Flutter is “leading the race” in the UK in regards to the fallout from the Gambling Act review white paper, said CEO Peter Jackson.
Jackson made the comments on Flutter’s Q3 earnings call today (9 November). In Flutter’s third quarter results, released today, the Dublin-based business said ongoing growth in the US was its main driver. Group revenue was up 7.6% year-on-year to £2.04bn (€2.33bn/$2.50bn).
Jackson said that FanDuel had maintained its market leadership due to the release of new products during the quarter. This is despite the third quarter being naturally quieter, as there are fewer major sports fixtures taking place and the NFL launched mid-period.
In the UK and Ireland, revenue was up 11.2% to £566m. Online revenue in the region grew 11.5% to £494m and retail edged up by 9.1% to £72m. On the overall results, Paul Edgecliffe-Johnson, group chief financial officer at Flutter, said that the growth was due to a strong performance in gaming.
Getting ahead of the pack
Jackson said the business had “stepped forward early” to implement the white paper’s demands, stating that it is leading the charge in the UK and Ireland.
In Flutter’s H1 earnings call for 2022, Jackson said he expected the business to come out on top as a result of the Gambling Act review.
“We’ve been pretty clear that we’re leading the race from the UK perspective,” he said. “We got ahead of the changes and others are catching up. Which would infer we’re ahead. The team are executing every well in the UK.”
Edgecliffe-Johnson reiterated this point, stating that Flutter is currently performing well in the UK market as a result of its action.
“We’re clearly taking share,” he explained. “We got ahead of the changes from a white paper perspective. We’re undoubtedly performing well.” Edgecliffe-Johnson added that the business is “making some very considerable product enhancements” in the UK, mentioning Sky Bet specifically.
Location location location
As for Latin America, Flutter said it is “hopeful” that Brazil will regulate soon. However, it added that it doesn’t see the country as a headwind in 2024.
“We’re hopeful it will be coming soon,” said the gaming giant. “We’re very pleased with the performance of our business in Brazil. We’re growing and we’re excited we can see what we can do as that market regulates.
“… there are exciting developments across LatAm…. We are at double digits in Brazil in Q3.”
In September, Brazil’s lower house approved the government’s gambling bill. This bill legalises online casino and sports betting, and replaces the provisional measure signed by the president ,Luiz Inácio Lula da Silva, in July.
In October, the country’s ministry of finance published the general conditions for the operation of sports betting in Brazil. This outlined the licensing process, mandatory advertising stipulations and the rights of bettors.
Jackson and Edgecliffe-Johnson also commented on Flutter’s Australian operations. In its Q3 results, Flutter recorded growth across all segments apart from Australia. Jackson agreed that the Australian market is “soft”, but added that marquee events are “performing well”.
“But we are seeing a decline in the number of bet days and RP,” Jackson admitted. He explained that engagement had been driven very high during the Covid-19 pandemic and there had been an unwind from that.
As for India, Edgecliffe-Johnson said the country holds a “very exciting market for the group”. He added that Flutter is “well-positioned” with Jungalee, its rummy brand in the country.