Flutter commits to paying FanDuel salaries as Q1 revenue rises 72%

FanDuel revenue for Q1 has grown by 72% to hit $150m across sports and gaming driven by continued customer acquisition efforts.

The firm acquired over 100,000 new customers in the first quarter, with gaming revenue soaring 255% thanks to cross-selling sports users in New Jersey and Pennsylvania.

CEO Peter Jackson told investors: “The group performed very well in the period prior to the disruption to sporting events in mid-March.

“We delivered strong customer growth across each of our brands and benefited from favorable sports results across our sportsbooks,” he added.

However, since the loss of professional sports and nationwide lockdown measures came into force in mid-March, FanDuel has seen a 46% YoY drop in sports revenue.

Overall US revenue for the four weeks to April 12 was down 8% on the previous year, although gaming revenue had grown 200%.

Flutter Entertainment reported a 32% decline in revenue across all brands since March 26, with sports down 65%, although overall revenue was offset by a 15% uptick in gaming revenue.

The firm has pledged to pay all its employees’ salaries without government aid or assistance for as long as possible.

“We have concluded that for as long as possible, we will endeavor to fund the salaries of all of our employees through the Group’s own financial resources,” confirmed the operator in this morning’s Q1 trading update.

“Should the duration of the crisis be such that not taking this support would jeopardize jobs, we will review our position,” it added.

Many other operators including William Hill US and GVC Holdings have furloughed hundreds of staff, particularly in retail.