Rising customer numbers fuel revenues at sports betting business

Flutter Entertainment, owner of Leeds-based Sky Betting and Gaming, says it ended the year with record average monthly player numbers as it publishes preliminary results for the year ended 31 December 2022.

Reported group revenue climbed 27% to £7.7bn (2021: £6bn) with average monthly players up 26%, due to rapid US expansion, combined with the benefit of two acquisitions.

The group made a pre-tax loss of £275m (2021: £288m loss). Group adjusted EBITDA was up 4% to £1bn reflecting acquisitions in 2022. Strong organic growth was offset by £160m of known regulatory changes and safer gambling initiatives.

Peter Jackson, chief executive, said: “Flutter delivered a strong performance in 2022, continuing to execute on the strategic priorities we outlined last March.

“Growth in our recreational customer base delivered 2022 revenue growth of 27% and we ended the year with a record 12.1m average monthly players in quarter four.

“We are well placed to build on gold medal positions in our mature markets while we are delivering very strong growth in a range of attractive high growth markets.

“With our combined US business on track to deliver a positive EBITDA for the full year 2023 for the first time, the Group is currently at an earnings’ transformation point and we look forward to delivering future growth and progressing further against Flutter’s strategic priorities in the coming year.”

During 2022, the group says it launched a range of efficiency initiatives to further integrate its UK & Ireland brands.

The business also simplified team structures to enable it to operate more effectively. It explains these changes offset the higher levels of wage inflation to keep pay competitive.

In an outlook statement, Flutter adds that trading in the first eight weeks of the year is in line with expectations.