Paddy Power owner Flutter expects 30pc rise in 2024 earnings driven by US market growth

Flutter Entertainment saw revenues rise by 24.6pc in 2023 as the company reported a rise in monthly customers, as well as a strong US performance.

Group revenue was $11.8bn (€10.9bn) last year, while average monthly players increased by 20.3pc in the same period, rising to over 12.3 million.

The betting giant also reported a net loss of $1.2bn (€1.1bn) in 2023.

This followed a number of non-cash charges in 2023, including a $725m PokerStars trademark impairment, $791m acquired intangibles amortisation and $165m change in the fair value of Fox Option liability.

This relates to Fox Corporation’s option to acquire an 18.6pc equity interest in the FanDuel brand from Flutter until 2030, which is treated as a liability.

Revenues at Flutter’s US division soared by 40.7pc year-on-year to $4.5bn, driven by FanDuel performance despite customer friendly sports results.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) for the US market was $65m, rising from a loss of $347m in 2022.

Excluding the US market, revenues were up 16.4pc year-on-year.

UK and Ireland revenues grew 14.4pc as the number of recreational customers increased across both retail and online channels. Adjusted Ebitda increased by 16pc to $888m, the Paddy Power owner reported.

“As anticipated, our number one position in the US has transformed the group’s earnings profile during 2023 as FanDuel delivered a positive US full year Adjusted Ebitda for the first time,” chief executive Peter Jackson said.

He added that 2024 started with “strong momentum.”

Group revenue has risen 23.4pc from January 1 to March 17 compared to the corresponding period in 2023, while US revenue has jumped 55.6pc in this period.

The betting giant now anticipates group revenue growth of 17.5pc, while further adjusted Ebitda – adjusted Ebitda excluding share-based compensation – is expected to jump 30.2pc in the current financial year.

Flutter shares also traded for the first time on the New York Stock Exchange (NYSE) on January 29.

"We have been encouraged by the increased focus from new US investors as a result of our US listing,” Mr Jackson said, adding that the group is now working towards a shareholder vote on May 1 to approve a primary listing move to the NYSE.

The group’s board said in January that it would intend to retain Flutter’s remaining UK listing as a secondary listing following the transition to a primary US listing.

Reporting On:independent.ie