Flutter’s Latest Financial Statement Shows Business is Booming
Take a look at Flutter Entertainment‘s latest financial statement if you need proof gambling is big business. The London Stock Exchange-listed FTSE100 company released its interim financial information this week. Stating business is booming is something of an understatement.
Flutter Entertainment’s latest financial statement is for the six months of the year up to June 30, 2021. The group revenue is the first indicator that stands out from the crowd. The leading global sports betting and gaming company generated £3.503 billion ($6.595 billion) in revenue in H1 2021. This marks a 28% increase on the £2.389 billion ($4.498 billion) generated for the same period in 2020.
Profit before tax increased 221% from £24 million ($45.18 million) in H1 2020 to £77 million ($144.98 million) in H1 2021. The company managed to reduce its net debt by 7% too. However, this figure weighs in at £2.682 billion ($5.049 billion), a colossal sum.
Flutter’s Financial Statement Key Areas At A Glance
| Statistic | H1 2020 | H1 2021 | Year-on-Year |
|---|---|---|---|
| Average monthly players | 7,620,000 | 5,445,000 | +40% |
| Group Revenue | £2.389 billion | £3.503 billion | +28% |
| Adjusted Group EBTDA | £703 million | £684 million | -13% |
| Profit before tax | £24 million | £77 million | +221% |
| Net debt | £2.899 billion | £2.682 billion | -7% |
Flutter enjoyed significant growth in the emerging United States market during this financial reporting period. Revenue from its popular FanDuel brand grew 159% to £652 million ($1.228 billion) for the first six months of 2021. Sports betting revenue made up £452 million ($851.57 million) of the US FanDuel revenue. The impressive figures reveal Flutter enjoys a 45% online sportsbook market share going into H2 2021.
The gambling giant’s United Kingdom and Ireland financial figures make shareholders happy, too. Online revenue for UK and Ireland topped £1.09 billion, a 37% increase from the same reporting period in 2020. However, UK and Ireland retail revenue fell more than 40% to £41 million ($77.24 million). This is because its bricks-and-mortar betting shops endured temporary closures during the worst of the COVID-19 pandemic.
Average monthly players grew 44% in the UK and Ireland due to the European Championships (Euro2020) tournament. England progressed to the final, where they lost on penalties to Italy, which kept punters coming back for more.
Australian Arm Continues Thriving
Peter Jackson, Flutter Entertainment’s chief executive, described the group’s Australian H1 2021 results as “phenomenal.”
“In Australia, Sportsbet delivered a phenomenal H1 performance with high customer retention rates during a period of reduced COVID disruption, suggesting that the business has experienced a permanent step change in scale.”
“Australia was less impacted by Covid related interruptions in H1 than the UK & Ireland. Competitor retail outlets were open for the majority of the half, and therefore H1 trends may provide a good indication of longer-term customer behaviour in the market.
The scale of our Australian online business has increased significantly over the last two years, with AMPs in H1 56% higher than in H1 2019 on a pro forma basis. Retention rates exceeded our expectations, most notably among customers identified as being traditional retail customers. The proportion of staking from these customers throughout H1 remained at the same elevated levels we experienced during 2020. With added confidence in our ability to retain these customers, we believe the events of the last 17 months may represent a permanent step change in the scale of the Sportsbet business.
We look forward to sharing more details and customer insight with you at our upcoming Australian investor day on September 22nd.”
Flutter Invests Heavily In Sales and Marketing
The financial figures show Flutter invested heavily in sales and marketing in H1 2021. Spend here increased by £302 million ($569 million) to £728 million ($1.371 billion). The majority of the increased marketing costs stem from acquiring new customers in the United States. Its US division accounts for most of the 20% increase in operating costs, too.
Flutter used its latest financial documents to announce the sale of one of its companies. It sold OddsChecker Global Media for £135 million ($254.35 million) in cash. The sale has the potential to increase to £155 million ($292.04 million). OddsChecker is an odds comparison site that is hugely popular in the United Kingdom.
