Flutter Entertainment Share Discussion Threads

[lappuliisa] 26/7/2024 16:56

Boyd Gaming which is the partner of Fanduel, provided earnings surprise today:

- In the Online segment, both revenue and Adjusted EBITDAR increased year-over-year at a double-digit pace during the quarter, as the Company continued to benefit from strong growth in FanDuel’s sports-betting operations.


Revenues- Online: $129.93 million compared to the $89.77 million average estimate based on five analysts. The reported number represents a change of +52.9% year over year.



Boyd Gaming has other online operations too but that's a good signal.

Founded in 1975, Boyd Gaming Corporation (NYSE: BYD) is a leading geographically diversified operator of 28 gaming entertainment properties in 10 states, manager of a tribal casino in northern California, and owner and operator of Boyd Interactive, a B2B and B2C online casino gaming business. The Company is also a strategic partner and 5% equity owner of FanDuel Group, the nation's leading sports-betting operator.

[solarman2013] 25/7/2024 21:09

all good. let us hope for a mind blowing report,

[rkeck] 25/7/2024 20:47

I’m making a habit of this.

Solarman - I apologise. I was confusing our hold % with market share % and we are indeed pulling away from DK in Q2. I was totally wrong. I used to be good at maths… my only excuse is a 14 week old puppy who is addling my brain.

[solarman2013] 25/7/2024 15:56

Here they show FD improving and DK reduced in market share .

hxxps://markets.businessinsider.com/news/stocks/draftkings-analyst-cautious-on-q2-but-optimistic-about-nfl-season-well-positioned-to-execute-in-second-half-of-year-1033579427

[rkeck] 25/7/2024 13:50

Thanks Solarman. There is a detailed breakdown of these figures in my post from 9:11am yesterday (I can see now why you were you weren’t aware of the data in later posts). All good and I appreciate the dialogue as Flutter and me not being skint in old age are synonymous.

[solarman2013] 25/7/2024 13:25

If fd closes penn digital it will leapfrog dk in market share too. Just hope the price is reasonable .

[solarman2013] 25/7/2024 13:07

Ok. From cbs sports :

FanDuel generated nearly 46% of the industry’s revenue in the second quarter, while DraftKings came in at just under 33%. They were 45-34 in q1 which means that dk spent a bunch for more losses. While fd understanding that Illinois was standing firm, held back their powder. Smart move

[rkeck] 25/7/2024 11:12

The source is from a broker report from Citizens/JMP Securities (all figures in my post below - I only accessed it via a DraftKings chat forum). We agree that profitability is far more important than sales … I am only saying that we get that profit figure from handle multiplied by hold. Hope this makes sense and I’m open to being corrected if I’m not understanding the maths correctly (although I’m pretty confident it’s correct).

[solarman2013] 25/7/2024 10:52

As a long term investor I can say that profitability trumps sales. Dk hasn’t figured that part out. I’d rather flutter focus on reality vs vanity.

[solarman2013] 25/7/2024 10:50

Where you seeing this?

[rkeck] 25/7/2024 10:30

I’m not overly worried about it as the hold % lead remains strong but the market share drop is on the handle side (DK now No 1 on handle). Mathematically they are both numbers of equal value in terms of generating revenue so it’s worth at least noting especially in relation to future weeks handle percentages.

[solarman2013] 25/7/2024 09:33

Where do you see market share drop? In fact draftkings show fan duel gaining

[rkeck] 25/7/2024 04:40

Totally agree that YoY is the key metric when analysing absolute figures. Generally disagree when comparing % market share unless longer term data shows certain companies have stronger performance in key sports. I will be keen to hear Peter Jackson’s thoughts on the market share drop in handle … he may be fairly sanguine about it.

[solarman2013] 24/7/2024 22:10

get ready to have your socks blown off, is what this indicates to me.

[lappuliisa] 24/7/2024 21:49

Kambi:
Operator trading margin was 10.3%, boosted by higher than average margin from the June games in the Euros soccer tournament.

Kindred:
Favourable results, in combination with a record share of Bet Builder activity, delivered a historic high sportsbook margin of 12.1 per cent. This is considerably higher than the longterm average margin of 9.9 per cent and we expect to see some normalisation in the second half of 2024.

Kindred also comments on Euro 2024:
Euro 2024 – highest tournament revenue ever. 16 per cent increase in revenue vs World Cup 2022.
Sports betting margin before free bets at 19.7%, driven by high margin product focus.

June Margin for the Euros was 24.1% for June and for July 10.6%.

[solarman2013] 24/7/2024 17:37

and then there are olympics...

[the white house] 24/7/2024 17:08

It has been mentioned before that you must ONLY compare a Q with the previous year Q due to the hugely different sports events and differing interest levels. Any Q without gridiron will be lower than any Q with itNon annual events can then be overlaid ie Euros & World Cup and compared and noted with appropriate extra levels of turnoveriCasino are also subject to seasonality with hours playing online poker/roulette less in bbq season than November again meaning YoY not Q by Q is the key measure

[rkeck] 24/7/2024 09:45

I respectfully disagree that your last post represents the 2 customer profiles (not least because Fanduel is still consistently using a materially higher level of promos than DraftKings). I would be keen to hear how other people on here interpret the Q2 numbers - I am very happy to be corrected if I am misinterpreting the data.(NB I should add that the customer profiles dapper suggests may be fair in my more extreme hypothetical but not convinced that is what is happening with DK/FD)

[dapper5] 24/7/2024 09:41

When you see distortion like that you have to ask what sort of customer base do each of the businesses have, and which as an investor would you prefer? Option A - A business with a high dependency on a small group of high turnover but low revenue customers (who generally require higher levels of bonusing), or Option B - a business with a large base of low turnover but high revenue customers

[rkeck] 24/7/2024 09:35

Can I probe that a little Dapper? Surely, by definition, 50% handle with 30% hold (Market share) produces a higher revenue than 30% handle and 40% hold? Your point on customer type is surely not relevant here as these figures already reflect that.

[dapper5] 24/7/2024 09:29

Profit derived from revenue is all that matters. Handle is just a statistic, and keep in mind that there are different cohorts of customers, some generating high handle but low revenue, and vice versa.

[rkeck] 24/7/2024 09:11

These figures aren’t quite as strong for FD as I was hoping. Gained 0.6% revenue market share but lost 1.3% in handle. As we are effectively multiplying them, we are slightly down in overall market share terms.

Gross Gaming Revenue Market Share:

DraftKings 32.9% in June, 32.8% 2Q24, compared to 34.2% in 1Q24
FanDuel 47.1% in June, 45.9% 2Q24, compared to
45.3% in 1Q24

Handle Market Share:
DraftKings: 40.0% in June, 38.0% 2Q24, and 35.3% in 1Q24
FanDuel: 35.0% in June, 36.5% 2Q24, and 37.8% in 1Q24

[the white house] 22/7/2024 13:30

Strong June and Q Michigan FDI-casino 41m Vs 26m Q 132m from 81m in 23Sports 10m Vs 7m Q 39m from 30mQ overall171m Vs 111m In other news, neither US Scotty, Eng Rosey or Irish Lowry winning The Open is good for the various books

[solarman2013] 19/7/2024 15:23

Hold is what counts