Posted on: August 9, 2023, 03:24h.
Last updated on: August 9, 2023, 03:24h.
The world’s largest online gaming company, Flutter Entertainment (OTC:PDYPY), has reported profitable results for its FanDuel unit in the first half of 2023. This comes as no surprise, as FanDuel became the first US sportsbook operator to post a profitable quarter last year. However, the depth of the profitability and revenue growth may be viewed as unexpected traits.
Flutter, based in Dublin, revealed that its US operations contributed $63 million to its adjusted EBITDA of $100 million. FanDuel experienced a 63% surge in revenue and captured a dominant market share of 47% in the second quarter, surpassing its nearest rival.
Margin benefit over the market expanded to 410bps; new NBA markets further evidence of sustainable product leadership,” noted Flutter in the statement. “Improved iGaming proposition drove market share gains to 23% in Q2.”
This profitability announcement from FanDuel, which holds a 95% stake under Flutter, comes at a good time as competitors like DraftKings and BetMGM are also posting profits. Flutter expects its US revenue in 2023 to range from $4.5 billion to $4.9 billion, with adjusted EBITDA projected at $120 million to $240 million.
Flutter also revealed that it is on track to list its shares in New York, although the specific timeframe has been updated to the fourth quarter of this year or early 2024. The company’s primary equity listing is on the London Stock Exchange, and it currently trades over-the-counter in the US.
“We’re working through the implications for our other listings on securing this U.S. listings a little what we’re doing with the Securities and Exchange Commission (SEC) at the moment in terms of preparing our application to the FCC, which is ongoing, and we’ll continue to work in the background on what the implications are for our other listings,” said Flutter CEO Peter Jackson in response to an analyst question on a conference call.
With its profitable first half performance, Flutter’s FanDuel remains a dominant force in the US online sports betting market.+