Flutter’s Q3 2022 Performance: Strong US Growth and Regulatory Outlook
After Flutter unveiled its financial performance for the third quarter, industry expert Lara Martinez provided insights on the company’s outlook.
Martinez, an analyst at Third Bridge, remarked on Flutter’s US approach, market dominance, and the possible effects of the UK gambling legislation white paper. This came on the heels of Flutter reporting £1.89 billion ($2.18 billion) in revenue for Q3 2022, a 31% surge compared to the previous year.
“Traditionally,” Martinez noted, “economic downturns haven’t significantly altered expenditures on gambling or sports wagering. Nevertheless, a protracted, more severe recession could ultimately influence consumer discretionary funds.”
She elaborated, “Flutter’s triumphant US approach is anticipated to persist, but there are noticeable voids in its casino product portfolio. The primary hurdle for Flutter is upholding its current market position. Our specialists foresee a more segmented US market moving ahead. BetMGM or alternative operators could introduce comparable sports offerings.”
Regarding UK regulations, Martinez appended, “The consequences of the UK government’s gambling legislation white paper are projected to be negligible on Flutter, as it’s primarily targeting casual players instead of high-roller players.”
Flutter’s robust third-quarter figures were driven by 82% expansion in the US market (reaching £598 million) and the incorporation of Sisal. Sports wagering revenue constituted £1.14 billion of overall revenue, with gaming revenue comprising the remaining £748 million.
The head of Flutter Entertainment, Peter Jackson, remarked on the company’s performance: ‘Flutter experienced a remarkable third quarter, with both income and monthly engaged individuals increasing by 11% compared to the same period last year.’
‘The energy in the US market since the NFL season commenced in September has been very encouraging, with an average of over a million users every Sunday during NFL games. Additionally, we are observing heightened customer participation following the introduction of our well-received parlay offering and the start of the NBA season.”