Flutter Entertainment, the owner of brands such as FanDuel, Paddy Power, and Betfair, has reported a 35% increase in revenue for 2021, with growth seen across all of its major markets.
However, the company also revealed struggles in some of its international markets, particularly Germany and the Netherlands. Despite this, the company’s size and scale mean that it is able to work in difficult conditions, said CEO of Flutter Entertainment, Johnny Hill.
“The company has a diverse portfolio, and it is important to do the right thing across the portfolio, rather than focusing solely on short-term returns” Hill added.
Flutter has also seen success in the US market, with its FanDuel brand being profitable in some “large early markets,” such as Indiana and New Jersey. CEO Peter Jackson said that the brand is currently on track to be profitable overall in 2023. The company had previously considered spinning out the FanDuel business for its own IPO, but share values across the sector have dropped in recent months, raising questions about the suitability of the move.
In the UK and Ireland, Flutter is expected to feel the consequences of the Gambling Act Review, which launched in 2020. The company said that its large base of recreational customers should help cushion the blow of any rules imposed on higher spenders. Flutter recently announced changes in the UK and Ireland markets intended to make the business more sustainable, including tying bonus pay for certain executives to responsible gambling-related KPIs.
“I recognise that the changes we’re implementing have a financial impact on our business, but I believe that it is the right thing to do” said Jackson. “If the UK sector experiences a year or two of lower growth, it will be worth it to ensure we can continue to operate in a responsible and sustainable way.“
As Flutter Entertainment continues to navigate the changing regulatory landscape, it is important for the company to remain adaptable and focused on long-term growth, rather than short-term gains. As Hill noted, “we’ve got to do the right thing for the medium-term for this business and not just do something to shore up short-term returns because that would not be driving shareholder value in this case.”
