Flutter Entertainment Reports Strong Q2 Growth
Flutter Entertainment Plc has reported a strong financial performance for the second quarter of 2024, with a 20% increase in revenue, bringing in $3.6 billion. This growth was predominantly fueled by the impressive performance of its FanDuel brand in the United States, which saw a nearly 40% surge in revenue.
FanDuel’s Leadership in the U.S. Market
FanDuel, Flutter’s flagship brand in the U.S., continued to solidify its dominance in the highly competitive American market. The brand reported a 27% year-over-year increase in active monthly players, reaching 3.5 million. This growth was a key driver behind the 39% rise in U.S. income, which totaled $1.52 billion for the quarter, up from $1.1 billion in the same period last year.
The operator also saw a significant 51% increase in adjusted EBITDA, which rose to $260 million, with an adjusted EBITDA margin improving to 17%. CEO Peter Jackson attributed this success to FanDuel’s disciplined approach to customer acquisition and its best-in-class product offerings, which have helped the brand capture substantial market share.
FanDuel now commands 38% of the U.S. online gross gaming revenue (GGR) market, including a 47% share in sportsbook GGR, 51% in net gaming revenue (NGR), and 25% in iGaming GGR. The migration of FanDuel Casino to proprietary systems has further bolstered its iGaming offerings, contributing $357 million to Q2 revenues.
In new markets like North Carolina, FanDuel made a strong entry, achieving a 59% NGR share in Q2. The brand also reported significant revenue increases across markets launched in recent years, reflecting its growing influence and effectiveness in capitalizing on emerging opportunities.
Strategic Positioning and Competitive Landscape
Beyond the U.S., Flutter Entertainment’s global operations also reported strong results. The company’s UK & Ireland division posted Q2 revenues of $928 million, marking an 18% increase from the $789 million recorded in the previous year. This growth was driven by innovative offerings like Sky Bet’s QuickBuild feature and Paddy Power’s Super Sub, which helped boost sportsbook revenues by 12%, reaching $451 million.
The division also saw a 25% rise in iGaming revenues, totaling $423 million, benefiting from effective cross-sell strategies across its diverse portfolio. The UK & Ireland unit contributed the highest adjusted EBITDA to the group, amounting to £293 million, with an operating margin of 31.6%.
Flutter’s overall Q2 performance was strong, with corporate revenues climbing to $3.6 billion, a 20% increase from $3 billion in Q2 2023. The company’s net profits surged to $297 million, up from $64 million in the previous year, despite non-cash impacts such as amortization of acquired intangibles and fair value adjustments.
Looking forward, Flutter has increased its U.S. revenue guidance by 3% to $6.2 billion, with an adjusted EBITDA projection raised by 4% to $740 million.
