{"id":2006,"date":"2021-04-29T10:00:46","date_gmt":"2021-04-29T17:00:46","guid":{"rendered":"https:\/\/wagers.com\/staging\/4285\/?p=2006"},"modified":"2021-11-09T10:05:32","modified_gmt":"2021-11-09T18:05:32","slug":"fanduel-outpaces-fox-at-flutter","status":"publish","type":"post","link":"https:\/\/wagers.com\/staging\/4285\/news\/fanduel-outpaces-fox-at-flutter\/","title":{"rendered":"FanDuel outpaces Fox at Flutter"},"content":{"rendered":"

Flutter trading update<\/h3>\n

The top line<\/strong><\/h4>\n

Revenue up 33% in constant currency terms, sports up 41%, gaming up 22%. UK & Ireland up 35%, Australia up 59%, international up 7% and US up 135%, maintaining number 1 position in the market. Note, this was without almost any land-based contribution as the shops in the UK and Ireland remained closed for the entire period.<\/p>\n

In the US, Michigan and Virginia performed strongly on acquisition with more than 900,000 new customers and gaming revenue increased 146% to \u00a399m ($137m).<\/p>\n

Company said Q2 will see accelerated sports growth, but casino will come up against tough comparatives from prior year period.<\/p>\n

Fox hole:<\/strong> US revenues up 135% to \u00a3288m ($396m) in the quarter, FanDuel generated 91.6% of the total (vs. 89.1% FY 2020), FOX Bet (including PokerStars US) accounted for 8.4%. When asked about the performance of FanDuel and FOX Bet\u00a0 brands and the latter\u2019s higher operating and acquisition costs, group CEO Peter Jackson said FanDuel benefits \u201cfrom TVG and fantasy verticals contributing strongly, as well and really high volumes of FTDs (first time depositors) coming through.\u201d<\/p>\n

FOX Bet\u2019s technology is also not as good as FanDuel\u2019s, \u201cit operates on a legacy platform that means customer acquisition doesn\u2019t perform as well and we don\u2019t get the same returns from it. Fixed costs are higher and lifetime values are lower.\u201d<\/p><\/blockquote>\n

Leave it to arbitration:<\/strong> Flutter wouldn\u2019t discuss how much disruption the lawsuit initiated by Fox Bet could cause its US business. The arbitration process both companies entered into is confidential. \u201cIt\u2019s standard procedure in the US and we understand that\u2019s how it\u2019s done. FOX Bet is a very important partner and we\u2019re delighted with how both brands are performing.\u201d The group didn\u2019t provide further comment on a possible US listing for FanDuel.<\/p>\n

National share rise:<\/strong> Online betting market share hit 36% in Q1 with sportsbook revenues 227% higher, TVG horse racing and daily fantasy sports verticals grew 51% with stakes up 235%. The group is now live in 10 states compared to four in Q1 2020, mature player cohorts in states like New Jersey were very encouraging with staking growth of 93% in Q1.<\/p>\n

German hit: <\/strong>Flutter\u2019s international revenue grew 7% in the quarter, but the regulatory changes in Germany ahead of the introduction of the Inter-State Gambling Treaty this Summer \u201cremained significant and would cost \u00a320m in EBITDA\u201d going forward.<\/p>\n

No Oz certainty: <\/strong>Australia operated in a \u201cnear normal\u201d trading environment during the quarter. However, the group cautioned against using the market as a \u201clead indicator for how markets might perform as lockdown restrictions lift.\u201d Sportsbet benefited from strong growth in monthly customer activity (+43%) and strong levels of staking (+46%). This \u201cvolume-led growth, and a 100 basis points expansion in net revenue margin to 11.4%, resulted in a net revenue increase of 59%,\u201d the group said.<\/p>\n

Early days in UK & ROI: <\/strong>The UK\u2019s first step towards reopening were also too early to make any assumptions and \u201cit was difficult to draw comparisons, but the market performed well in Q1, especially Cheltenham and the Grand National.\u201d Some impact to volume is expected due to consumers \u201cbeing out and about\u201d in the warmer weather, \u201cbut we\u2019ve got resilient brands in sports and casino. It stressed there remained much uncertainty and it was difficult to base UK forecasts on Australia\u2019s activity levels.<\/p>\n

\u201cThere are many factors: the effects of re-openings, Brexit will also have an impact on the UK economy, that will influence customer patterns and how they consolidate.\u201d<\/p><\/blockquote>\n

Migration to online channels continued, Sky Bet revenues grew 35% and Paddy Power Betfair online 36%. Gaming revenues grew 41% thanks to improved live casino content, including the roll out of Sky Bet\u2019s live dealer proposition \u201cSky Vegas Live\u201d.<\/p>\n

Check out these additional news articles on Earnings + More today:<\/h3>\n