Flutter has reported "encouraging" growth in its Sportsbet business in Australia, with revenue up 12 per cent and active players up 6 per cent in the September quarter, despite an overall drop in turnover.
Total quarterly revenue for the Australian business grew to US$371 million, up from US$332 million for the same time last year, while active monthly players (AMP) jumped from 1.12 million to 1.2 million across the comparative quarters.
The staking (turnover) of Sportsbet customers dropped from $2.9 billion to $2.7 billion, or 8 per cent for the quarter, but it achieved much greater margin out of that business, something that has become an increasing focus for all Australian wagering providers.
Significantly, Flutter reported ongoing softness in the racing market and that much of the growth in revenue was derived from better-than-expected sports results during the peak periods of domestic AFL and NRL seasons. However, it did say that the number of active players had grown in both sports and racing.
“While the anticipated racing market declines were evident in the quarter, with staking eight per cent lower, AMPs were six per cent ahead and growing across both sports and racing, which we believe is encouraging for the future growth trajectory of the business,” Flutter CEO Peter Jackson told an investors’ call.
“We're pleased with the way that we're seeing the AMP growth. I think we've got some positive sports results in Q3. We've got to remember next year, we've got a load of taxes we're going to annualise,” he said.
“But I think it just goes back to the strength of the business and the benefits that Australia continues to provide into the rest of the group through the Flutter Edge in terms of helping us with things like generosity and product to the point of generosity.”
The results, driven primarily by growth in profitability in sports betting, have seen Flutter revise its end-of-year EBITDA guidance for Sportsbet upwards from US$270 million to US$290 million.
Overall, across the financial year, which for Flutter is a calendar year as it is headquartered in the northern hemisphere, the Sportsbet Australian business is still trailing on a couple of key indicators on 2023.
Overall revenue through the first nine months is 2 per cent lower than it was up until the same point of 2023, from $1.07 billion to $1.04 billion, while turnover is down 12 per cent across that period. Average monthly players have increased by 4 per cent compared to 2023.
Flutter revealed its margin from its sportsbook has increased 13.2 per cent, helping offset the overall decline so far in 2024 from a softer racing market and the overall drop in turnover.
“While the anticipated racing market declines were evident in the quarter, with staking eight per cent lower, (active monthly players) were six per cent ahead and growing across both sports and racing, which we believe is encouraging for the future growth trajectory of the business,” Flutter CEO Peter Jackson on the company's Australian bookmaker Sportsbet
The wash-up is that while 2024 has been a tougher year than 2023 on several key measures for Sportsbet, the market is showing signs of improvement heading into the final quarter.
Globally, Flutter reported 16 per cent growth in average monthly players, up to 12.9 million, while revenue for the quarter increased to US$3.2 billion. The company recorded a net loss of US$114m, a US$148m year-over-year improvement.
That net loss included significant impacts of US$249 million on non-cash impacts involving amortisation and fair value losses.
“Flutter had an excellent quarter with revenue growth accelerating to 27 per cent, well ahead of market expectations, and increases to our revenue and Adjusted EBITDA guidance for 2024,” Jackson said.
“In the US, we had a fantastic start to the new NFL season with peak wagers per minute already higher than Super Bowl LVII. Our proprietary product offering continued to drive strong parlay penetration as well as a step up in live betting handle.
Bren O’Brien
“Outside of the US, all divisions delivered a strong performance in the quarter as they leveraged the benefits of the Flutter Edge.
“In the UK, a broader product range across both sports and iGaming drove player and revenue growth. Sisal continued to make significant share gains in Italy as we look to expand our presence there with the addition of Snai.
“In Australia, Sportsbet has been demonstrating encouraging trends.”
