FanDuel is on its own a champion within Flutter’s ecosystem and one of the company’s most important assets in the US market. Group revenue increased by 54% in the first quarter, but FanDuel was the real winner as the brand’s revenue jumped by 92% on an annual basis, demonstrating that the company may indeed be getting closer to delivering on an elusive goal – profitability.
FanDuel’s Strong Gains Point to Future Profitability
The FanDuel sportsbook revenue alone increased by 147% on an annual basis, and the company’s betting operations now claim about 50% of the general regulated market in the country, making it the most significant player there is. Peter Jackson, Flutter’s CEO, earnings call address, spoke highly of what the company has been able to achieve through FanDuel in the market.
FanDuel Advantage and Flutter Edge, Jackson explained, helped significantly increase the company’s presence. Jackson spoke highly of the fact that Flutter had acquired 1.5 million customers over the period, an achievement that is a significant contribution to the company’s future prospects. The sports betting handle generated in the United States alone, some $10.9 billion, accounted for 60% of the company’s global sportsbook operations.
FanDuel stock has also been posting gains over the past few days, with the stock opening at $196 on Thursday, May 4. FanDuel has been on the road to profitability for the longest time. However, the company has made a clear commitment to achieving just that with FanDuel confirming in 2022 that 2023 would indeed be a year that would deliver on investor hopes and the promise of long-term gain.
More New Audiences to Tap Into
There has been another reason for this shift. Easy capital and the promise of investment for the sake of gain in the very long term have become a less popular concepts among investors, who are now keen to see some tangible results. FanDuel has been able to somewhat deliver on this promise by growing its presence in Massachusetts and Ohio, which have added significant growth to its overall player base with the company also knowing better than to overspend on marketing.
One of the true reasons for the company’s strong results has been the seasonability of sports as well – the March Madness and Super Bowl contests both took place during the first quarter of the year. Same Game Parlay products have also become increasingly popular, leading to an uptake in the average monthly players, which was 46% higher during the quarter.
With Flutter heading for a US listing in New York, the company is definitely bullish on its long-term prospects in the US market.