Flutter Entertainment Q4 Trading Update: Company Sees 33% Growth in Users, 53% Growth in Sportsbook Stakes
Flutter Entertainment — the parent company of major gaming brands such as FanDuel and PokerStars — released its quarterly trading update for the three month period ending in December 31, 2023 (Q4). In Q4, the company saw revenue from sports betting activities increase by 15% and revenue from gaming activities increase by 19% on a year-over-year basis.
Flutter Earnings Grow in Q4
| Segment | Q4 of 2023 | Q4 of 2022 | YoY% |
|---|---|---|---|
| Average Monthly Players ('000s) | 13,588 | 12,114 | +12% |
| Sports Revenue | 1,655 | 1,527 | +8% |
| Gaming Revenue | 1,016 | 887 | +15% |
| Total Revenue | 2,671 | 2,414 | +11% |
IN addition to net growth in each of their core segments, Flutter also increased their sports gross revenue share in the U.S. from 40% in Q3 to 43% in Q4. Flutter’s preeminent brand in the United State is FanDuel Sportsbook, which remains the country’s No. 1 sportsbook platform in terms of both gross and net revenue share.
Sportsbook operators across the U.S. generally see a rise in handle metrics during Q4 largely due to the popularity of betting on the NFL. This is reflected in Flutter’s trading update, which indicates that the company experienced a 33% increase in average monthly players and a 53% increase in sportsbook stakes from Q4 of 2022 to Q4 of 2023.
While on the surface these metrics indicate a strong quarter for the gaming giant, top brass at Flutter believe the company could have seen greater margins had the sportsbook’s hold rate — i.e., the amount of money a sportsbook keeps in revenue divided by the amount of money they pay out to customers — been closer to what they were anticipating.
Flutter Entertainment Chief Executive Peter Jackson commented:
“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.”
As Jackson alluded to, consumer-friendly results in sports betting markets were somewhat mitigated by a 26% growth in iGaming revenue. As more U.S. states look to legalize online casinos — namely, New York — this segment will undoubtedly be a focus for Flutter moving forward.
Super Bowl, North Carolina Key in Q1
Though Q4 typically yields the largest revenue numbers for Flutter’s sports segment, Q1 is usually the second largest.
Between the Super Bowl and the start of March Madness, Flutter stands to gain significant praise from investors if they are able to maintain their position as the top sportsbook brand over DraftKings — the second largest online sports betting platform.
Their ability to do so over the next three months may ultimately hinge on FanDuel’s performance in the North Carolina sports betting market. The ninth largest U.S. state by population, North Carolina is expected to launch online sports betting before the 2024 March Madness tournament.
It is worth noting that there is still a chance that North Carolina will wait until Q2 to go live as no formal launch date has been set.
Flutter to be Listed on the NYSE in 2024
On Jan. 29, 2024, Flutter Entertainment (FLTR) is slated to make the move from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE). Thus, Q1 of 2023 will be the company’s first quarter as a listing on the largest exchange in the world.
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