Flutter publishes 2022 first half financial analysis

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Flutter publishes 2022 first half financial analysis

Flutter Entertainment has recently published its financial review covering the first half of the year, showing a 9% growth in group revenue.

The bookmaking corporation Flutter Entertainment has lately published its financial performance analysis that examined the first half of the year. The document showed a stable period of growth, with the headline figure being a total revenue uptick of about 9% compared to the same period the year prior.

Starting off, let’s take a look at the most important numbers. The group recorded a revenue of nearly 3.4 billion pounds, a 9% gain from last year’s 3 billion. That revenue growth is likely explained by the fact that they gained just shy of a million monthly customers, which at 8.7 million amounted to a 14% increase.

EBITDA, however, was down by almost 20%, now sitting at 476 million pounds. Profits after taxes have experienced a similar fate, as it went down by 42%, from 306 million pounds to 177 million. Furthermore, the earnings per share metric has been hit with even bigger losses, 43% to be exact, now recorded at just over 92 pence per share. The corporation blamed the negative numbers on high costs associated with the growth in the American market, as well as a few rough patches in Europe.

Breaking down all the statistics, the firm’s two sectors developed at a pretty close rate, with sports revenue growing by 10% and gaming revenue increasing by 8%. Conversely, the sports portion of the business still remains the dominant one, as it’s currently at 2.1 billion pounds, while the gaming one is barely at 1.3 billion.

Up next, the cost of sales was recorded at 1.35 billion pounds, which was measured as almost 40% of the total revenue. In contrast, last year’s costs amounted to only 36% of the total revenue, which is a 3.6% increase. Consequently, gross profit grew by only about half as much as revenue, going up by 5% to a bit over 2 billion pounds.

Continuing the chain from revenue to profit, total operating costs made up over 740 million pounds, including the 55 million pound sum of corporate costs. That results in an EBITDA of 476 million, which as mentioned before, is 19% down from the prior year. Finally, after depreciation and amortization of 143 million pounds, a net financial expense sum of 57 million and 100 million in taxes, the corporation is left with an adjusted profit of 177 million pounds, which is down by 42% in comparison to the last year’s same period, as mentioned before.

Next up, let’s take a brief look at each of the business’s major operating market groups, listed as the US, the UK and Ireland, Australia, and lastly, International markets.

Firstly, the States. The market experienced explosive growth, as average monthly consumers went up by almost 50%, now recorded at 2.2 million. Total revenue from the country amounted to over a billion pounds, another massive 50% increase. Despite all the growth the company still saw negative adjusted EBITDA and adjusted operational profits figures, which it attributed to higher marketing spending and other costs associated with growth, as the US is not yet a fully established market.

Secondly, the operator’s home jurisdiction, the UK and Ireland. It also saw growth in player numbers, however, it managed to keep positive profit statistics. Average online players per month rose by 12% to 3.7 million, making a revenue of 956 million pounds. Additionally, the retail sector in the countries also contributed measurably, making for a total revenue of just under 1.1 billion dollars. Finally, the operating profits of the market added up to 258 million pounds, which is still a decrease of 13% from last year.

Australia was the only major market that experienced profit growth, as it made the company 206 billion pounds which is a 9% increase from the prior year. That is likely explained by the close to proportional growth of active players by 10%, now recorded at just shy of a million.

Lastly, the corporation mentioned a strong revenue growth in their “consolidate and invest” markets, such as Armenia, Canada and Brazil. Unfortunately, those growths were far offset by turbulence in some major European markets, such as the market exits of the Netherlands and Russia, as well as tax changes in Germany. Consequently, the group lost 42% of its operational profits compared to last year, although the figure is still in the positive.

Finalizing the report, the firm stated a pretty steady net valuation of current assets, sitting at 10.2 billion dollars, which is a small 5% lower than last year. Debt, however, grew by over 300 million pounds and now the company owes over 3 billion pounds.

Commenting on its performance, the business stated that they are pleased as they had a respectable showing with a lot of reinvestment to grow presence in key markets. They added that growth in the United States market has been accelerating, and that they are on track to achieving their strategic goals and objectives in the region.