Date: 09.08.2023

by Mateusz Mazur

Flutter Entertainment Reports Strong Financial Performance in H1 2023

Flutter Entertainment plc, a prominent player in the gaming and entertainment industry, has released its interim results for the first six months ending on June 30, 2023. The financial report reveals a robust performance across various metrics, showcasing substantial growth and strategic advancements.

Remarkable year-over-year growth

During the first half of 2023, Flutter achieved a remarkable £4,809 million in group revenue, marking an impressive year-over-year increase of 42% compared to H1 2022. This growth was fueled by a combination of factors, including a strong player momentum, successful strategic initiatives, and expansion into new markets.

Group EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) saw a significant upsurge, reaching £765 million in H1 2023, which represents a remarkable 76% YoY growth. The company’s operational efficiency and effective management strategies have contributed to this notable financial achievement.

The reported profit after tax for the first half of 2023 amounted to £420 million, reflecting a substantial improvement compared to the same period in the previous year, which had incurred a loss of £177 million. This positive shift in profitability underscores the effectiveness of Flutter’s operational and financial strategies.

Earnings per share (EPS) also exhibited substantial improvement, with 237.5 pence in H1 2023 compared to 97.2 pence in H1 2022. This robust growth in EPS is a clear indicator of the company’s enhanced financial performance and strengthened position in the market.

Flutter’s net debt at the end of the reporting period stood at £4,634 million, consistent with the figure reported at the end of December 2022. The company’s prudent financial management and disciplined approach to debt have contributed to maintaining a stable financial position.

Strategic goals and market share

Operational highlights underscore Flutter’s successful pursuit of strategic goals and its focus on growth. Average monthly players (AMPs) experienced a substantial increase of 28%, with particularly strong growth driven by the US market, where AMPs increased by 43%. The acquisition of Sisal, which joined the Group, further bolstered this growth, leading to a pro forma AMP increase of 18%.

The US market proved to be a significant driver of Flutter’s success, reaching a profitability inflection point. FanDuel, a key player in the US division, generated an impressive £79 million ($100 million) in Adjusted EBITDA during the first half of 2023. This marked shift to profitability underscores Flutter’s growing influence and position in the US sports betting market.

Flutter’s success in the US is further demonstrated by its dominant position in the sportsbook sector, boasting a 47% market share in Q2. The company’s commitment to product excellence and sustained investment in innovation has translated into tangible market leadership.

Notably, Flutter has expanded its market share in iGaming to 23% in Q2, emphasizing its commitment to providing a comprehensive and engaging gaming experience to a diverse customer base.

The company’s presence outside the US has also contributed to its overall growth, with pro forma revenue in non-US markets showing an impressive increase of 8%, and EBITDA growing by 4%. The UK & Ireland markets reported a revenue increase of 13%, attributed to effective product enhancements and customer-centric strategies.

Flutter’s commitment to sustainability and responsible gaming is reflected in the Positive Impact Plan, which has seen positive progress. The Play Well tool has witnessed a 7 percentage point increase in usage, reaching 42%, and the company has made strides toward achieving its goal of 40% female representation in leadership roles by 2026.

Looking ahead, Flutter remains focused on its strategic objectives and growth initiatives. The company aims to continue its positive trajectory, delivering value to its shareholders and solidifying its position as a leader in the gaming and entertainment industry. With plans for a US listing in late 2023 or early 2024, Flutter is poised to further expand its reach and capitalize on its current momentum.