Flutter CEO: More Than 1 Million FanDuel Players On Average NFL Sunday

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FanDuel is doing seven figures on NFL Sundays, and not just on the financial side.

In Wednesday‘s trading update, Flutter CEO Peter Jackson said FanDuel Sportsbook is averaging 1 million players for NFL betting on Sundays in the US.

Jackson said he is “really pleased” with the performance of the US segment in an interim trading update:

“In addition, we are seeing an increase in customer retention rates as our parlay products continue to grow in popularity, boosted by the start of the NBA season. The ongoing momentum in our US division has led to an upgrade to our outlook for the year, underpinning our confidence that we will be profitable for 2023.”

FanDuel success leads to revenue upgrade

FanDuel now expects US revenue to fall between $2.95 billion and $3.2 billion for all of 2022. That is an additional $100 million of upside from the prior range of $2.85 billion to $3.1 billion.

That is after generating $700 million in third-quarter revenue. That makes the US Flutter’s largest business division, with its sportsbook taking a leading 42% market share in the quarter.

Adjusted EBITDA loss from the US should still be between $300 million and $360 million. That range is inclusive of the costs of an earlier than expected Maryland sports betting launch.

The continued US momentum underpins Flutter’s confidence in profitability for 2023, the company said. FanDuel will continue to push to acquire “as many customers as we can” to support the push to profitability, Jackson said.

Few specifics offered with presentation next week

Flutter’s management team did not share many specifics on the analyst call, with the FanDuel Capital Markets Day scheduled for next Wednesday.

Jackson and CFO Jonathan Hill did give some additional insight not found in the trading update:

Flutter takes victory lap on FanDuel valuation

The long-standing disagreement between Flutter and Fox is mostly over after an arbitrator found FanDuel should be valued at $20 billion. That puts Fox’s option for an 18.6% stake at $4.1 billion today.

“This vindicates our position on the matter, with FanDuel valued at $20 billion based on its fair market value at 3 December 2020 and provides important clarity on the significant cost required to buy into the number one US gaming business.”

Still up in the air is whether Fox has any right to participate in a Flutter IPO. That should be decided early next year, but do not expect FanDuel to spin off any time soon.

Jackson said it is “very difficult” to picture an IPO in the current market.