Sportsbet Claims 48% Market Share

Flutter-owned Sportsbet continues to lead the Australian market with a 48% market share, Sportsbet parent company reported on Thursday. The Australian bookmaker also recorded an 8% increase in average monthly users.

It now welcomes, on average, 1.09 million customers each month and the record traffic the sportsbook saw was in the December quarter when an average of 1.3 million users accessed the platform. That was almost double compared to the same period in 2019.

Revenue Drops 2% to $2.23 Billion

However, FY22 results also show that there was a slight fall in Sportsbet’s revenue and money-staked figures. According to London-listed Flutter Entertainment (LON: FLTR), Sportsbet’s revenue dropped by 2% compared to last year to $2.23 billion. The amount of money staked also fell by 3%.

Sportsbet explained this by claiming that, in the first half of the year, the bookmaker still used the momentum gained during the COVID-19 pandemic. However, engagement dropped in H2, with the bookie attributing the decrease to the “challenging comparatives.”

Another reason why some of Sportsbet’s numbers dropped was that the new point of consumption tax implemented in July last year which the bookmaker said accounted for an 11% decrease in EBITDA which fell to $688 million.

Increased Competition for Customers

In a company announcement, Sportsbet said that “as the clear market leader with over 48% of the Australian online sports betting market” the company profited from the online migration of bettors who used to wager at retail betting providers before the COVID-19 lockdowns.

The bookmaker noted that after “retail and society fully opened,” the average number of monthly customers decreased due to the “reversion of online player engagement from peak COVID levels.” The competition for players between betting operators in Australia increased as a result, and bettors were hunting for the best offers they could find resulting in many of them stumbling upon the infamous Bet With Mates component.

To offset competitors’ advertising campaigns, Sportsbet spent more on promotional activities during Q4 too. That resulted in an increase in the number of average monthly users and put the bookmaker in a favourable position for increased growth in 2023.

Strategy for Growth

The Flutter-owned betting operator said it was confident that the plans it had for 2023 were the way to go to grow the brand “over the medium term.” The bookie said it would achieve this growth by delivering innovative products and “personalized generosity” for bettors. It would also try to increase the number of recreational customers, as well as adapt to and grow through new regulatory changes.

Sportsbet’s parent Flutter Entertainment achieved a 27% increase in revenue to $13.58 billion on the back of its foray into the US market. Group-wide EBIDTA increased by 27% too ($1.63 billion). Flutter had a net loss after tax of $537 million, though.