Flutter’s Q3 Growth Unhindered by Revenue Dip in Australia

The global gaming, sports betting and entertainment provider, Flutter Entertainment plc, released its latest trading update, covering the three months ended September 30, 2023. Released Thursday, the new unaudited results reveal that the company’s total revenue in Q3 this year hit £2.04 billion ($2.5 billion). A comparison to the £1.89 billion ($2.32 billion) result from the corresponding period in Q3 2022 shows a year-over-year increase of 8%.

Providing a breakdown, Flutter revealed that its revenue from sports operations for the latest trading period hit £1.12 billion ($1.37 billion), down by 2% year-over-year when compared to the result from Q3 in 2022. On the other hand, the company’s gaming revenue in Q3 this year soared to £914 million ($1.12 billion). A comparison to the same period in 2022 shows that this year, the company’s gaming revenue increased by a solid 22%.

Not unexpectedly, Flutter revealed that the average monthly players (AMPs) for the third quarter this year increased as well. In total, the company reported 11.1 million AMPs, a result that marks a 16% year-over-year increase when compared to the 9.6 million result reported for Q3 in 2022.

During the most recent trading period, Flutter confirmed it acquired a 51% stake in MaxBet, a leading betting and gaming operator with a presence in Serbia. Announced back in September, the acquisition had a price tag of €141 million ($148.6 million).

The Company Posted a Decrease in Revenue for Australia

A breakdown of the total revenue per region showed strong growth for the market in the United States. Overall, Flutter’s US-facing operations saw revenue of £668 million ($820.2 million), up year-over-year by 12%. The company’s UK and Ireland operations posted a similar increase in revenue that hit £566 million ($694.7 million), up 11% year-over-year.

On the other hand, Flutter’s international operations posted £539 million ($661.2 million) in revenue. This result, compared to the Q3 2022 figure, showed an uptick of 16% for the third quarter this year.

In contrast to the positive results, Flutter’s Australia-facing operations posted a revenue decrease. The company’s operations in the country reported £262 million ($321.4 million) in revenue for Q3 this year, down by 18% year-over-year.

Results Boosted by Diversified Business Model

Peter Jackson, Flutter’s chief executive, addressed the recent results, explaining that the operating conditions in Australia remain challenging. Still, he highlighted the company’s strong position in the market, pointing out that its Sportsbet brand has grown its player base nearly two times since 2019. Jackson added that the brand remains a leader in the market, positioned well for further growth.

“The Group had another strong quarter in Q3 and even in this seasonally quieter period, the power of our diversified business is clear with revenue growth of 13% to over £2 billion.“

Peter Jackson, chief executive at Flutter

The chief executive praised the strong results for the most recent trading quarter. Jackson said that the results reaffirm the success of the company’s diversified business model.

Speaking about Flutter’s presence in the United States, he said the company continues to expand its market share and customer base. Finally, Jackson said that the company is positioned well for long-term and sustainable growth thanks to its diversified portfolio.