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1. Flutter Entertainment
FINANCIALS: The group’s revenue surged 18.4% to $7 billion in the first half of 2024, with adjusted EBITDA increasing an impressive 27% to $1.25 billion during the same period.
STRATEGY & IMPACT: Flutter continues to leverage mergers and acquisitions to expand its market share in established regions, complemented by strategic acquisitions that accelerate its entry into emerging markets.
GEOGRAPHIC REACH: Leading the industry in the US, UK&I, Italy, and Australia, Flutter identifies markets such as India, Brazil, and the Central and Eastern Europe (CEE) region as having substantial growth potential.
INFLUENCE AND LEADERSHIP: Recognizing the US’s pivotal role in future growth, Flutter transitioned its primary stock listing to New York in May. The company is also at the forefront of promoting safer gambling practices.
For the fifth consecutive year, this unstoppable online giant has claimed the top spot in the EGR Power 50. Given Flutter’s unrivaled scale, superior products, and internal expertise, its brands continually excel, earning their place on the podium.
“We are significantly larger than our nearest competitors,” CEO Peter Jackson stated at the company’s Investor Day in September. He emphasized the significant advantages that Flutter’s scale provides, which other companies lack.
Jackson’s confidence is well-founded, with Flutter boasting a market capitalization of $47 billion (£37 billion), 32 million active customers, and forecasted full-year (FY) 2024 revenue of approximately $14 billion, alongside an adjusted EBITDA of around $2.5 billion.
In the US, FanDuel leads the online sportsbook market with a 41% share as of Q3 2024, based on gross gaming revenue (GGR). It also saw an average of 3.5 million monthly US players in Q2.
FanDuel maintains its leading position through unmatched brand recognition and cost-effective player acquisition strategies, alongside a superior product offering that enhances retention. Its structural gross revenue margin stood at 12% in H1 2024, significantly outperforming the market average of 8.1%. Executives are optimistic about eventually reaching a structural gross revenue margin of 16% (with a 12% net revenue margin). Furthermore, effective cross-selling and user acquisition techniques have propelled FanDuel to secure a 25% market share in the US online casino sector by Q3 2024, reinforcing its competitive advantage.
In the UK and Ireland (UK&I), Flutter continues to lead with a 30% market share, driven by Sky Betting & Gaming and Paddy Power. Although FanDuel garners much attention (with only nine of the 152 slides at the Investor Day focused on UK&I), this division still contributed 26% of the group’s revenue last year. It remains a profitable entity, with the recent announcement that UK&I CEO Ian Brown will be succeeded by PokerStars head Kevin Harrington.
Meanwhile, Flutter is bolstering its presence in Italy through the €2.3 billion acquisition of Snaitech in September, as well as signaling its aspirations in Brazil with a $350 million, 56% stake acquisition in Betnacional’s parent company NSX Group. Who will bet against Flutter clinching a sixth consecutive title?
If you are fortunate enough to be ranked as a Power 50 operator, ensure your spot at the Power 50 Summit next April.
The post EGR Power 50 2024: 1. Flutter Entertainment first appeared on EGR Intel.
