Flutter CEO Peter Jackson had no shortage of praise concerning the FanDuel results from the first quarter.
Average monthly players grew a chunky 46% to 3.4 million in the first quarter compared to last year. That helped revenue jump 112% to $1.1 billion in the quarter, the company reported Wednesday.
Jackson praised FanDuel retention rates, which he said helps contribute to that monthly player growth. It also helps to have what Jackson called the leading product in the market bolstered by its Same Game Parlay products.
“You can expect high levels of retention when you have the best sports product in the market,” Jackson said on its first-quarter trading update call.
FanDuel sports betting, iGaming shares increased
FanDuel’s additional customers had a big impact during the first quarter.
Sports betting saw a 14 percentage point increase in market share to 50% compared to last year. Sportsbook revenue jumped 147% with handle up 43% to $10.9 billion. Online gaming market share also increased 2 percentage points to 23% compared to the fourth quarter.
Jackson said most of the iGaming market share increase is coming from the direct casino acquisition channel and not just cross-selling sports betting customers.
The FanDuel Reward Machine, a free-to-play game that dishes out casino bonuses and can be played daily, is also driving that growth. Jackson said he is “really pleased” with how US players have engaged.
Confident in profit this year
FanDuel reported a 7% net revenue margin in the quarter and remains confident of the 12% the company guided toward for 2025.
Strong, too, is Flutter’s confidence in the FanDuel segment hitting profitability this year and beyond, Jackson said:
“And the question really, for us, isn’t specifically how much we make – it’s what the trajectory of the business will look like over the next subsequent years when we keep adding in layers of new customers, who will of course flip from costing us money to generating very significant contribution, and then that following through to enhance our profitability in future years.”
Still happy to add customers
FanDuel will continue to add customers while the cost to acquire them and the lifetime value dynamics remain as strong as they are, Jackson said.
Promotional activity has dropped in the US, but FanDuel is not focused on what its competitors are doing, he added.
The Ohio and Massachusetts launches drove a 20% jump in new customers. Considering there was only a partial month of Massachusetts online betting in the first quarter, Jackson expects to see more customer acquisition ahead of the NFL betting season.
FanDuel wants to add more through horse racing app
There are 33 states that can bet on the Kentucky Derby using the FanDuel Racing app. Jackson mentioned California specifically as one of the states, saying those eager to bet legally can do so this weekend.
FanDuel is giving out $20 free bets with signups.
“We hope it’ll be a big opportunity” for customer acquisition, Jackson said.
