Revenue at Flutter, the parent company of Paddy Power, increased 6% year-on-year on a currency consistent basis in the first quarter as the betting giant added more than 1m additional customers amid continued growth in the US.
Flutter brought in revenue of £1.6bn during the first three months of the year, an improvement from £1.5bn in Q1 2021, while its average number of monthly players rose 15% from 7.7m to 8.9m in that time.
In the US, revenues at subsidiary FanDuel rose 45% year-on-year to $574m, covering for a decline of 3% in revenues outside America, with turnover down 8% in the UK and Ireland due to a sustained winning streak for punters and increased spending on gambling addiction initiatives.
FanDuel saw a 43% increase in customers following launches in New York and Louisiana in the first quarter and strong customer acquisition campaigns ahead of the Super Bowl and during the March Madness college basketball tournament.
Super Bowl Sunday in February was FanDuel's biggest ever day for new customers, with more 1.5m people betting with the company on the day while more than 19m bets were placed on March Madness.
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As a result of its expanded customer base, stakes made with FanDuel more than doubled to £5.7bn and revenue from its sportsbook was up 89% albeit with a lower net revenue margin of 4.1%.
In the UK and Ireland, customer numbers increased 15% while revenue declined 20%, with safer gambling measures costing an estimated £30m and customer engagement down compared to the first quarter of 2021 when Covid restrictions were in place.
In Australia, Flutter revenues rose 8% and customer numbers were up 10%, although the Australian operation managed "strong" player engagement and "good retention of the 2021 Covid-enlarged customer base," thanks to increased promotional spend.
Elsewhere, revenue in Flutter's international division was 5% lower, reflecting the company's temporary exit from the Dutch market, tax changes in Germany and the effects of the war in Ukraine, but the bookmaker saw strong growth in Canada, Brazil, India, Georgian and Armenia.
All Flutter's shops, including Paddy Power stores, were open during the quarter, with revenue at its UK stores down just 6% compared to the first quarter of 2019, but Irish stores still a quarter (24%) off pre-Covid revenues, reflecting a higher level of caution with respect to the pandemic.
"Outside of the US, our business performed well, adapting to the evolving regulatory and trading environment and reflecting the benefits of our global diversification," said Peter Jackson, CEO of Flutter.
"In the UK and Ireland we launched several new products in the quarter. I look forward to the imminent release of the UK Government's White Paper on its review of the Gambling Act.
"In Australia, Sportsbet delivered good growth from ongoing customer driven momentum, with excellent retention of players acquired in 2021. Our International business benefitted from strong performance in focus markets and we hope to complete the Sisal acquisition in Q3.
"With our enlarged recreational customer base, winning position in the US and ongoing focus on sustainable growth, our business remains well placed for the future."
Flutter now has some 3.6m customers in the UK and Ireland, 2.4m in the US, 915,000 in Australia, and just under 2m in its remaining international markets.
Photo: A dog awaits for his owner outside a Paddy Power stores in in Dublin city centre on St. Stephen's Day 2020. (Pic: Artur Widak/NurPhoto via Getty Images)
