Flutter: US drives six per cent Q1 growth as UK and Irish revenues drop

Flutter Entertainment posted first quarter results for 2022 headlined by six per cent revenue growth, with rapid expansion in the US accounting for more than half of its total wagers for the first time.

The parent company of Paddy Power, Betfair and Sky Bet, Flutter's UK and Irish revenues fell by eight per cent compared with the first three months of 2021, with the positive influence from the reopening of betting shops offset by online figures dropping 20 per cent on the comparable period.

The first quarter trading report highlighted three factors – all anticipated – that had depressed online results in the UK and Ireland: a set of more punter-friendly sports results in 2022; 2021's unique environment with players in lockdown; and company estimates that the impact of safer gambling measures have cost a minimum of £30 million.

Chief executive Peter Jackson said: "Flutter delivered a positive Q1 performance with revenue growth of six per cent. The quarter saw us launch our new global sustainability strategy, the Positive Impact Plan, aligning commercial goals with our commitment to support our customers, colleagues and the communities in which we operate."

Commenting on the situation in the UK and Ireland, Jackson added: "Outside of the US, our business performed well, adapting to the evolving regulatory and trading environment and reflecting the benefits of our global diversification.

"In the UK and Ireland we launched several new products in the quarter. I look forward to the imminent release of the UK Government’s White Paper on its review of the Gambling Act.

"In Australia, Sportsbet delivered good growth from ongoing customer driven momentum, with excellent retention of players acquired in 2021."

Flutter CEO Peter Jackson: 'I look forward to the imminent release of the UK Government’s White Paper on its review of the Gambling Act'

Flutter's penetration of the burgeoning US betting, gaming and fantasy sports market has driven growth, with FanDuel remaining the number one online sportsbook with a 37 per cent market share.

FanDuel's launch in Louisiana and especially the key market of New York helped power a 45 per cent growth in revenue and a 43 per cent rise in the number of active monthly players.

Jackson said: "In the US we had another exciting quarter as FanDuel continued to deliver on unparalleled scale, with the US accounting for over half of all stakes for the Flutter Group in Q1.

"We launched our FanDuel sportsbook in New York and Louisiana in January and also expanded into Ontario in April.

"We beat a number of FanDuel records in the quarter; Super Bowl Sunday was the single biggest day ever for new customers and we had over 1.5 million active customers on the day. March Madness this year also proved our most popular season yet, attracting 19 million wagers across the tournament."

Across the group total revenue for the quarter rose by six per cent, from £1.48 billion in the first three months of 2021 to £1.56bn. That breaks down to a nine per cent rise in gaming revenues and a five per cent uptick in sports, while Flutter posted a rise of 15 per cent in the number of active customers.

Jackson concluded: "With our enlarged recreational customer base, winning position in the US and ongoing focus on sustainable growth, our business remains well placed for the future."

Goodbody stockbrokers analyst Gavin Kelleher described it as a "robust update" from Flutter, while the company's share price was up seven per cent at 8,870p on Wednesday afternoon.

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