Flutter Entertainment PLC on Tuesday talked up its US offering FanDuel, which it said achieved annual profit for the first time in 2023, as the Paddy Power and SkyBet owner gears up for a possible primary listing move to New York.
The bookmaker, which already trades on the New York Stock Exchange, would lose its FTSE 100 status if shareholders back the primary listing move in a May poll.
‘Flutter delivered a strong 2023 performance as we continued to deliver on our strategy,’ Chief Executive Peter Jackson said. ‘As anticipated, our number one position in the US has transformed the group’s earnings profile during 2023 as FanDuel delivered a positive US full year adjusted earnings before interest, tax, depreciation and amortisation for the first time.’
In 2023, Flutter achieved revenue of $11.79 billion, up 25% from $9.46 billion in 2022. Its pretax loss, however, stretched to $1.09 billion from $295 million. Sales and marketing expenses rose by a quarter to $3.78 billion. General and administrative expenses were up 36% at $1.60 billion.
However, Flutter achieved adjusted Ebitda growth of 45% to $1.87 billion from $1.29 billion.
This was the first set of annual results Flutter has presented under US GAAP standards, as the bookmaker’s pivot across the Atlantic continues.
Flutter said it has traded strongly so far in 2024, with revenue surging 23%. US revenue has jumped 56% so far, with sportsbook alone up 64%.
Excluding the burgeoning US offering, revenue is up 6.3% so far in 2024. UK & Ireland revenue is 17% higher, though International grew at a slower pace of 3.0%, hurt by unfavourable sports results and an 8.8% revenue slide in Australia.
At the midpoint of its 2024 outlook, it expects group revenue growth of 18% and an adjusted Ebitda rise of 30%.
US revenue between $5.8 billion and $6.2 billion is expected, a 36% rise at the midpoint. US adjusted Ebitda of $653 million to $785 million is forecast, up more than threefold at the midpoint.
Excluding the US, 2024 revenue in the range of $7.65 billion to $8.05 billion is predicted, with an adjusted Ebitda of $1.63 billion to $1.83 billion. This would represent a rise of 6.3% for revenue and 5.4% for the Ebitda at the midpoint.
CEO Jackson said: ‘Outside of the US we made excellent progress integrating Sisal into our International business, a business which is a great example of our ’local hero‘ strategy at work, and took market share in UKI.
‘I was proud to see Flutter shares trading for the first time on the NYSE on January 29, 2024 and we have been encouraged by the increased focus from new US investors as a result of our US listing. We are working towards a shareholder vote on May 1, 2024 to approve our primary listing move to NYSE.’
Jackson continued: ‘We believe that our strategy and competitive advantages position us well to continue to grow the business through both organic and inorganic opportunities.’
Flutter shares traded 1.8% higher at 17,590.00 pence each in London on Tuesday morning.
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