FanDuel Q4 2021 Results: Lessons Learned

fan duel parent company flutter entertainment 4th Quarter Results Posted Tuesdaya bright spot for US business in an otherwise tricky time.

Flutter stocks crash Ten% after printing to 9,680pbThis was due to the slowdown in the growth of the European business.

However, FanDuel continues to dominate the US market, 31% Online gambling and game sharing.

1) Big growth, big cost

income from FanDuel Sportsbook When foxbet year of growth 113% To $1.9 billion.

it was almost 50% It outperforms its closest competitors, according to Flutter.

US business recorded EBITDA loss $326 million Flutter expects a similar loss in 2022. Before becoming EBITDA plus 2023.

2) FanDuel pushes the pedal

rivals like Caesars It may be retreating from the market, but FanDuel said it is leaning.

“It was the most aggressive start to the NFL season I’ve ever seen,” says CEO peter jackson Said. “People were buying steering wheel shares, but we were disciplined.

“Right now, our competitors are holding back on spending, but we’re leaning in. We see a very attractive investment opportunity from CAC to LTV. [customer acquisition costs to lifetime values.]”

It is the product that drives those lucrative economies. As Jackson said, Customers are voting with their feet. They may take other competitors’ free money, but keep coming back to the FanDuel app. ”

Consider this chart from New York Sports betting:

Eric Ramsey/PlayNY

3) The product is king

FanDuel recently surpassed all US sportsbooks. Islers & Credit app testing.

‘We have to be paranoid,’ said CFO Jonathan Hill“That’s why we continue to invest in our products.”

In that sense, Flutter spent most of the quarter improving its Same Game Parlay (SGP) product. This included more SGP in-play markets and the launch of SGPs for new sports such as college football.

The operator also continued to invest in its own odds origination. in short, 80% of college basketball is now priced in-house.

“The combination of better pricing precision and a higher percentage of handles coming from higher margin parley products means we generated 340 basis points more gross margin than our competitors during the fourth quarter. will,” the company said.

In other words, FanDuel $ 1,000,000 With a handle, it might be expected to make $80,000 Revenue comparison with competitors $46,000.

4) Flutter Still Considering US FanDuel Stock IPO

Flutter has been talking about taking a “small portion” of its FanDuel business public for nearly a year now. The company is still evaluating that option for several reasons, Jackson said.

For one thing, listings bring free marketing to your business.

“DraftKings got a lot of publicity from customers buying stakes in the business,” Jackson said.

FanDuel may also use its public equity to pay for marketing partnerships and pay staff compensation. However, given the current state of the market, don’t expect a move anytime soon.

“That’s not what we need to do,” Jackson said. “Obviously, we are monitoring the market at this time and the Board will continue to make assessments.”

5) Fox in chicken coop

of course, IPO The route is still somewhat blocked by Fox.Jackson said the two companies are heading to arbitration Junehas spent the last few months trying to settle the deal.

Fox has long claimed that it has the option to buy chunks of FanDuel at below-market rates.

“We know the value of the FanDuel business and our deal with Fox must recognize that.”

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