In its latest trading update for the third quarter of 2020, Flutter Entertainment plc has stressed its claim to be the number one US sportsbook provider, claiming a 46 percent market share of online sportsbooks and a total online share of 29 percent.
The parent of FanDuel also announced a better-than-forecast addition of more than 450,000 new customers with over 1.8 m active customers during Q3. And with major multi-year tier 1 media partnerships signed, the overall US GGR is now projected to hit more than $1.1 billion in 2020 with over $850 million in NGR.
However, increased investment in the acquisition of US customers is projected to result in an EBITDA loss of $212 m to $239 m compared to previous guidance of $186 m to $212 m.
The Chief Executive, Peter Jackson, commented: “Flutter’s performance in the third quarter exceeded our expectations in both sports and gaming. Our strong trading continued as we grew market share in key regions while retaining our commitment to safer gambling practices.
“We are very pleased to have retained our position as the number one online operator in the US, where FanDuel has made significant progress against each of its key priorities. We have enhanced the customer experience, secured further strategic media partnerships and acquired more new customers than anticipated. We are on track to generate more than $1.1bn of GGR in the US this year, which will mark a major ‘first’ for an online operator.
“Our US business continues to go from strength to strength. During the quarter revenue increased by 82% to £161m ($213m) with over 1.8m real-money active customers engaging across all our US platforms. Sportsbook stakes grew 155% in Q3 to £1.25bn ($1.66bn) with stakes in existing states more than doubling.”
Net sales margin was 2.1 percent, a decrease from 5.2 percent in Q3 2019, according to Jackson, indicating increased customer acquisition investment on the back of better-than-projected new player participation in both existing states and the three new states introduced ahead of the NFL season.
He said: “In addition, more than half of the margin reduction reflected strategic investment ahead of the return of sports, as we doubled down on popular promotions such as FanDuel’s pioneering ‘Spread the love’ campaigns and ‘Odds Boost’ offers. As a result, sportsbook revenue was up 3 percent.”
US gaming revenue rose 299 percent to $82 million, indicating excellent customer engagement, said Flutter. During the quarter, average daily clients increased more than five times, with both direct and cross-selling performing well following the return of sports.
With average daily customers up 112 percent, TVG, its racing company, continued to enjoy strong momentum. This helped drive combined sales growth of 54 percent across the TVG and daily fantasy sports businesses of the group.
Strong quarter in the US with revenue increasing 82% to £161m. We retained our #1 position in the online sportsbetting and gaming market. Customer acquisition exceeded expectations and we expanded our reach further by securing additional, long-term, major media partnerships. pic.twitter.com/WsjTwWQ8CC
— Flutter plc (@FlutterPLC) November 11, 2020