full-year period,”
On November 16, FanDuel held an investor day hosted by CEO Amy Howe. Howe shared that Fanduel’s year revenue guidance had risen from $2.95 billion to $3.2 billion. She also estimated that the overall US sports betting industry will be up to $40.5 billion by 2030.
“We do believe that we’ll be on that high end of the range – five times,” said Howe.
FanDuel was hard at work this year. Flutter Entertainment has a lot to look forward to in 2023.
Mac Daniel is a Michigan native and freelance writer for PlayOnlineCasino and PlayOnlineSportsBetting. He has experience writing about a wide variety of topics, including healthcare, tourism, non-profit organizations, and most recently casino and sportsbetting news. To check out more of his work, visit: playonlinemichigan.com