Flutter, the parent company of online betting platform FanDuel, reportedly saw a setback in its stock value Thursday (Nov. 9) after revealing disappointing third-quarter earnings.
However, the company remains steadfast in its claim to the top spot in the sports betting market in the United States, backed by its strong financial performance and market share, CNBC reported Thursday (Nov. 9). The stock had recovered slightly Friday and was trading at $75.04 at 4 p.m.
Flutter CEO Peter Jackson told the media outlet that the company has a billion dollars more in revenue in the United States than its competitor, DraftKings, solidifying its position as the market leader. Although the drop in stock value may have raised concerns, Flutter’s revenues in the U.S. have grown by 20% year over year to $820 million, accompanied by a 38% increase in average monthly players.
Jackson attributed the softer-than-expected top line to various factors, including a streak of customer wins, foreign currency headwinds, a slowdown in Australia and tax changes in India, according to the report.
Despite these challenges, Flutter remains optimistic about its market position and believes that the measuring stick for determining the market leader should be based on net gaming revenue rather than gross gaming revenue, the report said.
According to Jackson, FanDuel holds the top spot with a 47% market share of net gaming revenue, surpassing DraftKings, per the report. In addition, FanDuel’s gaming revenue has seen impressive growth, increasing by 52% year over year, making it the fastest-growing brand in the iGaming or online casino space.
DraftKings recently claimed the crown in online betting, combining iGaming and online sports betting, excluding retail sports wagering, the report said, citing data from gaming consulting and market research firm Eilers & Krejcik. However, the research report that ranked DraftKings as No. 1 was issued before all states reported their gaming numbers, per the report.
Another competitor in the space, MGM Resorts International CEO Bill Hornbuckle, has also asserted that his company has consistently been No. 1 in iGaming and will continue to protect its position, per the report.
https://www.cnbc.com/2023/11/09/fanduel-parent-flutter-stock-falls-after-disappointing-earnings.html
https://www.pymnts.com/earnings/2023/flutter-attributes-soft-earnings-to-customer-wins-and-currency-headwinds/