Flutter’s Aussie sportsbook Sportsbet reports Q4 declines on lower racing revenue, higher taxes
Australia’s market leading online sportsbook Sportsbet reported an 8% year-on-year decline in revenue to US$346 million in the three months to 31 December 2024, with the company pointing to an expected fall in the racing market.
Adjusted EBITDA was down by a more substantial 35% to US$66 million, primarily due to recent increases in taxes in the state of Victoria and adverse sports results, which swung from 20 basis points favorable a year earlier to 40 basis points unfavorable.
Despite this, parent company Flutter said in its fourth quarter 2024 results release that Australian player trends remained encouraging with a third consecutive quarter of growth in average monthly players – up 7% to 1.3 million.
Sportsbet also saw better performance in key sports compared to racing, stating, “While the racing market declined in line with expectations, we saw strong engagement on sports including NRL, NBA and NFL, with our leading product offering also delivering sustained improvements to structural gross revenue margin.”
Structural revenue margin was up 30 basis points year-on-year to 17.9% the company explained, driven by its pricing and risk management capabilities.
Sportsbet remains a comfortable market leader in Australia’s competitive online sports betting scene with well over 40% market share.
