Flutter Reports $11.8B Revenue, Heavier Losses in Fiscal Year

The parent company of FanDuel Sportsbook, one of the top two sports betting operators in the market, announced revenue of $11.8 billion for the fiscal year ending Dec. 31, 2023. 

Mar 26, 2024 • 18:39 ET • 4 min read
FanDuel Sportsbook
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Flutter’s business in the U.S. took off while losses globally widened in 2023 for the sports betting and iGaming operator. 

The parent company of FanDuel Sportsbook, one of the top two sports betting operators in the market, announced revenue of $11.8 billion for the fiscal year ending Dec. 31, 2023. 

Profits rose 24.6% from 2022, and further adjusted EBITDA spiked 45.4% year-over-year to $1.9 billion. 

In the U.S., Flutter enjoyed its first year of positive adjusted EBITDA with $167 million and a year-over-year revenue increase of 40.7%.

“FanDuel delivered its first full year of positive further adjusted EBITDA and has consolidated its leadership position in sports across the key months of NFL and NBA activity, capturing a 53% share of net gaming revenue in Q4,” Flutter CEO Peter Jackson. “This has been achieved by ensuring we have the best product in the market. We are investing to maintain this leadership position.”

Product innovation

FanDuel acquired 3.7 million new customers to both the online sportsbook and iGaming platforms in the fiscal year, and Average Monthly Players jumped 20.3% year-over-year to 12.3 million.

Jackson said that two new products, Parlay Hub and The Pulse, helped FanDuel create a larger win margin during the NFL season. 

“This product superiority, combined with our pricing accuracy means our structural hold margin has also progressed well ahead of expectations, reaching 13.5% in Q4,” Jackson said. “The strength of our product gives us the confidence to continue investing behind the excellent returns received from our customer acquisition investment.” 

Flutter’s CEO added that the sportsbook saw 25% revenue growth in pre-2022 U.S. markets. FanDuel launched in the populous states of Ohio and Massachusetts in 2023.

An investment in the operator’s online casino played a major role in Flutter’s U.S. figures as well. FanDuel’s market share grew by seven points from July 2022, and the operator’s iGaming brand became No. 1 in the market in January 2024.  

Widening losses

Revenue from outside the U.S. rose 16.4% while AMPs grew by 15% in 2023.

Flutter’s U.K., Ireland, and International group recorded an adjusted EBITDA of $1.6 billion. Non-cash charges, including a $725 million trademark impairment and amortization of acquired intangibles for PokerStars, led to a reported net loss of $1.2 billion for the 2023 fiscal year compared to $465 million in 2022. 

Flutter also invested $100 million in safer gambling initiatives, a 25% year-over-year increase. 

“Outside of the U.S., strong AMP and revenue growth in UKI and International, including the addition of Sisal, more than offset the previously muted trends in the Australian racing market,” Jackson said. “The UKI business had an excellent year. The combination of compelling new products and improved promotional efficiency has delivered an additional two percentage points of market share in 2023.”

Looking ahead

Flutter is looking to get even healthier in 2024. 

The company began listing on the New York Stock Exchange on Jan. 29 and is looking to make the U.S. its primary listing by May 31, pending a shareholders vote on May 1.

Guidance for 2024 is off to a strong start. Revenue for the first 11 weeks up to March 17 was up 23% from the same period in 2023. That window includes launches in Vermont and North Carolina.

“In the U.S., we expect revenue of between $5.8 billion and $6.2 billion, which is a midpoint, equated to year-on-year growth of 36%,” CFO Paul Edgecliffe-Johnson. “We expect U.S. further adjusted EBITDA to increase by nearly $0.5 billion of $710 million, again at the midpoint, and we expect U.S. cost of sales to be approximately 56.5% on a U.S. GAAP basis. We expect 30% of EBITDA to be generated in H1, with Q2 higher than Q1 due to the timing of state launches noted above.”

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