Paddy Power owner Flutter hits jackpot in the US as FanDuel turns a profit

Retail revenue also increased 11% across this market. By the end of June, Flutter operated 607 retail outlets, down from 614 in the same month a year earlier, with 356 in the UK and 251 in Ireland. Picture Denis Minihane.

Paddy Power owner Flutter reported its US market leading brand FanDuel has fueled earnings growth for the group in the first six months of the year.

The betting giant said the company reached a “transformation point” as FanDuel turned a profit for the first time.

“The first half of 2023 marks a pivotal moment for the Group, with our US business now at a profitability inflection point, helping transform the earnings profile of the Group and significantly enhance our financial flexibility,” said Flutter chief executive Peter Jackson.

In a trading update, Flutter posted group revenue of £4.8bn (€5.5bn), up 42% year-on-year.

In the US, revenue grew 63% to $2.2bn (€2bn), driven almost completely by FanDuel and the acquisition of over two million new players.

This growth offset the losses coming from the FOX Bet and PokerStars businesses, the company said.

Last month, Flutter and broadcaster Fox Corporation decided to close the US sports betting platform Fox Bet.

Flutter said that Fox Bet contributed less than 3% to its revenue of $2.6bn in the fast growing US market last year.

Elsewhere, in Ireland and the UK, online revenue rose by 14% to over €1bn. By the end of June, Flutter operated 607 retail outlets, down from 614 in the same month a year earlier, with 356 in the UK and 251 in Ireland.

Retail revenue also increased 11% across this market. By the end of June, Flutter operated 607 retail outlets, down from 614 in the same month a year earlier, with 356 in the UK and 251 in Ireland.

Meanwhile, following clampdowns on unethical gambling practices, especially in the UK, the company invested £45m into safer gambling measures across the group in the first half of the year.

“The second half of the year has started well and we look forward to adding a US listing for Flutter shares later this year or early next year,” said Mr Jackson.