American business Flutter has reached its "profitability inflection point."

Flutter Entertainment has announced that its U.S. business has reached a profitability inflection point, with FanDuel generating $100 million (£82 million) in adjusted EBITDA. Following this success, the company expressed confidence in its financial growth strategy, which includes mergers and acquisitions in other regions around the world.
In its interim results for 2023, Flutter reported group revenue of £4.8 billion ($5.8 billion), marking a 38% increase compared to the previous period. The company attributed these results to strong performance in the U.S. and positive trends in the UK, Ireland, and international markets, as well as the addition of Sisal in August 2022.
Sports betting revenue rose by 39% to £3 billion ($3.6 billion), while gaming revenue reached £1.8 billion ($2.2 billion), up 38% year-on-year. The average monthly user count on the platform also grew by 28% over the same period, surpassing 12 million users.
Flutter noted that the group is in a "profit transformation" phase, with adjusted EBITDA increasing by 72% to £823 million ($1 billion). This significant improvement was driven by operations in the U.S., where the figure stood at £49 million ($59 million), a turnaround from a loss of £132 million ($161 million) in the first half of 2022.
Excluding the U.S., adjusted EBITDA grew by 24%, bolstered by strong growth rates and the addition of Sisal, which performed well in the first half of the year.
Flutter's post-tax profit was £128 million ($157 million), a significant recovery from a loss of £112 million ($137 million) the previous year, despite incurring £314 million ($385 million) in amortization expenses for acquired intangible assets.
Commenting on the results, CEO Peter Jackson highlighted the group's increased financial flexibility following a strong first half. He stated, "The first half of 2023 marks a significant moment for the company, as our U.S. business is now at a profitability inflection point. This will help reshape the group's revenue profile and significantly enhance our financial flexibility. With our divisions and their brands benefiting from the competitive advantages provided by Flutter Edge, the performance during the reporting period was exceptionally strong. Our customer base has grown to over 12 million monthly users."
Regionally, as previously noted, operations in the U.S. have reached a profitability inflection point, with FanDuel's adjusted EBITDA at $100 million (£82 million) and revenue increasing by 63% year-on-year to £1.8 billion ($2.2 billion).
Revenue from sports betting surged by 70% compared to the same period last year, reaching £1.4 billion ($1.7 billion), while gaming revenues grew by 44% to £425 million ($520 million). FanDuel accounts for 98% of total U.S. revenue, and its adjusted EBITDA more than offsets losses from PokerStars and FOX Bet, the latter of which has recently begun a phased shutdown.
The progress made in the U.S. comes as Flutter continues to work towards a potential listing by the end of 2023 or early 2024. Jackson remarked, "The U.S. has delivered another exceptional performance. During this period, we acquired over two million new players, strengthened our leadership in sports, and increased our market share in the gaming sector to 23%. This momentum provides us with a clear platform for significant investments in the second half of the year as we aim to continuously enhance our customer offerings."
Outside the U.S., growth occurred despite challenging regulatory factors, with revenue on a constant currency basis increasing by 8% and EBITDA rising by 4%.
Earlier, the American Gaming Association announced the names of the new inductees into its Hall of Fame.