FanDuel Posts Profits in First Half, Flutter Continues to Consider US Stock Market Enlistment
Flutter Entertainment, the largest online gaming company in the world (stock symbol: PDYPY), recently released their financial results for the first half of the year. According to the statement released by the Dublin-based company, their FanDuel division was profitable from January to June.
FanDuel, the largest sportsbook operator in the US, reported an impressive $100 million in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The US operations contributed $63 million of that total. The statement also noted that FanDuel's revenue rocketed up by 63% during this period, and their market share in the second quarter was an astounding 47%, making them way ahead of their closest competitor.
The statement continued, "Margin benefit over the market expanded to 410 basis points; new NBA markets further evidence of sustainable product leadership." The note about the iGaming proposition driving market share up to 23% in the second quarter also caught the attention of readers.
FanDuel becoming the industry's first profitable US sportsbook operator was a significant achievement last year. With that in mind, it was widely assumed that the gaming company would continue to impress this year. While their profitability in the first six months of 2023 might not have come as a surprise, the extent of their profits and revenue growth may have exceeded what industry experts initially predicted.
The fact that FanDuel is the market leader in US online sports betting might make their recent profitability announcement seem less significant; after all, competitors like DraftKings and BetMGM have also started to make their own strides. In fact, DraftKings clocked its first profitable quarter, and BetMGM was EBITDA-positive in the last quarter, suggesting they could potentially be profitable for the rest of the year as well. However, Flutter's shareholders have reason to be excited.
Flutter expects their US revenue for 2023 to be between $4.5 billion and $4.9 billion, with an adjusted EBITDA ranging from $120 million to $240 million. "H2 (second half) has started in line with expectations. Assuming normalised sports results for H2, we anticipate full-year Adjusted EBITDA to be broadly in line with market expectations," Flutter communicated in the statement.
Flutter currently owns 95% of FanDuel, while the other 5% is owned by Boyd Gaming.
The company also announced that they're still on track to list their shares on the New York Stock Exchange, though their timeline has been slightly pushed back to the fourth quarter of 2023 or early 2024. Earlier, it was believed that the stock could make its US debut in the second half of the year. "We're working through the implications for our other listings on securing this U.S. listing," Flutter CEO Peter Jackson said in response to an analyst's question during a conference call. "We're still working with the Securities and Exchange Commission (SEC) at the moment, and we'll continue to work in the background on what the implications are for our other listings."
Currently, Flutter's primary stock listing is on the London Stock Exchange. The company's US shares are traded over the counter. It's not clear yet which stock exchange Flutter prefers for their US listing - NASDAQ or the New York Stock Exchange.
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Source: www.casino.org
