Peter Jackson, CEO of Flutter Entertainment, was effusive in his praise of FanDuel's 2023 results, the first full year of positive yearly adjusted EBITDA for the US brand.
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 On Tuesday, March 26th, Flutter revealed its earnings for 2023, which saw a group revenue increase of 24.7% to $11.79bn (£9.32bn/€10.87bn) from 2023 levels.

 The success that Flutter had in 2023 was primarily due to its operations in the US.  According to Jackson, Flutter has taken the lead in the US industry because to FanDuel.

 Net gaming revenue market share increased from 43.2% in 2022 to 53.4% when considering all US enterprises.  With a growth of 19.0% year-over-year, FanDuel added more than 3.7 million betting and igaming players in 2023.

 Additionally, adjusted EBITDA in the country was $167 million in 2023, a considerable improvement over the $263 million loss recorded in Flutter's fiscal year of 2022.

 This was also the first year where further adjusted EBITDA came out positive for the business.  The increasing trend in adjusted EBITDA margin continues until 2023, when it will reach 3.7%, up from -8.2% in 2022.

 Jackson gushed on Flutter's US performance, especially in the igaming sector, on the company's earnings call today (26 March).

 Paul Edgecliffe-Johnson, chief financial officer, claimed that since January 2024, Flutter and FanDuel had dominated the US industry for online casinos.

 An incredibly encouraging trend is developing in the industry, according to Jackson.  I am absolutely thrilled by the team's progress.

 "We are eager to see where the company can go because some of the innovations have only just been deployed."

 Success in the US is being driven by FanDuel's strong offering.
 According to Jackson, the product offered by FanDuel is the main reason why US clients prefer using their services rather than those of DraftKings and BetMGM.

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 Flutter's 2023 revenue was $11.79 billion, thanks in large part to Fanduel.
 Jackson said that FanDuel's parlay offering and other products are a big reason why Flutter is so successful in the US and how it takes use of its best times of year there.

 "The NFL and NBA are really heating up in Q4 and Q1, so those are two of our most important quarters," Jackson continued.  Our parlay items are top-notch, which is why we stand out.  Our net gaming revenue (NGR) share is something we're really proud of.

 Thanks to our precise pricing and parlay penetration, we are able to earn a larger profit margin, even though we provide our clients with the market's finest prices.  We couldn't be happier with how our product turned out.

 2024 Flutter FanDuel M&A targets
 The Serbian operator maxbet was 51% owned by FLUTTER as of September.
 The Serbian omnichannel sports betting and casino company was acquired by Flutter for €141.0 million in September 2023, with an initial 51% ownership.  Additionally, the deal specifies that in 2029, Flutter will have the chance to acquire the remaining 49% of MaxBet.

 In doing so, it bolstered its expansion ambitions and gained access to the regulated Serbian market.

 When asked about Flutter's plans for future mergers and acquisitions, Edgecliffe-Johnson and Jackson were quick to stress that the company would only buy companies it deemed to be market leaders.  Flutter has revised its medium-term leverage target from 1.0x-2.0x to 2.0x-2.5x net debt, and only then will it veer away from its previous ambition.

 "We are happy to be flexible if we see attractive acquisitions," Edgecliffe-Johnson remarked.  We have not changed our strategy of aiming to build the largest feasible company.

 Gaining new clients is a company's top financial aim.  True surplus capital will go back to the shareholders.

 Flutter bought Sisal, an Italian market leader in online gaming and lotteries, in 2022, and that deal paid out handsomely in 2023.

 With a total of $1.22 billion in 2023 sales, Sisal accounted for 43.4% of Flutter's International sector—defined as all markets outside of the US, UK, Ireland, and Australia—revenue.

 "Sisal did an excellent job of getting people who played on land to play online," Jackson explained.  It accomplished this by virtue of its excellent products and the inherent cross-selling opportunities they presented.

 Also, in a market where ads are scarce, there's a great approach to entice lottery players: a funnel.  The chance to cross-sell is enormous.

 "Wide variety" for the remainder of the global
 Jackson admitted that 2023 had been a "mixed bag" for the International segment, but despite success in Italy and a 13.7% increase in UK and Ireland sales to $3.05bn, Flutter's performance in Australia somewhat hurt its earnings.

 Only in 2023 did Australia's section see a decrease.  Flutter acknowledged challenges to its Sportsbet operator, which led to a 7.1% decline in revenue to $1.45 billion, even though the company claimed a 45% share of the Australian market.

 As evidence, Jackson pointed to tighter regulations, higher taxes, and the fact that player spending in Australia had fallen to levels seen before the COVID-19 pandemic.

 However, in Jackson's opinion, there is some good news regarding Flutter's adventures in Australia.  "Clearly, the business has come down significantly," he explained.

 In Australia, we have an outstanding group of people working on innovative projects that will benefit the entire globe.  Parlays have grown from the efforts of a few Australian teams, so they're making a difference all over the world.