The parent company of Australia’s leading online sportsbook, Sportsbet, says average player spend in the Australian market has now fallen back to pre-COVID levels as challenging market conditions continue to bite.
The update formed part of UK gaming giant Flutter Entertainment’s FY23 financial results, which showed Sportsbet revenues dropping by 7.1% year-on-year to US$1.45 billion and Adjusted EBITDA by 27.0% to US$348 million.
This was despite average monthly players increasing by 1.9% throughout the year to 1.1 million, driven by high retention levels.
“Average spend per player has however reduced back to pre-COVID levels,” the company said. “We have also seen a softness in the racing market across the second half of 2023, which we expect to persist through 2024.
“We expect the challenging market, along with increased regulatory and compliance costs, to reduce Australian profitability further in 2024. However, we believe Sportsbet’s scale, 45% market share, and leadership in brand and product, position us well for the future.”
The company added that the annualization of point of consumption tax rate increases drove a decline in Adjusted EBITDA Margin of 650 basis points.
Group-wide, Flutter reported a net loss of US$1.21 billion due to a number of non-cash expenses.
However, revenues grew by 24.6% year-on-year to US$11.8 billion and Adjusted EBITDA by 46.9% to US$1.68 billion – primarily due to its US giant FanDuel.
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