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Flutter Reports $8 Billion in Revenue for 2021, Retains Top U.S. Spot Despite Losses

Flutter Entertainment, the Dublin-based international gaming giant, reported that for 2021 it had revenues of about $8 billion (6 billion UK pounds), up 37% from 2020 (on a pro forma basis up 17%).

There was a reported loss before tax of about $383 million (288 million pounds) after a charge for non‐cash amortization from acquired intangibles of about $723 million. The adjusted pro forma profit was $825 million.

Flutter trades on the London Stock Exchange. It holds an extensive portfolio of gaming companies around the world and is the parent of the U.S.-facing sports betting company FanDuel. By market share, FanDuel is the leading online sports betting company in America.

Other familiar betting names in the Flutter portfolio are PokerStars and Sky Bet brands.

Top Brand in U.S. Sports Betting

FanDuel has about 40% of the online sports betting market in the United States with an online presence in 14 states. When its online casino share is factored in, Flutter has 31% of the overall online gambling market in the Unites States, Flutter executives said during a March 1 year-in-review financial report.

That said, the U.S. division delivered a loss in EBITDA (earnings before interest, taxes, depreciation, and amortization) of $323 million for 2021, according to a financial report available on Flutter.com.

As some of its competitors also have contended, Flutter believes its U.S. online sports betting market operation will begin to move from the red to the black in 2023 as expenses related to opening new markets and acquiring customers are lowered. 

On March 1, the Flutter stock price dropped about 14% in the range of $62. During some of the NFL season, Flutter hovered around $100 a share. Much of the publicly traded online sports gambling industry has seen substantial declines in stock prices lately.

Customer Acquisition Costly in United States

FanDuel noted that the competition for customers in the U.S. has been fierce.

“We’ve had undoubtedly the most aggressive start of NFL (in 2021) that we’ve ever had and we’ll probably see it again next year. Well, hopefully we won’t – but maybe we will,“ Flutter CFO Jonathan Hill said. “We’ve seen some people come in with very, very aggressive offers and we’ve seen our economics through that period hold up. And we have maintained discipline at times when people were buying handle-share. There were some crazy offers out there.”

Hill contended that while competitors were engaging in such aggressive customer-acquisition spend, FanDuel returns were “fantastic.”

Flutter CEO Peter Jackson lauded the customer experience his company’s platforms provide.

“They may continue to take other people’s free money but they continue to use FanDuel,” Jackson said of customers.

The Future of FanDuel

Last year, Flutter discussed spinning off FanDuel as a publicly traded company in the United States. Those ambitions are on hold.

Jackson listed the motivations for having FanDuel listed in the United States, including: The publicity and lift that a company such as DraftKings received when they were listed in 2020; that a company could use equity in addition to cash to finance marketing partnerships, and as a tool to renumerate colleagues.

Regarding companies and individuals who have accepted equity as part of their payment in a partnership, Jackson noted wryly, they probably “are wishing now they had taken cash.” 

And as far as a FanDuel spin-off is concerned, Jackson noted, “We’re monitoring the markets at the moment and it’s something the board will keep under evaluation.”

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