Flutter Entertainment generates nearly $400m in Q1 US revenue

Image source: FanDuel Group

Flutter Entertainment, owner of the FanDuel Group, has published its Q1 trading update this week, citing a strong start for the firm in 2021 with growth achieved in both sports and gaming revenue. It’s US business generated nearly $400m in revenue during the quarter.

The headline figures reveal a welcome return to form. Sports revenue for the quarter came in at $1.3bn (2020: $875.3m), with gaming revenue of $822.2m (2020: $695.2m). Total revenue for the three months was $2.1bn (2020: $1.6bn).

Chief Executive Peter Jackson explained: “We continued to significantly grow our global player base which in turn drove a 42% increase in our online revenue. At the same time, safer gambling continues to be a key priority across our markets with new measures introduced including our Gamban partnership in the US and development of the planned Affordability Triple Step in the UK. 

“In our International division, the investment we are making to enhance player generosity and reinvigorate the PokerStars brand has seen an encouraging early response from customers. In the US, we continue to lead the market with revenue of almost $400m in the quarter. We believe that the quality and breadth of our offering remains a key differentiator for FanDuel sports and the key driver of our leadership position.” 

Jackson added that the firm’s US business had over 1.6m average monthly players in Q1, meaning that it is now twice the size of its Australian business and gaining ground on its International division. 

“We are continuing to consider our options with respect to a possible US listing of a small shareholding of FanDuel Group,” he said. “No decision has been made at this time and we will update the market as appropriate. As restrictions begin to ease and retail reopens across a number of markets, we remain confident that our diversified business leaves us well placed to deliver sustainable growth going forward.” 

Looking specifically at the US performance, Flutter lauded its rapid expansion stateside with launches in Michigan and Virginia during the quarter and “excellent ongoing momentum” in existing states.

US revenue in the quarter grew 135% to $396m. Of this, FanDuel Group accounted for 91.6% of revenue (Full Year 2020: 89.1%), with FOX Bet (including PokerStars US) accounting for 8.4%. Customer acquisition, said the firm, continues to exceed expectations with over 900,000 new customers acquired during the quarter, helped by high levels of engagement around Super Bowl and expansion into two new states. 

Flutter noted: “Our total average monthly players grew by 132% to 1.6m. We recorded a 36% share of the online sportsbook market during Q1.4 Sports revenue increased 130% in the quarter, with sportsbook 227% higher and growth across our other sports products (TVG horse racing and daily fantasy sports) of 51%. 

“Sportsbook stakes grew 235%, with our online sportsbook now available in 10 states compared to 4 in Q1 2020. Performance in these four more mature states remains very encouraging with staking growth of 93% in Q1. 

Sportsbook net revenue margin was broadly flat year on year as a 100 basis point expansion in expected margin was offset by investment in customer acquisition promotional activity. Gaming revenue increased 146% to $137m aided by the successful Michigan launch in January. 

The firm also reported that existing casino states continue to perform strongly with revenue growth of 89% in the quarter. Online gaming market share for Q1 increased to 23%, from 20% in Q4 2020.