Sportsbet still caught in wagering downdraft

Headwinds persists for Australia’s biggest corporate bookmaker, with global powerhouse Flutter reporting that Sportsbet’s revenue declined $US22 million year-on-year through the first three months of 2024.

Australian wagering has been in a downtrend trend for well over 12 months, with Sportsbet’s revenue declining in comparison to the same period the previous year in each of the past five quarters.

In the annual earnings report released in March, it was revealed that Sportsbet’s overall revenue dropped by 7.1 per cent on 2022, and that trend continued in the first quarter of 2024, with a six per cent drop on the first quarter of last year.

In real terms, revenue from Flutter’s Australian business was $US329 million compared to $US351 million in Q1 2023. The adjusted EBITDA figure was more favourable but still dropped two per cent from $US85 to $US83 million.

Sportsbet reported that total staking was 19 per cent lower. The earnings report also detailed more favourable sports betting results from Sportsbet during this period, which offset what it said was a ‘softer racing environment’.

That pattern of racing dragging on the bottom line in Australia is consistent with other reports from the likes of Entain, the owner of the Ladbrokes and Neds brands in Australia, as well as Tabcorp.

Drop in racing turnover drags on Tabcorp

A drop-off in racing turnover continues to drag on Tabcorp’s bottom line, with the wagering giant reporting a 5.9 per cent turnover decline on racing alone over the last six months of 2023.

The StraightBren O’Brien

Globally, Flutter reported a 16 per cent increase in revenue to $US3.40 billion while adjusted EBITDA grew by 46 per cent to $US514 million, driven primarily by expansion of the company’s flagship US brand FanDuel.

The sportsbook brand in the United States grew 30 per cent year on year, while UK and Ireland revenue was up 17 per cent and other international 16 per cent.

“We have had an excellent start to the year. In the US, FanDuel’s top line momentum is translating into strong growth in US Adjusted EBITDA and market share gains,” Flutter CEO Peter Jackson said.

“We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment.”

“Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK where the launch of Super Sub on Paddy Power has been our most successful product launch to date, and in Italy where we have been taking online sports betting and iGaming market share during Q1 and reached an all-time record in April.”

Flutter shareholders voted on May 1 to move the company’s primary listing to the US, with that move becoming effective as of May 31.

“With a greater proportion of the Group’s future profits expected to be generated in the US, we have moved our operational headquarters to New York reflecting the importance of the US sports betting and iGaming market to our business,” Jackson said.

Entain banks on New Zealand growth to offset soft Australian market

While there has been continued softness in the Australian wagering market, Entain is counting on strong growth in the coming months as it further integrates its New Zealand business.

The StraightBren O’Brien