Flutter's Q4 revenues hit by 'customer-friendly' US sports results

(Sharecast News) - Paddy Power and Betfair owner Flutter Entertainment has announced that full-year sales grew by almost a quarter, though fourth-quarter revenues in the US came in below guidance after paying out $343m to customers in adverse sporting results. The company, which runs FanDuel, the biggest sportsbook in the US with 43% gross revenue market share, said US fourth-quarter revenues were up 26% year-on-year, partially offset by a net revenue margin decline of 150 basis points to 7% due to adverse sporting results and higher promotional activity.

"Customer friendly sports results" in the fourth quarter meant that US gross revenues totalled $1.42bn (£1.14bn), some $225m below previous guidance provided at its third-quarter results in November.

Excluding US operations, fourth-quarter results were in line with guidance, with UK and Ireland revenues up 19%, Australia down 2% and international revenues up 4%.

Flutter said group revenues in the final three months of 2023 rose 11% year-on-year to £2.67bn, up from 8% in the third quarter but significantly below the 42% surge seen in the first half. As a result, full-year sales rose by 24% to £9.51bn.

"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," said chief executive Peter Jackson.

"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."

Flutter is currently working towards listing on the New York Stock Exchange and expects to debut on Wall Street on 29 January. "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," Jackson said.