Sky Bet owner Flutter Entertainment sees no signs of consumer slowdown

The group, which employs around 1,700 staff in Leeds, reported adjusted EBITDA of £476m for the six months ended 30 June 2022, which it said was in line with expectations.

Flutter opened a £15m hub in Leeds last year, which acts as a centre for innovation in areas such as product development, software engineering, and research and insights.

In the UK and Ireland revenue declined 4% which the company said was a result of its proactive safer gambling actions and the prior year Covid-related increase in player days, which has now moderated towards pre-Covid levels.

The company said there was no discernible signs of a consumer slowdown currently, but it was closely monitoring key spend indicators given the uncertain macro economic outlook.

The statement added: "The significant actions taken in 2021 to improve the sustainability of our business in advance of the Government’s review of the Gambling Act had an annualised revenue impact of £48m during H1, in line with previous guidance.

"While the delay to the publication of the UK Gambling Act Review White Paper has been disappointing, our proactive safer gambling actions position us well for the future. In Ireland, we welcome and fully support the recent progress towards regulation, and we are meaningfully contributing to the legislative process."

In the first half, Leeds-based Sky Bet released a number of improvements to its pre-game sports betting product, including the launch of ‘BuildABet’, which has already been used by nearly one-third of football customers.

Further enhancements are planned for the second half. The scale and diversification of the group have been transformed during the last three years with the US accounting for more than one third of group revenue in the second quarter, Flutter said.

"FanDuel has strengthened its clear leadership position in US online sports betting, gaining market share through a combination of superior product, efficient customer acquisition and strong operational execution.

"Our US business was profitable during Q2 and remains firmly on track to be EBITDA positive for the full year 2023."

Peter Jackson, Chief Executive, commented: “The first half of 2022 was positive for the group with significant progress made against the strategic objectives we outlined in March.

"We expanded our recreational customer base by over one million players in the half and increased the proportion of customers using safer gambling tools to over one third.

"We are particularly pleased with momentum in the US where we extended our leadership in online sports betting with FanDuel claiming a 51% share of the market and number one position in 13 of 15 states, helping contribute to positive earnings in Q2.

"We remain firmly on the path to profitability in 2023, driven by our compelling customer economics and disciplined investment.

"Outside of the US, the business remains well positioned thanks to its leadership positions in its mature markets and the investment we are making in attractive, high growth markets such as India, Canada and Brazil.

"In the UK, while the delay in publishing the Gambling Act Review White Paper has been disappointing, we are confident that the safer gambling changes we have already made to date position us well for the future.

"In Australia, we delivered another excellent performance with revenue and players continuing to grow. We were also delighted to welcome Sisal to the Group earlier this month, a business that performed strongly during H1.

"The second half of the year has started well and we look forward to the start of the football seasons in both the US and Europe. Being part of the Flutter Group provides unique strategic advantages to our portfolio of brands, giving access to expertise, technology and resources to drive performance and capitalise on further growth opportunities we see ahead.”

Last year, Leeds-based Sky Betting & Gaming revealed it had developed its own version of the Government’s “KickStart” scheme to help young people from deprived neighbourhoods start a career in the fast growing technology sector.

Steve Birch, the CEO of Sky Betting & Gaming, said the company was targeting its recruitment drive so it can represent all communities around its base in Leeds.

He made the comments at an event to celebrate the opening of the company’s new office in Wellington Place, Leeds.