FanDuel is continuing to drive profits for Flutter Entertainment according to the company’s latest earnings report.
Flutter, which owns FanDuel, Paddy Power, and Betfair, generated $3.4 billion in revenue in Q1 2024, a 16% increase year-over-year. The gaming giant saw its portfolio of brands average 13.7 million monthly players during the quarter, up 11% compared to Q1 2023. Its adjusted EBITDA also improved to $514 million in Q1 2024, a 46% uptick year-over-year.
Despite the revenue growth, Flutter missed Wall Street analyst estimates by $160 million.
The company also reported a net loss of $177 million in Q1 2024, a 59% increase compared to the same period last year. The uptick is attributed to the decision to close sports betting platform FOX Bet. In 2019, Flutter partnered with The Stars Group to launch FOX Bet. A year later, Flutter acquired the Stars Group in a deal valued at $6 billion.
Last August, Flutter closed FOX Bet, which had offered wagering in four states. At the time, FOX held an option to acquire an 18.6% stake in FanDuel and a 2.5% share in Flutter.
FOX filed a suit in 2021 against Flutter over exercising its option to acquire the FanDuel stake. FOX was seeking the same share price in FanDuel as Flutter had previously paid.
FanDuel leads the way for Flutter
Flutter’s results in Q1 2024 were spearheaded by the company’s U.S. business, FanDuel. The sports betting, DFS, and iGaming operator posted $1.4 billion in revenue during the quarter, up from $1 billion in Q1 2023. Its sportsbook reported a 52% online net gaming revenue market share in Q4 2024 while FanDuel Casino was the top iGaming brand. The product posted a 27% iGaming gross gaming revenue share in Q1, up 4% year-over-year.
FanDuel reported growth in Q1 2024 behind strong interest in the Super Bowl and new market launches in Vermont and North Carolina. In January, the Vermont Department of Liquor and Lottery granted market access to FanDuel, Fanatics Sportsbook, and DraftKings with each operator paying a $500,000 fee to launch operations in the state.
A month later, FanDuel posted historic results following Super Bowl LVIII between the San Francisco 49ers and Kansas City Chiefs. FanDuel reported a record 2.6 million players for the Big Game, which helped its average monthly players grow by 15% in Q1.
FanDuel continued to grow during the quarter with its launch in the Tar Heel State. North Carolina went live with sports betting on March 11 with eight online and retail sportsbooks. Within the first 45 days of regulated wagering, FanDuel saw 5.3% of the adult population sign up for its product, making it one of the operator’s most successful launches to date.
Flutter projects full-year U.S. revenue to range between $5.8 billion and $6.2 billion.
