Published
Financial

Analyst: Flutter "prepared for eventual legislation"

Following Flutter Entertainment’s interim results, Russell Pointon, Director for Investment Research firm Edison Group, has offered his analysis of the financials. 

Flutter Entertainment Financial Report Web Image

Flutter saw losses of £288m (£385.8m) before tax but on an adjusted basis, while pro forma profit fell by 22% to £620m. For Pointon, this is a result of expansion-related debt repayments and customer-friendly sports results. 

He commented: "The lower profit was despite a pro forma revenue increase of 17% to over £6bn, while average monthly customers grew by 23% to 7.6 million. Flutter’s proactive expansion into the US market continued in 2021, with its FanDuel product achieving a 31% overall market share in Q4. This healthy figure is supported by expansion into new states, including Michigan, Virginia, Arizona and Connecticut. Expansion comes at a cost, however, as the group expects to reach a positive contribution after 12-24-months.

"In the UK and Ireland markets, Flutter retained a 29% market share and recorded a modest online revenue growth of 3%. This was influenced by a challenging environment in 2021, which saw a run of customer-friendly sports results cost the division £232m in revenue, while reduced Covid-related restrictions further saw an overall decline in betting and gaming activities.”

For the year ending 31 December 2021, Flutter achieved revenue of £6.04bn, which shows an increase of 37% year-on-year. 2021 also saw the development of Flutter’s new sustainability strategy, titled the “Positive Impact Plan.”

It details the way in which progress can be achieved in areas such as safer gambling, and performance measurement relating to responsible industry practice.  

On this topic, Pointon commented: "Responding to the considerable impact of regulation on business, Flutter yesterday announced a new sustainability initiative, the 'Positive Impact Plan.' As the UK Government seeks to introduce new gambling legislation later this year, Flutter has taken a series of steps to reduce dangerous gambling activity.

"The group is aiming for 75% of players to use at least one of its safer gambling tools by 2030. One measure towards achieving this was the announcement that 10% of staff bonuses will be tied to the effectiveness of addiction prevention. Despite a somewhat challenging year, the group’s continued expansion will in time produce results and a comprehensive and proactive strategy should aid Flutter’s preparedness for eventual legislation."

Premium+ Connections
Premium
 
 
Premium
 
Premium
 
Premium
 
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium
 
Premium Connections
Consultancy
Executive Profiles
Flutter
Galaxy Gaming
Churchill Downs Incorporated
Oddsworks
Follow Us

Global Gaming Awards Asia-Pacific: Going live

The Global Gaming Awards Asia-Pacific are set for their firs...

Preview: SiGMA Asia 2024

SiGMA’s annual Asia summit comes back to Manila – signif...

Company profile: Praxis Tech

Being payments ready in Asia - A call to action for iGaming...