TIDMFLTR
RNS Number : 0725A
Flutter Entertainment PLC
18 January 2024
18 January 2024
Q4 2023 Trading Update
Consolidating US sports leadership position. Group ex-US in-line
with Q3 guidance
Quarter ended 31 December Fiscal year ended 31 December
Unaudited YoY% YoY%
GBPm 2023 2022 YoY% CC(1) 2023 2022 YoY% CC(1)
---------------- ------- ------- ----- ------ -------- -------- ------ -------
AMPs(2) ('000s) 13,588 12,114 +12% 12,325 10,245 +20%
Sports revenue 1,655 1,527 +8% +13% 5,771 4,788 +21% +23%
Gaming revenue 1,016 887 +15% +19% 3,743 2,906 +29% +29%
------- ------- ----- ------ -------- -------- ------ -------
Total revenue 2,671 2,414 +11% +15% 9,514 7,693 +24% +25%
------- ------- ----- ------ -------- -------- ------ -------
All commentary presented within this trading update is on an
IFRS accounting basis . Flutter expects to present full year 2023
audited results in accordance with US GAAP on 26 March 2024 and
will issue reconciliations of historic results between IFRS and US
GAAP in advance of this date .
-- Group: Execution of Flutter strategy underpinned strong
growth in AMPs (+12%) and revenue (+15%)
-- US: Strong momentum delivered AMPs +33%, sportsbook stakes +53% and gaming revenue +49%
- FanDuel remained #1 US sportsbook with 43% Q4 gross revenue
market share, (51% net revenue share) with industry leading pricing
and risk management capabilities delivering significant expected
gross revenue margin growth
- FanDuel Casino, #2 iGaming brand with continued market share
gains to 26% in Q4, +5ppt year-on-year
- Q4 revenue growth (+26%) reflected this underlying strength ,
partially offset by a sportsbook net revenue margin decline
year-on-year of 150bps to 7.0% driven by:
-- A 220bps expansion in sportsbook expected gross revenue
margin year-on-year to 13.5%, offset by;
-- An adverse sports results swing year-on-year of 320bps due to
very customer friendly sports results in the quarter (Q4 2023:
-240bps adverse, Q4 2022: +80bps positive) and;
-- An increase of 50bps in promotional spend year-on-year to
4.2%, in line with year-to-date spend levels, which continue to
drive strong returns
- Relative to expectations, Q4 gross revenue was impacted by
customer friendly sports results of $343m which were primarily
mitigated by expected gross revenue margin being better than
anticipated. This resulted in Q4 US net revenue of
GBP1,139m/$1,417m which is GBP147m/$225m below previous guidance
provided at Q3, with an approximate 35% flow through to Adjusted
EBITDA.
-- Group ex-US: strong Q4 momentum, leading to FY 2023
performance in line with guidance provided at Q3:
- UK & Ireland (revenue +19%): Delivering continued market
share gains through product improvements
- Australia (revenue -2%): Reflecting guided racing trends in line with expectations
- International (revenue +4%): Driven by Consolidate and Invest markets which grew 7%
-- US listing and Flutter reporting:
- Subject to the effectiveness of its Form 20-F Registration
Statement with the U.S. Securities and Exchange Commission, the
effective date of our NYSE listing is on track for 29 January
2024.
- On 26 March the Group will report full year 2023 numbers in US
GAAP and US dollars and will provide 2024 guidance .
-- MaxBet: Transaction completed on 9 January 2024 adding a
local hero brand in Serbia, a fast growing regulated market, to the
Flutter portfolio.
Peter Jackson, Chief Executive, commented:
"The Group traded well in Q4 underpinned by our leading local
brands supported by global Flutter Edge advantages. In the US,
FanDuel consolidated its sports leadership position during the peak
quarter for sporting activity, while FanDuel Casino went from
strength to strength. While sports results were very customer
friendly, particularly on the NFL in November, the underlying
momentum in the business remains very strong heading into 2024.
Outside of the US, the quarter traded in line with expectations,
with continued strong momentum in the UK&I supported by recent
product enhancements and International growth driven by our
"Consolidate and Invest" markets.
Subject to the effectiveness of our Form 20-F registration
statement with the US Securities and Exchange Commission, we are
very excited that the addition of a US Flutter listing is now just
days away. This is a pivotal moment for the Group as we make
Flutter more accessible to US based investors and gain access to
deeper capital markets.
I am looking forward to 2024 and further building on the
momentum within the Group to continue delivering growth. "
Divisional summary
Fiscal quarter ended 31 December
Total Sports Gaming Average monthly
players(2)
YoY YoY YoY
Unaudited revenue YoY % % % 2023 YoY
GBPm 2023 2022 % CC(1) CC CC (000s) %
----- ------ ------ ----------
US 1,139 955 +19% +26% +21% +49% 4,032 +33%
UK & Ireland 647 543 +19% +19% +18% +21% 3,888 -2%
- UK & Ireland
Online 572 472 +21% +21% +21% +22% 3,888 -2%
- UK & Ireland
Retail 75 71 +6% +6% +5% +9%
Australia 304 332 -9% -2% -2% 1,189 -7%
International 582 583 0% +4% +1% +5% 4,479 +17%
----- ----- ---- ------ ------ ------ ----------
Group ex-US 1,532 1,459 +5% +8% +6% +11% 9,556 +5%
Group 2,671 2,414 +11% +15% +13% +19% 13,588 +12%
------------------
Fiscal year ended 31 December
Total Sports Gaming Average monthly
players(2)
YoY YoY YoY
Unaudited revenue YoY % % % 2023 YoY
GBPm 2023 2022 % CC(1) CC CC (000s) %
------ ------ ------ ----------
US 3,603 2,604 +38% +41% +39% +47% 3,209 +38%
UK & Ireland 2,455 2,144 +15% +14% +12% +17% 3,911 +5%
- UK & Ireland
Online 2,155 1,871 +15% +15% +12% +18% 3,911 +5%
- UK & Ireland
Retail 300 272 +10% +10% +10% +8%
Australia 1,167 1,263 -8% -3% -3% 1,111 +2%
International 2,289 1,683 +36% +36% +60% +29% 4,094 +31%
------ ----- ---- ------ ------ ------ ----------
Group ex-US 5, 911 5,089 +16% +17% +12% +24% 9,116 +15%
Group 9,514 7,693 +24% +25% +23% +29% 12,325 +20%
------------------
(1) Constant currency ("cc") growth is calculated by
retranslating the non-sterling denominated components of Q4 2022 at
Q4 2023 exchange rates. Growth rates in the commentary are in local
or constant currency.
(2) Average Monthly Players represent the average number of
players who have placed and/or wagered a stake and/or contributed
to rake or tournament fees during the month in the reporting
period.
(3) Online sportsbook and gaming market share is the gross
gaming revenue ("GGR"), unless otherwise stated, market share of
our sportsbook and gaming brands for Q4 2023 in the states in which
FanDuel was live (excluding Tennessee as they no longer report this
data), based on published gaming regulator reports in those states
as of 16 January 2024.
Analyst briefing:
The Group will host a questions and answers call for institutional
investors and analysts this morning at 9:00am (GMT). To dial into
the conference call, participants need to register here where they
will be provided with the dial in details to access the call.
Contacts:
Investor Relations:
Paul Tymms, Investor Relations + 44 75 5715 5768
Ciara O'Mullane, Investor Relations + 353 87 947 7862
Liam Kealy, Investor Relations + 353 87 665 2014
Press:
Kate Delahunty, Corporate Communications + 44 78 1077 0165
Lindsay Dunford, Corporate Communications + 44 79 3197 2959
Rob Allen, Corporate Communications + 44 75 5444 1363
Billy Murphy, Drury Communications + 353 1 260 5000
James Murgatroyd, FGS Global + 44 20 7251 3801
------------------------------------------------- -------------------
About Flutter Entertainment plc:
We are a global betting and gaming group with an ambition to
drive positive and sustainable change in our industry. Through our
world class brands we excite and entertain customers, while leading
the way in responsible play. Our strength is the Flutter Edge,
optimising the advantages of our global scale to drive business
performance and positive impact for our customers, colleagues and
communities.
We report as four divisions:
-- US: includes FanDuel, TVG and PokerStars brands, offering
regulated real money and free-to-play sports betting, online
gaming, daily fantasy sports and online racing wagering products to
customers across various states in the US and Canada.
-- UK & Ireland: includes the Sky Betting and Gaming, Paddy
Power, Betfair and tombola brands offering a diverse range of
sportsbook, exchange and gaming services across the UK and Ireland,
along with Paddy Power betting shops.
-- Australia: the Sportsbet brand offers online sport betting.
-- International: includes Sisal, PokerStars, Adjarabet, Betfair
and Junglee brands operating in multiple jurisdictions around the
world offering a diverse range of sportsbook, exchange and gaming
services.
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END
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