The world’s largest online betting company, Flutter, has reported a 29% increase in revenue on a pro-forma basis for the first quarter of 2023, driven by the rapid growth of its U.S. unit and a strong recovery in Britain and Ireland.
The company, which owns brands such as Paddy Power, Betfair, and Sky Bet, credited the near-doubling of its U.S. sports betting market revenue to its popular Fanduel brand.
Flutter also experienced a revenue increase of 17% and an 11% growth in average monthly players in the UK and Ireland.
This growth was attributed to the company’s reshaping of its second-largest division to attract more recreational gamblers, following a significant decline in revenue last year due to measures to curb gambling addiction.
Flutter CEO, Peter Jackson, attributed roughly half of the company’s growth to product improvements and suggested that competitors’ adoption of safer gambling measures may have contributed to Flutter’s outperformance of the market.
Jackson expressed optimism about the company’s growth potential, stating that “we had our mojo back,” and emphasizing the positive performance of the UK and Ireland division.
Flutter’s revenue also rose 69% in its international division, with the recently acquired Italian gaming operator Sisal performing exceptionally well. However, revenue fell 4% in Australia.
Flutter is firmly on track to become the first U.S. operator to turn a profit after the nationwide ban on sports betting was lifted in 2018.
The company made an investment-driven loss of $313 million in the U.S. market last year, but it is forecasting a significant revenue jump for its Fanduel brand.
However, last week the company announced that new government plans to combat problem gambling in the UK would cost Flutter an estimated £50 to £100 million in lost revenue from 2024, on top of the £150 million already lost due to existing measures.
Flutter expects the combination of new stake limits, a statutory levy on betting firms, and affordability checks to negatively impact revenue in the UK and Ireland.
Flutter’s shares were down 0.8% at 15,660 pence by 09:15 GMT, despite rising 37% this year.
The Dublin-based company is continuing to expand globally and is expected to make further announcements in the coming months.