Flutter Investor Day: gambling giant outlines plans for global growth
Flutter has set its international focus on Latin America, India and Central and Eastern Europe.
US.- Flutter has outlined its growth plans at its Investor Day presentation in New York. The Irish gambling giant, which owns Fan Duel, Paddy Power, Sky Bet, Sportsbet and Sisal, hailed its global success, presenting a breakdown of operations around the world.
Group CEO Peter Jackson, FanDuel CEO Amy Howe and Flutter’s UK & Ireland and international CEOs Ian Brown and Dan Taylor were just some of the directors presenting in an event that saw the company highlight the “Flutter Edge”, which it said had put it in leading positions in key markets such as the US, UK, Australia and Italy.
The Flutter Edge
Investors were told that the Flutter Edge comprises four aspects: product, technology, expertise and scale. The company said these were the key to its success.
The company also put a lot of focus on its strength in odds pricing and parlay products. It noted that from 2019 to 2023, its share of parlay bets grew by 65 per cent, with the average number of legs per parlay rising by 38 per cent.
With the US now Flutter’s biggest market, Howe estimated that FanDuel will achieve $9.7bn in revenue and adjusted EBITDA of $2.4bn by 2027. It’s GGR margin for H1 2024 was 12 per cent. Adding Canada, it expects its total addressable market in North America to hit $70bn by 2030.
Howe noted lobbying as key for more opportunities in the US, saying the company would focus on selling the economic benefits of competitive regulated gambling to California, Texas and Florida, three huge potential markets.
Meanwhile, Taylor highlighted rich international growth potential thanks to its policy of investing in “local heroes” that resonate in particular markets and backing these with its resources, tech and purchasing power. He noted that Flutter leads on market share in the UK and Ireland and Australia, while its acquisition of Snaitech from Playtech will put it into the lead in Italy too.
Flutter’s plans for developing markets
As for developing markets, Taylor highlighted Latin America, India, Turkey and North Africa and Central and Eastern Europe as the main focuses. He expects acquisitions to continue to strengthen the group’s portfolio, pointing to the success of Adjarabet, Sisal and Tombola Arcade, where revenue and adjusted EBITDA rose by 1.2x or more in the first two and a half years.
This month, Flutter entered the Brazilian market ahead of the launch of regulated online gambling in the country though an investment in Betnacional owner NSX Group to create Flutter Brazil.
Flutter may increase its shareholding through reciprocal put/call arrangements following the completion date. NSX is the number four operator in Brazil and has a portfolio of brands. On a standalone basis, it’s expected to generate revenue of $256m and adjusted EBITDA of $34m in 2024. Regulated online gambling in Brazil is expected to launch on January 1, 2025. The new regulator, the SPA, is reviewing 113 online gambling licence applications.
In August, Flutter upped its full-year fiscal guidance after the group, now listed on the NYSE, “outperformed all market consensus” in Q2. Revenue was $3.6bn, up 20 per cent year-on-year as the number of average monthly players grew 17 per cent to 14.3 million.
Net profits rose from $64m in Q2 2023 to $297m despite non-cash impacts of $147m on acquired intangibles amortisation charge and a $91m fair value gain on Flutter’s Fox Option liability. Group EBITDA was up 17 per cent at $738m.
US-facing FanDuel saw revenue rise 39 per cent to $1.52bn. Flutter said the brand held a 38 per cent market share of online gross gaming revenue (GGR) for the quarter, a 51 per cent net gaming revenue share and a 25 per cent igaming GGR share. It highlighted the migration of the FanDuel Casino to proprietary systems. Its Q2 revenue hit $357m.
