Corporate bookmaker Sportsbet says it maintained its position as leader of the Australian sports betting market in 2022 with 48% market share, despite stakes and revenue suffering declines as the year progressed.
According to FY22 financial results published by UK-based parent company Flutter Entertainment, Sportsbet saw its revenue fall by 2% year-on-year in 2022 to £1.26 billion (US$1.51 billion) on a 3% decline in money staked. That’s despite average monthly users increasing by 8% to 1,090,000 and reaching a record 1,300,000 in the December quarter – almost double its average users from 4Q19.
Sportsbet said it had enjoyed a COVID-19 tailwind in the first half of the year, but COVID engagement was down in H2 “against challenging comparatives.”
It also faced an increase in point of consumption taxes from July which contributed to an 11% fall in EBITDA to £390 million (US$466 million).
“As the clear market leader with over 48% of the Australian online sports-betting market, Sportsbet benefitted most from the retail to online migration during the Covid lockdown periods in 2020 and 2021, growing 1.4 times that of the online market,” Sportsbet said.
“As retail and society fully reopened during 2022, AMP (average monthly player) growth was more than offset by the reversion of online player engagement from peak COVID levels and competitive intensity which stepped up significantly in 2022, particularly in Q4. This led to high levels of generosity with customers shopping around for the most generous offers.”
Sportsbet said it increased its promotional investment and sales and marketing spend during Q4, which contributed to an increase in average monthly player levels and had it well placed for further growth through 2023.
“We are confident that the plans we have in place for 2023 are the right strategy to drive future growth over the medium term,” it said.
“We will do this through continuing to deliver product innovation and personalised generosity while leveraging our growing recreational customer base, unparalleled local scale and long track record of growing through regulatory changes.”
Group-wide, Flutter booked a 27% increase in revenue to £7.69 billion (US$9.19 billion) on US market expansion. EBITDA also grew by 27% to £918 million (US$1.1 billion) however the company reported a net loss after tax of £305 million (US$364 million).
