Flutter Entertainment, the powerhouse behind leading brands such as FanDuel and Paddy Power, has delivered a remarkable set of Q2 financial results, underscoring its strong position in the global gaming and sports betting industry. The operator reported total revenue of $3.61 billion for the quarter, representing a 20% increase year-over-year. Even more impressively, its net income soared by 364%, reaching $297 million compared to just $64 million in the previous year. Additionally, Flutter’s adjusted EBITDA grew 17% to $738 million, showcasing a solid financial performance that reflects the company’s growth trajectory.
This success was not only driven by strong financial figures but also by increased user engagement across its platforms. Flutter saw a 17% increase in average monthly players (AMPs), totaling 14.3 million users, marking a significant boost in its customer base. These impressive numbers highlight Flutter’s ability to expand its reach and maintain strong user engagement in an increasingly competitive market.
FanDuel Dominates the U.S. Market
One of the standout performers in Flutter’s portfolio is FanDuel, which continues to dominate the U.S. sportsbook market. In Q2, FanDuel reported a 47% share of gross gaming revenue (GGR) and a 51% share of net gaming revenue (NGR) in the U.S. sportsbook market, further solidifying its market leadership. Flutter’s U.S. sportsbook revenue surged 41% to $1.1 billion, highlighting the strength of its product offering and disciplined approach to customer acquisition.
FanDuel’s market dominance is supported by compelling unit economics, particularly in states that recently launched sports betting. North Carolina, which legalized sports betting in Q1, saw FanDuel capture a 59% NGR market share. Additionally, states that launched in 2022/2023 saw online revenue growth of 45%, reflecting the brand’s continued ability to capitalize on new market opportunities.
FanDuel’s proprietary technology has also played a significant role in enhancing the customer experience, leading to an improved product offering. For example, the completion of FanDuel Casino’s migration to Flutter’s proprietary platform enabled better user engagement and more integrated promotional capabilities.
Flutter’s International Success
Outside the U.S., Flutter also saw impressive growth across its international markets. In the UK and Ireland (UKI), AMPs increased by 7%, driven by strong momentum in iGaming and favorable results during the European Football Championship (Euros). The tournament attracted over 2.8 million bettors, contributing to significant revenue growth. Flutter’s innovative product offerings, such as the introduction of QuickBuild for Same Game Parlay and exclusive content in iGaming, drove increased customer engagement and market share gains in these regions.
Italy proved to be another success story for Flutter, with its brand Sisal achieving record market share. AMPs in Italy rose by 25%, thanks to the launch of the first Same Game Parlay product in the country and expanded online casino offerings. This propelled Sisal to become the top online brand in Italy, marking a 190 basis points increase in market share year-over-year.
While the Australian market faced challenges due to a decline in horse race wagering, Flutter continued to see growth in customer acquisition and engagement, particularly during key sporting events such as the Rugby League State of Origin games.
A Global Powerhouse with U.S. at Its Core
One of the major milestones achieved in Q2 was Flutter’s transition to having its primary listing on the New York Stock Exchange (NYSE) and the establishment of its operational headquarters in New York. This move reflects the growing importance of the U.S. market to Flutter and signals the company’s commitment to further expansion in this region.
CEO Peter Jackson emphasized Flutter’s ability to capitalize on its global scale and the competitive edge provided by its proprietary technology. He highlighted the company’s strong U.S. performance, citing FanDuel’s top-notch product offering and market-leading pricing as key drivers of growth. Flutter’s disciplined approach to customer acquisition and investment in new markets sets the stage for continued growth in the second half of the year and beyond.
Looking Ahead
With Flutter raising its guidance for the full year, the company is poised for continued success. The updated guidance reflects strong Q2 performance, positive sports results, and ongoing momentum into Q3. The group’s revenue is expected to grow by 20% year-over-year, with adjusted EBITDA increasing by 34%.
Flutter’s ability to deliver value across its diverse portfolio of brands, supported by its proprietary technology, positions it well for future growth. As the company looks ahead to its Investor Day in September, investors and industry stakeholders alike will be eager to learn more about Flutter’s growth potential and capital allocation strategies.
In conclusion, Flutter’s Q2 results demonstrate its impressive market leadership and ability to capitalize on opportunities in both the U.S. and international markets. With strong financial performance, innovative product offerings, and continued investment in customer acquisition, Flutter is well-positioned to maintain its upward trajectory and remain a dominant force in the global gaming industry.
