Flutter says it’s committed to using some of the increased revenue to invest in growing its business even more globally.
Flutter Entertainment produced a 2024 second quarter that surpassed expectations and has the parent company of FanDuel enjoying substantial growth.
The sports betting and iGaming company reported a 20% year-over-year revenue increase to $3.6 billion globally during its Q2 earnings release on Tuesday.
U.S. profits soared 27% to $1.53 billion as FanDuel extended its position as the No. 1 operator in the market.
Net income across all brands reached $297 million as annual monthly players increased 17% to 14.3 million. Adjusted EBITDA jumped 17% to $738 million during the three-month period that ended June 30.
“It was a very strong quarter for the group and ahead of market expectations,” Flutter CEO Peter Jackson said. “We have outperformed in our major markets, U.S. sports and iGaming, U.K., Ireland, and Italy, providing great momentum for the second half of the year.”
Product improvements led to higher hold percentages in the NBA, WNBA, and MLB betting and increased retention in the U.S. while Euro 2024 and Indian Premier League Cricket led customer growth in international markets, Jackson said.
Thriving in the states
FanDuel is providing Flutter with a gold mine in the U.S.
The online sportsbook saw average monthly players rise 27% in the U.S. over the three months. Adjusted EBITDA jumped 51% to $260 million in the Q2.
FanDuel held a 47% gross gaming revenue market share and a 51% net gaming revenue share in sports betting.
Player volumes have jumped 20% in pre-2022 states while FanDuel claimed 59% of the market in North Carolina, which launched sports betting in March.
iGaming accounted for 25% of the revenue share in the U.S. during the second quarter.
Building upon halfway success
Flutter is committed to using some of the increased revenue to invest in growing its business even more globally.
The successful Q2 raised the 2024 outlook as guidance for the year rose from between $7.65 billion and $8.05 billion to between $7.85 billion and $8.15 billion across non-U.S. markets.
The revenue range in the U.S. also increased from between $5.8 billion and $6.2 billion previously to $6.05 billion and $6.35 billion.
Adjusted EBITDA range in the U.S. also increased from $635 million-$785 million previously to between $680 million and $800 million in 2024.
“The returns we are seeing give us the confidence to continue driving customer acquisition in the second half, building a bigger business, which bodes well for 2025 and beyond,” Jackson said. “We look forward to setting out this growth potential in more detail, and the capital allocation opportunities that will unlock, at our Flutter Investor Day in New York on Sept. 25.”
In other Flutter news
Jackson took a question about sportsbook surcharges head-on on Tuesday, announcing that FanDuel wouldn’t be implementing a fee on winning bettors and that the company would find other ways to handle high tax rates in certain markets. DraftKings flirted with the idea but backed off its plan shortly after Flutter’s announcement.
The Flutter CEO was also asked about reports that the company could look to bid on PENN Entertainment and its ESPN BET sports betting platform. Jackson wouldn’t fuel the rumor mill but he did add that “sometimes the best deals are the ones we haven’t done.”
He said mergers are part of the business but declined to specifically comment on any other potential acquisitions.
Jackson said he has no plans to rename the company under the FanDuel brand or pursue a public listing for the online sportsbook at this time.
