Flutter Entertainment plc is a leading name in international sports betting, gaming, and entertainment overall. Read on to discover who owns Flutter Entertainment, how much it’s worth and how it’s become such a giant name in the industry today.
Overview of the Company
Website: https://www.flutter.com/
Founder: Andrew Black, Ed Wray, Gerard Cunningham, & Mark Davies
CEO: Peter Jackson
Status: Public
Revenue: £11.79 billion (2023)
Headquarters: Dublin, Ireland
Founded: February 2, 2016
Products: Betfair, FanDuel, Sportsbet, PokerStars, Sky Betting & Gaming, Paddy Power, Sisal, tombola, Junglee Games, TVG, and Adjarabet.
History of Flutter Entertainment
These are the significant events and strategic moves that have shaped the growth of Flutter Entertainment brands:
2000: Andrew Black and Edward Wray launch Betfair, a pioneer betting exchange online platform. 2016: Paddy Power and Betfair merger to form Paddy Power Betfair. Ownership was divided between 52% of former Paddy Power shareholders and 48% of Betfair shareholders. 2018: Paddy Power Betfair acquires 58% in FanDuel, a leading US daily fantasy sports company. 2019: Paddy Power Betfair rebrands to Flutter Entertainment and begins trading in the LSE under the ticker “FLTR”. 2020: Flutter increases its stake in FanDuel to 95% and buys The Stars Group, adding PokerStars and Sky Betting & Gaming to its growing portfolio. 2021: More US states legalize sports betting. Flutter sells the odds comparison website Oddschecker to Bruin Capital. 2023: Flutter 51% stake in MaxBet, Serbia’s leading omnichannel sports betting and gaming. 2024: The company lists on the New York Stock Exchange (“NYSE”) on January 29 under ticker “FLUT” and delist from Euronext Dublin.
Financial Overview
2024 Highlights So Far
- In Q1 2024, adjusted EPS dropped to $0.10, mainly due to a charge related to the fair value change in the Fox Option liability.
- Flutter made strategic investments and acquisitions, including MaxBet and Sisal.
- Stock price closed at $198.48 on July 10, 2024, with a one-year target estimate of $247.51.
2024 – Q1 Report
With the mentioned loss factors from 2023 still in play, the adjusted earnings per share (EPS) for Q1 2024 was reported at $0.10, down from $0.69 in Q1 2023.
The significant decrease in EPS was mainly due to a $184 million charge related to the fair value change in the Fox Option liability. However, despite the decline in EPS, the Group’s adjusted net earnings before deductions (EBITDA) – a measure of profitability – improved to $514 million. That’s 46% higher than Q1 2023. Various factors drove this improvement.
In the US, Adjusted EBITDA improved to $26 million from -$53 million in Q1 2023, mainly due to strong revenue growth and operational efficiency.
Outside of the US, Adjusted EBITDA reached $488 million, a 20% increase due to increased revenue, improved operational efficiency, and the one-time credit settlement of the historic litigation.
2023 Figures
- Revenue: $11.8 billion, up 24.6% YoY
- Net loss: $1.21 billion, up from a $370 million loss in 2022
- Average monthly players: 12.3 million, up 20.3% YoY from 10.2 million
- Adjusted EBITDA: $1.9 billion, up 45.4%
As outlined in Flutter Entertainment’s annual report, company revenue surged nearly 25% to $11.8 billion from the previous year. This was mainly driven by strong performance in the US market, most notably so from FanDuel. The increase in revenue for sports betting has been seen across many states in the US year-on-year.
Despite this growth, the company incurred a net loss of $1.21 billion, leading to a loss per share of $(6.89). But, Adjusted Earnings Per Share increased by 25.8% to $3.51, reflecting Further Adjusted EBITDA.
The contributing factors of the loss included increased net interest expense, a change in the Fox Option liability, and additional investments in compliance and resources.
Regional Performance
- Regionally, the US market saw significant growth, skyrocketing from 134.2%, from $1.915 billion in fiscal 2021 to $4.484 billion in 2023. Sportsbook revenue improved by 45.9%, and iGaming revenue increased by 47.2%, driven by FanDuel.
- Its revenue outside the US also grew significantly, rising by 14.3% from $6.393 billion in fiscal 2021 to $7.306 billion in fiscal 2023.
- UK & Ireland revenue rose 14.4% YoY to $3 billion. Sportsbook revenue increased by 10.5%, and iGaming improved by 18.1%.
- In Australia, revenue fell 7.1% to $1.4 billion due to softer racing market conditions and reduced player engagement post-COVID.
Investments and Acquisitions
Stock Price and Changes
Gambling Brands Owned by Flutter Entertainment
Flutter Entertainment subsidiaries include:
Paddy Power: Offers sports betting, casino, and bingo with a strong retail presence in the UK and Ireland.
Betfair: Betting exchange market, allowing users to bet against each other, sportsbook and casino services.
Sky Betting & Gaming: top UK online sports betting, casino, poker, and bingo, known for the Sky Bet brand.
FanDuel: Leading US daily fantasy sports market with sportsbook and casino.
PokerStars: The world’s largest online poker site, famous for tournaments, cash games, and innovative gaming options.
Sportsbet: Australia’s leading online bookmaker celebrated for diverse sports betting markets and engaging promotions.
Flutter Entertainment News
- Flutter Entertainment’s Q1 2024 revenue is up 16% from Q1 2023’s $2.9bn to $3.4bn; FanDuel leads US Market
- Flutter’s US growth prospects and a secondary listing in New York thrust it to outpace its London-listed rivals in 2024.
- Sky Bet to provide up to £3 million to the BHF Over the next 12 months.
Biggest Competitors in the Industry
Despite FLUT’s dominant position, it faces strong competition from other major players in the gambling industry, including Entain plc, DraftKings Inc., and Caesars Entertainment, Inc.
Entain plc: formerly known as GVC Holdings, presents a notable challenge to Flutter, particularly in the European and UK markets. With globally recognized brands like Ladbrokes, Coral, and Bwin, Entain maintains a diverse portfolio across online and land-based gambling sectors.
DraftKings Inc.: emerges as Flutter Entertainment’s primary competitor in the US market. Renowned for its daily fantasy sports and online betting services, DraftKings has swiftly expanded its presence across the US with user-friendly platforms and aggressive marketing strategies.
Caesars Entertainment, Inc.: owner of iconic brands like William Hill, poses a significant threat to Flutter Entertainment. With a vast network of casinos, resorts, and online platforms, Caesars holds sway in both US and international markets, particularly in the lucrative sports betting industry.
The Future of Flutter Entertainment
Moving forward, the focus will be on US market expansion via FanDuel, tech innovation, sustainability, and global market exploration.
Flutter aims to revolutionize gaming and betting for long-term sustainability, prioritizing customer and community welfare. With its ‘Positive Impact Plan’ and a solid brand portfolio, Flutter shapes the future of betting and gaming through market expansion and innovation.
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