Flutter Entertainment CEO Peter Jackson said FanDuel plans to “move forward” in igaming during an after-hours trading update for the company’s full-year 2023 results.
Flutter’s fourth-quarter financial results showed growth in the US, increasing revenue by 25% to £9.51 billion (€11.08 billion/$12.07 billion). With regard to FanDuel, Jackson first explained the operator’s three-year success strategy. He said Flutter plans for FanDuel to complete a race to the finish line last year.
“From an iGaming perspective, we are pursuing the strategy that we outlined at Capital Markets Day,” he explained.
“We said in the first year that there were things that were broken that we would fix. We said the second year we would achieve product parity and the third year we would be ahead of the market.”
Use M&A as a success driver
The chief executive said Flutter has focused on organic growth, “and that’s something we’ve done in Brazil.”
While Flutter didn’t delve into too many details about Brazil in its fiscal results, Brazil is certainly on everyone’s lips as the country nears regulation.
Jackson said he was “pleased” with the performances of Pokerstars and Betfair in the country. He added: “It has taken some time, but we hope that the regulation will be signed in Brazil at some point.”
He also praised the company’s M&A efforts in the region. The group sees this as an opportunity to consolidate its market position.
“But we have also used mergers and acquisitions as a means to consolidate our podium positions and try to reach the gold medal,” Jackson explained.
Looking at the fourth quarter as a whole, Jackson said Flutter saw strong performance in the sports and casino space. This is despite the sporadic nature of the first and last quarters.
“Of course we are very happy with the performance in the fourth quarter,” he said. “You should keep in mind that from a sporting perspective, our business has a certain seasonality. Q4 and Q1 will always be the busiest times for us.
“Even in the fourth quarter, there is a period of strong pressure at the start of the football season to ensure that we reactivate and re-engage customers.”
Similar to its winning strategy in Brazil, Jackson said Flutter is taking steps to become a leader in the casino space.
“We are also seeing very strong momentum in the casino as we execute on our strategy of staying ahead from a product perspective,” he continued. “We hope to see further progress in this area.”
This is reflected in the performance in the UK, where gaming revenue rose 17% on a constant currency (CC) basis and total average monthly player count rose 5% to 3.9 million.
Flutter competition is increasing sharply in the USA
Jackson discussed Flutter’s top revenue driver for the year and acknowledged Flutter’s place in the highly competitive US market.
FanDuel’s sportsbook currently holds a 43% gross revenue market share across all U.S. jurisdictions in which it operates.
Overall, sales rose 38% year-on-year to £3.06bn. Revenue rose 19% to £1.14bn in the fourth quarter. Its US iGaming offering also accounted for 26% share in the quarter.
However, Flutter noted that revenue in the period was lower than expected, missing its original target by £147 million.
“From a competitive intensity perspective, every year is competitive,” he explained.
“The start of football season, new competitors out there — there’s Fanatics, ESPN, we’ve had Caesars, BetMGM — we’ve had a lot of competitors over the years.
“I think this year has been very intense. But I think the quality of our products benefits us greatly. When I look at the customer acquisition revenues in the fourth quarter, we’re very pleased,” Jackson continued.
“We have reached the lower end of our payback period. Business is doing well. We have a great product and great momentum to finish the year in the States.”