Subsequent to the publication of Flutter’s Q3 financial report, market expert Lara Martinez provided her perspective on the company’s trajectory.
Flutter’s remarkable Q3 2022 earnings amounted to £1.89 billion (equivalent to $2.18 billion USD), representing a substantial 31% increase from the preceding year. Martinez, an analyst at Third Bridge, shared her observations on Flutter’s approach within the US market, its capacity to retain its market position, and the potential ramifications of the UK’s gambling policy review.
“Traditionally,” Martinez noted, “economic downturns haven’t significantly altered gambling behaviors, especially in sports wagering. However, should we experience a protracted or severe economic downturn, it’s unavoidable that consumer expenditures on discretionary activities like betting will be influenced.”
She elaborated, “Flutter’s blueprint for US market dominance appears to be robust, but there’s a discernible deficiency in their online casino game portfolio. Their primary obstacle in the US will be upholding their present market share. Our specialists foresee a more segmented US market in the coming period, with rivals like BetMGM and others potentially unveiling products that challenge Flutter’s sportsbook.”
Regarding apprehensions about regulatory shifts in the UK, Martinez stated, “Flutter’s emphasis on the recreational player as opposed to high-stakes gamblers suggests that the impact of the UK government’s gambling policy document should be negligible.”
The positive Q3 outcomes were driven by a significant 82% surge in US revenue, reaching £598 million, and further strengthened by the incorporation of Sisal. Sports-related revenue constituted the majority, hitting £1.14 billion, while gaming revenue comprised the remaining £748 million.
Flutter Entertainment’s Chief Executive, Peter Jackson, expressed great satisfaction with the firm’s recent achievements. “Our third quarter was exceptional,” he remarked, “with both our income and monthly user base experiencing an eleven percent surge year-over-year.”
He further emphasized their triumphs in the American market, particularly during the NFL season’s peak. “The US response since the NFL season commenced in September has been phenomenal, with over a million individuals now utilizing Flutter every Sunday to track the games. We’re also observing increased user retention, which is very encouraging, especially with the NBA season just beginning and our same-game parlays proving incredibly successful.”
