The parent company of Sportsbet has reported a 10 per cent revenue decline for Australia’s biggest corporate bookmaker during the second quarter of 2024.
In the three months to June 30, Flutter said its Australian operation’s revenue dropped by $US40 million year-on-year.
That followed a trend from the first quarter of 2024, which saw a six per cent decline compared to the same quarter in 2023.
In real terms, revenue from Flutter’s Australian business was $US349 million compared to $US389 million in the first quarter of last year.
The adjusted EBITDA figure dropped 31 per cent from $US108 million to $US74 million after a two per cent fall in the first quarter from $US85 to $US83 million due to lower revenue.
Australian staking declined 8 per cent in line with market challenges and rising regulatory and compliance costs flagged during Flutter’s 2023 earnings announcement.
Flutter chief executive Peter Jackson said the wagering headwinds experienced in the Australian racing industry once again contributed to a downward trend.
“In Australia, the previously noted anticipated declines in the racing market were evident in the quarter,” he told a Q2 earnings call.
Bren O’Brien
Australian wagering has been in decline for the past 18 months although corporate bookmaking rival Entain this week announced it has outperformed the market for the past six months.
Increased taxation and product fees have been dragging on Flutter’s Australian business, making it difficult to increase profitability.
But Jackson said there were positive signs for the business with average monthly players (AMPs) increasing five per cent year-on-year.
“We are however seeing encouraging growth in our customer base and player engagement on key sporting events such as the rugby league State of Origin games during Q2, where we doubled our new customer acquisition year-over-year,” he said.
Globally, Flutter lifted its full-year guidance after experiencing a better-than-expected second quarter.
The wagering group expects to beat its previous forecast with an increase in core profit of around 30 per cent.
Bren O’Brien
It said adjusted core profit rose 17 per cent in the second quarter.
In the US, where Flutter recently moved its primary listing, the wagering giant expects full-year core profit of $US680 million to $US800 million with market leader FanDuel.
A core profit of $US1.69 billion to $US1.85 billion is now seen in its other global markets including Britain and Australia, compared to $US1.63 billion to $US1.83 billion forecast previously.
