Paddy Power owner Flutter posts loss of $1.2bn despite revenue surge 

Along with Paddy Power, Flutter Entertainment also owns Pokerstars, Betfair, and FanDuel. 

Paddy Power owner Flutter Entertainment saw revenues surge in 2023 driven by its flagship betting operations in the US but still posted a loss of over $1.2bn (€1.1bn). 

The Irish company posted $11.8bn (€10.8bn) in revenue during 2023, an increase of 24.6% compared to the previous year, with their average monthly players growing to 12.3 million from 10.24 million.

The group’s 2023 earnings before interest, taxes, depreciation, and amortisation stood at $1.87bn (€1.87bn) - 45.4% year-on-year increase.

However, despite the increasing revenue and players, Flutter posted a net loss of $1.2bn.

The company said it was impacted by non-cash charges of $1.68bn (€1.54bn) which included a $725m (€668m) PokerStars trademark impairment. Flutter said in the last few months of the year, it recognized an “intangible asset impairment loss” of $725m in sales and marketing expenses related to PokerStars trademark within the international segment.

The company’s flagship US offering FanDuel saw revenues increase by over 40%. FanDuel acquired over 3.7 million new sports betting and iGaming players in 2023, 19% more than the prior year.

Between the start of the year and March 17, the company has seen revenue increase by 23.4% which was driven by a 55.6% increase in US generated revenue as a result of record Superbowl engagement.

For this year, the company is expecting US revenue to grow to $6.2bn (€5.7bn) by the end of June. Revenue generated outside of the US is expected to grow to just over $8bn (€7.37bn).

Chief executive of Flutter Entertainment Peter Jackson said the company delivered a “strong” performance last year with its “number one position in the US” transforming its earnings profile.

Last year, Flutter Entertainment made the decision to delist from the Euronext Dublin exchange and seek a listing in New York as part of a plan to prioritise its US offerings.

Its listing on the New York Stock Exchange went live on January 29.

“We are working towards a shareholder vote on May 1, 2024 to approve our primary listing move to NYSE,” Mr Jackson said.

The company also lists on the London Stock Exchange.