2021 Revenue Growth of Flutter Entertainment
Flutter Entertainment is an Irish bookmaker, formerly known as Paddy Power Betfair plc, founded in February 2016. The company resulted after Betfair and Paddy Power merged, a process that began in September 2015 and concluded on February 2nd, 2016. As a result of the merger, 650 jobs were lost in the Republic of Ireland and the United Kingdom.
Flutter Entertainment was later acquired by The Stars Group, a Canadian gambling and online gaming company which transitioned the brand and made it the global sensation it is today. Since its formation, Flutter Entertainment has become a renowned betting and gaming entertainment provider with clients from different countries, including the UK, Canada, Australia, and Ireland.
Flutter Entertainment Revenue Growth Over the Years
According to the Flutter Entertainment 2020 report, the company saw an incredible transformation due to the diversification caused by the merger. That year, Flutter Entertainment registered a 19% increase in average monthly players and a 28% increase in net revenue.
Even though these results were amazing, Flutter’s H1 2021 revenue was shockingly incredible. Peter Jackson, Flutter’s Chief Executive Officer, could not contain his excitement and was quoted saying H1 2021 has exceeded their expectations. That is after recording massive progress in their operational and strategic objectives. He further stated they have maintained a tremendous momentum in growing Flutter's fan base globally.
During the first half of 2021, Flutter Entertainment saw its active monthly players hit 7.6 million, a 40% increase compared to the previous year. The growth of active monthly players impacted Flutter's H1 2021 net revenue, which increased from £2.4 billion to £3 billion.
However, sports betting is credited for a huge percentage of Flutter’s H1 2021 net revenue. According to the H1 2021 report, Flutter’s sports betting portfolio generated a joint revenue of £1.89 billion compared to £1.19 billion recorded in 2020.
A Territorial Breakdown of the H1 2021 Revenue
Numbers show that Ireland and the UK maintained their positions as the top Flutter’s revenue boosters. Together, the countries earned the company £1.14 billion, which translates to a 94.2% increase. In the UK, both gaming and sports betting experienced tremendous growth. Gaming saw a 74.1% increase in revenue, translating to £397 million, whereas sports recorded revenue of £738 million, a 106.7% gain. Players in both countries staked £6.09 billion, which is a 68.7% gain compared to the last revenue report.
Analyzing the performance of Ireland and the UK further, online platforms raked in more revenue compared to the retail sector. The decrease in retail revenue was due to the closure of betting shops, a step influenced by the novel coronavirus.
To clarify further, the number of Flutter’s online customers in both Ireland and the UK rose to 3.3 million compared to 2.3 million active online customers registered in H1 2020. That saw the online revenue of both countries total to £1.09 billion. Sports betting contributed a large sum of the amount after yielding a revenue of £712 million. On the other hand, retail gaming markets raked in only £16m while sports retail portfolio was £26m.
Flutter’s Sportsbet AUS division also saw a phenomenal increase in revenue growth and performance. The company’s Australia revenue reached £585 million. Sports betting and online gambling in Australia are actively drawing in new customers and players. According to Jackson, Flutter’s CEO, the fact that Australia did not experience high levels of the novel virus is an indication that the performance may be permanent.
FanDuel Brand Performance in The USA
Flutter Entertainment operates FanDuel, an American gambling company that offers casino gaming and sports betting services. The FanDuel brand also offers daily fantasy sports and online horse racing products. Reports indicate that the company had the fastest growth after raking in a revenue of £652 million. The amount indicated an increase of 135.1% in profits.
Sports betting revenue played a huge role on FanDuel’s cumulative revenue after it raked £452m. The decision to open new betting markets in states like Virginia and Michigan seemed to have paid off. Jackson confirmed that FanDuel’s performance indicates that the gambling company is a market leader in the country, which means the costly investment was necessary. The total stakes made by FanDuel customers in the USA went up by 365.0%, reaching £5.07bn. According to Jackson, FanDuel remains to be the number one gambling company thanks to its quality products.
Even though Flutter Entertainment’s net revenue went up by a significant percentage, the company did not make profits across the board. There was a brand that registered a loss. PokerStars made a loss of 15.0% in H1 2021 after it only managed to rake in £680 million.
The international brand made a profit in the sports betting segment growing its revenue to £118 million. However, its gaming portfolio was dismal after it dropped by 23.2%, hitting £562 million. But according to Flutter, 2020 generally was not a great year for poker and PokerStars.
