Millions of fans supplement the NFL numbers at FanDuel sportsbook each and every Sunday, but it’s not only from a financial perspective.
Flutter is the parent company to FanDuel, Sky Betting & Gaming, Sportsbet, Sisal, PokerStars, Paddy Power, Betfair, Adjarabet, TVG, and Junglee Games. And this past Wednesday, the company’s CEO, Peter Jackson, said FanDuel Sportsbook is averaging over 1 million users in the United States for NFL betting on Sundays.
Jackson mentioned his delight with FanDuel’s high-performance rating during an interim trading update:
“In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season. The ongoing momentum in our US division had led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.”
Revenue Exceeds Expectations by $100 Million
FanDuel anticipates its US revenue will land between $2.95 billion and $3.2 billion in 2022. That’s an added $100 million gain from the previous forecast range of $2.85 billion to $3.1 billion.
This arrives following a generated $700 million in FanDuel’s third quarter. These results make Flutter the most prominent business division in the United States, as FanDuel leads the market share in the quarter by 42%.
Rearranged EBITDA losses from the United States will remain between $300 million and $360 million. This excludes the added costs from an early Marland sports betting launch.
The ever-growing progression of US sports betting gives Flutter absolute confidence in its 2023 profitability. FanDuel will push to obtain “as many customers as we can” to support this profitability, the company said.
Flutter’s management kept their cards close to their chest regarding the specifics as FanDuel Capital Markets Day is slowly approaching.
However, Jackson and CFO Jonathan Hill did provide some added details that weren’t mentioned in the trading update call:
- The rational promotional environment has allowed FanDuel to invest in existing states heavily. At least 40% of new users obtained in the quarter stemmed from locations that launched online sports betting last year or earlier.
- Daily fantasy sports and the racing segment for TVG witnessed flat revenues compared to numbers in 2021.
- iGaming share has taken a minor hit due to the lighter sports schedule in the quarter.
FanDuel Versus Fox
A long-reigning argument between Flutter and Fox is coming to an end. Arbitrators said that FanDuel is valued in the $20 billion region. This gives Fox an 18.6% stake at $4.1 billion as of today.
“This vindicates our position on the matter, with FanDuel valued at $20 billion based on its fair market value on 3 December 2020, and provides important clarity on the significant cost required to buy into the number on US gaming business.”
It remains to be seen whether Fox has any say in Flutter’s Initial Public Offering (IPO). “It’s challenging to picture an IPO in the current market,” Jackson said.