Flutter Entertainment Breaks £3bn Revenue Barrier

Flutter Entertainment has posted its first-half figures of 2021, which shows the betting giant has broken through the £3bn Revenue Barrier. Sports revenue was a key driver, with a 57% increase in the first six months.

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Flutter Report £3bn Revenue © Pixabay.

Flutter Entertainment has credited operational progress as the company reports a 221% rise in gross profit. The company reported a 30% year-on-year pro forma revenue rise which saw their constant currency figures break £3bn for the first six months of 2021.

The Paddy Power Betfair owner reported a 2% annual decline in adjusted EBITDA for all operations to £684m. A figure that does not include the group’s American operations.

When Stateside brands such as FanDuel are included, the EBITDA figure falls 12%, a figure of £597m.

The company’s gross profits rose by 221% to £77m.

In the breakdown of divisions, the biggest revenue rise was achieved in sports revenue. In the first six months of 2021, revenue figures of £1,894m saw an increase of 58% on the previous year-on-year figure of £1,199m. The year-on-year constant currency figure is slightly lower at 57%.

While sports revenue has been the biggest driver, not surprising with the delayed Euro 2020 in this reporting period, the higher-yielding gaming vertical has reported minimal growth.

The £1,159m revenue from gaming in the first six months is only slightly above the 2020 figure. The £1,1190m figure is 3% higher year-on-year but represents just 1% on the year-on-year constant currency figure.

Not surprisingly, the company’s online and retail divisions have had contrasting fortunes during the Covid-19 crisis and the subsequent lockdown measures put in place.

In the UK and Ireland online markets, revenue was up by more than a third at 37%, equating to £1bn. While retail figures dropped by 47%, generating just £41m in revenue during the same timeframe.

The group’s revenue by division shows that the UK is still the biggest market for the company, although emerging markets are closing the gap quickly.

UK and Ireland’s total (retail and online) was £1,135m, a figure 30% higher than the 2020 figure.

Australia’s £585m revenue is 27% higher than the 2020 figure of £435m. However, the international market (excluding Australia, UK and Ireland and the USA) was down 11% for Flutter, £680m for 2021, compared to £801m for 2022.

It’s the American market that saw the strongest growth. In 2020, Flutter saw revenues of £278m; this figure shot up to £652m in 2021, representing a growth rate of 159%.

The American market will be encouraging because gaming revenue is not showing a slowdown, unlike the UK and Ireland markets. £200m revenues represent an increase of 98% on 2020 figures.

Although, like the UK and Ireland divisions, the sports market is going strong. Revenues of £452m in US sports betting is up 202% on the company’s revenues in the first six months of 2020.

Flutter Entertainment CEO Peter Jackson said: “The first half of 2021 exceeded our expectations as we made substantial progress against our operational and strategic objectives while maintaining excellent momentum in growing our player base.

“Our global sports businesses benefitted from further enhancements to our products and the return to more normalised sporting calendars while we sustained our strong performance in gaming despite the challenging comparatives set last year,” Jackson added.

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