Flutter Earnings Show FanDuel's US Dominance: What Investors Should Know

One of the leading online sports betting companies was the feature of the earnings report from European gaming company Flutter Entertainment PDYPY.

What Happened: Flutter Entertainment reported first half 2021 revenue up 30% year-over-year on an adjusted basis and up 99% from the prior year.

Adjusted EBITDA was up 75% in the first half of the year.

The company had 7.63 million average monthly players at the end of the second quarter.

“The first half of 2021 exceeded our expectations as we made substantial progress against our operational and strategic objectives while maintaining excellent momentum in growing our player base,” Flutter CEO Peter Jackson said.

Related Link: How A FanDuel IPO Could Be Impacted By Fox, Flutter Entertainment Valuation War

U.S. Market Share: Flutter Entertainment owns the FanDuel and FoxBet brands in the U.S. The company is the leader in online sports betting in the U.S. with a 45% market share in the first half of the fiscal year.

The U.S. segment saw first-half revenue up 159% year-over-year to $906 million. Over 2 million customers were acquired in the first half of the year as the company went live in several additional states. The company said it exceeded over $500 million in the second quarter, marking the first time hitting the quarterly milestone.

“In the U.S., we remain the number one online sports betting operator by some distance thanks to the quality of our products and the extensive reach of the FanDuel brand,” Jackson said.

Flutter Entertainment sees the U.S. segment posting positive EBITDA in fiscal 2023.

Guidance for the U.S. segment sees revenue hitting $1.8 billion to $2 billion for the full fiscal year. The guidance assumes the launch of FanDuel in Arizona and Connecticut.

“We remain absolutely focused on extending our sports product advantages and replicating our market share success in further states as they regulate.”

FanDuel’s early lead in daily fantasy sports has helped with customer acquisition with 40% of all sports betting customers in the U.S. coming from the company’s DFS operations. The move is similar to DraftKings Inc DKNG utilizing an extensive DFS customer list to cross-promote.

The company also mentioned it sees an opportunity to grow its market share in the U.S. iGaming market.

Photo: courtesy of Flutter.