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Flutter Eyes US Stock Listing After Earnings from FanDuel

Jessica Aletor
Written by Jessica Aletor
August 23, 2023
Flutter Eyes US Stock Listing After Earnings from FanDuel

The past two years has seen Flutter establish itself as a major iGaming leader through a spate of deals and acquisitions. Interestingly, these strategic activities have not been without result. Flutter is currently the largest online gaming company worldwide and operates FanDuel, equally the largest sportsbook operator in the United States.

On Wednesday, August 10, Flutter made a major announcement informing shareholders that FanDuel posted a highly profitable half-year between January to June 2023.

While this comes as no surprise to anyone who has followed FanDuel’s trajectory, the amount of financial improvement, however, is simply incredible.

US Operations Account for 60% of FanDuel’s First-Half Earnings

According to a statement released by the management of Flutter, the Dublin-based company recorded an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $100 million between January and June 2023. Of that massive amount, $63 million, representing 63% of the total earnings, came from US operations.

FanDuel saw a 63% revenue growth from the last half of 2022 as well as securing 47% of the total global market share in the second quarter of 2023. Flutter’s US revenues also soared 71% to $2.28 billion, with 98% of that coming from FanDuel’s operations.

The statement reads thus:
“Margin benefit over the market expanded to 410 bps; new NBA markets further evidence of sustainable product leadership. Improved iGaming proposition drove market share gains to 23% in Q2. H2 (second half) has started in line with expectations. Assuming normalized sports results for H2, we anticipate full-year Adjusted EBITDA to be broadly in line with market expectations,” Flutter further noted in its statement.

Perhaps FanDuel’s profitability stems from its user growth in the first half of the year. The company reported adding 2 million users, indicating an 18% rise from the same period in 2022. According to CEO Peter Jackson, the launch of sports betting in Ohio and Massachusetts strongly improved FanDuel’s user population.

“The first half marks a pivotal moment for the group,” Jackson remarked. “Our US business is now at a profitability inflection point, helping transform the earnings profile of the group and significantly enhance our financial flexibility.”

Flutter Positive About US Listing Before End of the Year

Away from FanDuel for a bit, Flutter’s other sportsbook operations were largely unprofitable. FOX Bet and Poker Stars reported $37 million in negative adjusted EBITDA. Early in August, Flutter announced that it was shutting down FOX Bet after multiple legal problems with co-owners and poor revenue.

The company stated that it expects its US revenue in 2023 to range from $4.5 billion to $4.9 billion while adjusted EBITDA stands at $120 million to $240 million. Unfortunately, there have been losses on the London-end of the business which may affect overall global revenue.

Flutter shares went down by 3.4% in London in the second week of August, bringing the price to £143.95. This came after Penn Entertainment announced a new partnership with ESPN.

Many at Flutter believe FanDuel’s profitability announcement is a good cushion for the losses suffered on different ends. This is especially true as Flutter needs the confidence of existing shareholders as it looks to list in the US.

Another Quote from CEO Peter Jackson

“We’re working through the implications for our other listings on securing this U.S. listing a little what we’re doing with the Securities and Exchange Commission (SEC) at the moment in terms of preparing our application to the FCC, which is ongoing, and we’ll continue to work in the background on what the implications are for our other listings,” Jackson informed an analyst via conference call.

Till now, it is unsure if Flutter would list on the NASDAQ or New York Stock Exchange. However, the company’s management confirmed that it has shifted the timeline for listing to the last quarter of 2023 or early 2024.

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