Peter Jackson, the CEO of Flutter Entertainment, said that the first half of the year was "pivotal" for the company's US business, which hit a "profitability inflection point."

 Peter Jackson, CEO of Flutter, said that group revenue rose 41.9% in the six months ending June 30, and the company also turned a net deficit into a profit.  Flutter added that a lot of this was because of how well its US business, the FanDuel Group brand, did.

 The brand has been stronger and stronger since it was bought by FanDuel in May 2018.  FanDuel started out as a daily fantasy sports site, but now it offers sports betting and an online casino in many states across the US.

 Investment in FanDuel coming in H2

 In H1, the US was Flutter's best performer.

 A good six months for operations in Europe

 Australia lets down

 Working down the balance sheet

 FanDuel US listing is coming up soon.

 Flutter CEO: FanDuel will invest in H2 with profits
 CEO Jackson said that the US business added more than two million new players in the first half, so this growth is unlikely to slow down. 

 Jackson observed, "The first half is a turning point for the group."  "Our business in the US is now at a point where it can start making money, which will change the group's earnings profile and give us a lot more financial freedom." 

 Flutter FanDuel
 FanDuel made more than £100 million in EBITDA in the first half. "The US did another great job."  We got more than two million new players at this time, solidified our position as the top in sports, and increased our share of igaming to 23%. 

 "The US firm made money in the first half, with FanDuel bringing in more over $100 million (£78.3 million/€91.1 million) in EBITDA.  This profit profile gives us a strong reason to invest heavily in the second half of the year as we work to make our client offering better all the time. 

 "Our strategy for acquiring players has always worked, giving us great returns on investment, adding even more value to our customer base, and making us more profitable in the future."

 The land of opportunity for Flutter 
 In the first half of this year, total sales was £4.81 billion, up from £3.39 billion in the same time previous year.  This amount included £3.00 billion from sports betting and £1.81 billion from gaming.

 Jackson said that Flutter's best part of H1 was definitely the US.  Revenue rose by 71.0% to £1.79 billion, with 98% coming from the FanDuel brand. Adjusted EBITDA went from a £132 million deficit to a £49 million gain.

 FanDuel betting site
 FanDuel kept growing across the US in the first half of the year.
 The amount of money bet on US sports went up 78.1% to £1.37bn, and the amount of money bet went up 42.5% to £15.55bn.  Flutter added that good sports outcomes and its expansion into new states helped with this.  The operator went live in Kansas, Maryland, Ohio and Massachusetts, meaning it is now live, either online or via retail, in 23 states across the US.

 Flutter added that the 51.3% increase in igaming income to £425m was in line with a 48% increase in the number of players.  The operator also said that the FanDuel Casino was able to gain market share in the first half of the year.

 The UKIE and International segments are still growing. 
 Outside of the US, revenue in the UK and Ireland rose by 13.7% to £1.24 billion, with the Betfair and Paddy Power brands leading the way.  Flutter's web business brought in £1.09 billion, while its retail division brought in £153 million.  £709 million of all UK and Ireland revenue came from sports betting, while £533 million came from gaming.

 Flutter added that online sales went up because they were able to recruit and keep a lot of World Cup users and keep focussing on increasing customer value.  Flutter said it saw the benefits of investing on products throughout its stores.

 Paddy Power
 The rise in the UK and Ireland was driven by Paddy Power and Betfair.
 As for its International business, total revenue jumped 84.7% to £1.17bn.  Gaming brought in about £845 million, and sports betting brought in about £315 million in the first half of the year.

 Flutter highlighted the ongoing benefit of the Sisal acquisition, saying this helped drive up Italy revenue.  Turkey, where Sisal powers the national lottery, performed strongly while the Flutter Edge brand in India pushed revenue up 54.0% in the country.

 Australia stumbles in H1
 Seemingly, the only real negative point for Flutter in the first half was the performance of its Australian business Sportsbet.  Here, revenue fell 1.8% year-on-year to £601m as sportsbooks stakes slipped 4.9% to £4.95bn. 

 Average monthly players with the Sportsbet brand in Australia were 7.0% higher, due to the retention of a pandemic-enlarged user base.  However, Flutter said revenue was down year-on-year as a result of “challenging” comparatives in 2022.

 Australian gambling
 Sportsbet, Flutter’s Australian brand, was the one weak performer in H1
 Revenue was 7% lower per customer, with Flutter saying this was most notable in racing when compared to the Covid-related peaks.  During this period, options for other leisure spend were significantly restricted.

 Rising costs fail to dent Flutter H1 success
 Turning attention to spending and Flutter’s expenses were higher across all areas.  Cost of sales climbed 48.4% to £2.01bn, while sales and marketing spend jumped 13.6% to £930m.

 Other operating costs were 43.3% higher at $983m, while depreciation and amortisation climbed 28.7% to £552m.  When also including £131m in finance expense, pre-tax profit reached £83m, compared to a £51m loss last year.

 Flutter received £45m in tax benefits during the half, meaning net profit was £128m.  This was in stark contrast to the £112m loss posted at the end of H1 2022.  In addition, EBITDA increased 76.3% to £765m, with a margin of 15.9.9%.

 US listing for FanDuel nears
 Aside from statutory results, Flutter also published adjusted results, which account for items that are separately disclosed.  These include costs related to the amortisation of acquisition-related intangible assets, transaction fees and associated expenses and restructuring and integration costs.

 The adjusted results only impact certain costs, EBITDA and net profit.  Adjusted depreciation and amortisation costs were £238m, meaning adjusted pre-tax profit was higher at £454m.  This was also 63.9% more than last year’s adjusted figure.

 Wall Street
Plans to list FanDuel in the US are ongoing
 Adjusted taxation costs were £34m, meaning adjusted net profit reached £420m, up 137.3% year-on-year.  In addition, adjusted EBITDA amounted to £823m, a rise of 72.9%.

 “The second half of the year has started well,” Jackson said.  “We look forward to adding a US listing for Flutter shares later this year or early next year.”