Paddy Power owner Flutter has announced a total revenue of over £2.4bn for Q1 (up 54% year-on-year), attributing its success to rapid expansion in the US market.
US Market Expansion and Share Listing
Flutter’s Q1 revenues grew £845m or 54% year-on-year (46% on a constant currency basis). As the US market becomes increasingly vital to its operations, Flutter plans to list its shares in New York to provide better access to capital. Shareholders approved the US listing at the company’s recent AGM, and Flutter expects to complete the process before the end of the year. CEO Peter Jackson said the move would position the group well for its “next phase of growth.”
Remarkable Growth in the US
In the US, overall revenues rose by 92%, with sportsbook revenue increasing by 147% from the same period in 2022. Flutter now holds a 50% share of the sports gambling market, up 14 points year-on-year. Gaming revenue in the US increased by 43%, giving the company a 23% share of the American gaming market. Jackson noted that Flutter’s US operations are on track to become profitable in 2023.
Rapid Customer Growth
Flutter added almost 3 million customers in Q1, raising its average monthly players from 9.52 million in Q1 2022 to 12.35 million in the recent quarter, a 30% annual growth. Excluding the US, the company experienced an 8% growth overall, 17% in Ireland and the UK, while its Australian arm saw a 4% decline.
Increased Retail Revenue
Retail revenue rose by 15% as Paddy Power expanded its market share in the UK and Ireland and customers returned to bookmakers post-Covid. Jackson stated that the UK government’s recently published White Paper on gambling had “vindicated” Flutter’s actions to ensure safer gambling for customers, adding, “The changes will bring consistency to safer gambling protections for customers and make responsible play a priority across all operators, which we strongly support.”
