Flutter Entertainment, the parent company of FanDuel, announced a 46% increase in its first-quarter adjusted core profit shortly before being listed on the New York Exchange.
FanDuel Driving Success
The good news is that Flutter experienced a 46% uptick in its Q1 2024 adjusted core profit but the bad news is that it also suffered a net loss of $375 million. However, the loss was attributed to negative foreign currency translations and increased expenses but year-over-year revenue spiked 16.4% to $3.4 billion.
Despite the rise in revenue, March Madness, the men’s and women’s national college basketball tournament, was not as favorable to the company as expected with gamblers sharper than predictions. This led to the revenue projections falling short of analysts’ expectations and a modest decline in share price.
Winning Streak
Despite some of these temporary shortcomings, guidance has not shifted for the remainder of the year, and driving that optimism is the continued success of its mobile sports betting giant, FanDuel, which captured 47% of the U.S. market in the opening quarter of 2024.
FanDuel’s online casino gross gaming revenue was responsible for 27% of the market while its mobile sports betting net gaming revenue captured a 52% share in the first quarter. Moreover, the brand’s success in securing early adopters was proven recently during the launch of mobile sports betting in North Carolina when 5.3% of the Tar Heel State’s adult population signed up at FanDuel within the first 45 days.
NYSE on the Horizon
In anticipation of Flutter’s pivot from the UK’s FTSE100 index to the New York Stock Exchange, the company has moved its operational headquarters to New York. However, the company will remain incorporated in Ireland where its operational headquarters had been housed in Dublin before the move to the Empire State.
Prior to the move to the NYSE, Flutter CEO, Peter Jackson, stated, “When I look at the volumes of trading that I see in the States, it’s significantly higher than we see on a European exchange. With those higher volumes, you’ll see investors being able to take bigger positions in a US business.”
He followed that up with a statement in March, saying, “We have FanDuel, and we want to make sure that our customers are able to buy shares in the company that owns their favorite entertainment provider. (…) Once they (investors) see some reporting in US GAAP, these are the codes and the language they understand. We hope that will facilitate new investors into Flutter,” Jackson added.
Market Mastery
More recently, Jackson was effusive in his praise for the company’s position in the market and its upcoming listing on the NYSE. “We have had an excellent start to the year,” he said. “In the US, FanDuel’s top line momentum is translating into strong growth in US adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share and embedding future profits within our business through disciplined investment.”
The company’s focus is also on other markets, which Jackson addressed. “Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK where the launch of Super Sub on Paddy Power has been our most successful product launch to date. Also in Italy, where we have been taking online sports betting and iGaming market share during Q1 and reached an all-time record in April,” said Jackson.
