Dublin-based Flutter Entertainment, the parent company of U.S. sports betting giant FanDuel, reported an increase of over 24% in 2023 revenues. However, the company also posted a loss of $1.2 billion due to one-time costs including the impairment charge over the trademark of the company’s PokerStars brand.
Flutter Thriving
Flutter’s calendar year losses spiked from $370 million in 2022 to $1.2 billion in 2023 but the events that led to those losses have been designated as one-offs by the company’s accountants. However, the 24.6% year-over-year revenue increase to $11.8 billion is a positive sign for Flutter’s future and its U.S.-based FanDuel brand registered positive adjusted EBITDA for the first time in the company’s history.
Chief Executive Peter Jackson stated: “Flutter delivered a strong performance in 2023 as we continued to deliver on our strategy. This was underpinned by a localized approach to technology and product, coupled with unique scale advantages of the Flutter Edge.”
Flutter also joined the New York Stock Exchange on January 29th of this year as a secondary listing, with its primary listing on the London Exchange. However, those roles could be reversed as the company has asked its shareholders to vote on May 1st for the company’s primary listing to be switched from London to New York.
Jackson spoke about the upcoming vote and said, “We have FanDuel, and we want to make sure that our customers are able to buy shares in the company that owns their favorite entertainment provider.”
Jackson also added, “Once they see some reporting in US GAAP, these are the codes and the language they understand. We hope that will facilitate new investors into Flutter.”
The earnings report specifically mentioned FanDuel, the powerhouse online gaming app that has emerged as the most popular brand in the United States, “FanDuel is the number-one online sportsbook and the number-one iGaming brand in the U.S. — and we’ve got a plan to keep winning.”
Sisal Provides a Boost
Flutter boasts an impressive portfolio of gaming companies like FanDuel along with Paddy Power, PokerStars, Sky Betting & Gaming, Sportsbet and Betfair. But the parent company also has other important brands like the one it acquired from CVC Capital in August 2022 for $2.1 billion – Italian gaming operator Sisal.
The addition of Sisal to the ever-expanding Flutter portfolio contributed $1.2 billion in 2023, up from $465 million the previous year. It is yet another example of Flutter’s horizontal integration and its emergence into new gaming markets.
Jackson was quoted as saying, “For some time we have wanted to pursue this market opportunity via an omni-channel strategy and this acquisition will ideally position us to do so. Sisal has grown its online presence significantly in recent years, aided by its proprietary platform and commitment to innovation. I’m excited to see how Flutter can complement these capabilities through our scale, differentiated products, and operational capabilities.”
Francesco Durante, Sisal Chief Executive, commented at the time of the acquisition, “Over the last five years, thanks to CVC’s support, we have successfully transformed Sisal into a leading digital and international gaming company. Through our commitment to digital innovation, international expansion, and safer gambling, we have achieved a leadership position in Italy’s online gaming market and developed our global footprint by winning lottery tenders in Morocco and Turkey.”
