- Flutter Entertainment saw a profit of 16% in its first quarter reports.
- Prior to sporting events being canceled due to COVID-19, they had a 29% growth.
NEW YORK - Flutter Entertainment has reported a 16% growth in revenue for their first quarter despite sporting events being on hiatus. Before professional sports ceased all play due to the Coronavirus pandemic, the company was up by 29% in terms of sports betting revenues.
So while they dipped 13% since then, they are still in the green with their profit margins, taking in money instead of losing it as many other companies in the industry have been.
How Is Flutter Making A Profit?
While sportsbooks are having a harder time making a profit because of the lack of sports competitions and the closure of land-based sports betting facilities nationwide, how is Flutter turning a profit?
Horse racing bets. Flutter is a business that has operations worldwide and their continued horse racing market in Australia and parts of the U.S. have helped to push them along to do better than expected in their first quarter.
“The Group performed very well in the period prior to the disruption to sporting events in mid-March. We delivered strong customer growth across each of our brands and benefitted from favourable sports results across our sportsbooks. Following the widespread cancellation of sporting events, Group revenues have been more resilient than we initially expected, helped by the continuation of horse racing in Australia and the US. Gaming continues to perform well across the Group,” said Chief Executive Peter Jackson.
In the United States, Flutter Entertainment is an extension of FanDuel. With the continued acceptance of sports betting throughout the country, FanDuel (Flutter) has been making the rounds to enter various state sports betting markets.
"U.S. revenue growth of 72% reflected a strong performance across both sports and gaming," the company reports. "This was driven by further expansion into additional states and continued excellent customer acquisition. FanDuel has acquired over 100,000 new customers since the beginning of the year, bringing total sportsbook customers acquired since launch to over 450,000. As a result, FanDuel's online sportsbook continues to enjoy a leadership position with an approximate 41% market share."
Going Into Quarter Two
Going into the second quarter, it is possible that some sports and the online sports betting market may come back in time to affect Q2 numbers.
However, if the market continues on this path, Flutter is confident that they will not dip into the redzone, even if their percentages drop further. The previous merging of Flutter Entertainment and the Stars Group can only further the businesses in the right direction during this time.
“While the current disruption is truly exceptional, it underlines the importance of product and geographic diversification. As such, the strategic logic of our combination with The Stars Group remains compelling. Following approval of the deal yesterday by the Irish Competition and Consumer Protection Commission, we look forward to completing the transaction in Q2 upon receipt of outstanding shareholder and regulatory approvals,” said Jackson.