Last checked at 28 Mar 2019 18:28
Released: 28 March 2019 (18.30 GMT)
Paddy Power Betfair plc (the "Group")
US Investor Day on FanDuel Group
The Group is today holding an Investor Day on its US operations, FanDuel Group, at its sportsbook in New Jersey. The purpose of the event is to present further detail on FanDuel Group and to outline the opportunity to create substantial long-term value in the expanding US market.
FanDuel Group's leading online fantasy, racing and casino businesses have now been supplemented by the successful launch of its sports betting business. Combined, FanDuel is the sector's number one online operator in the US and has a substantial nationwide footprint1. In addition, future state-by-state regulation of sports betting presents a huge market opportunity that is likely to be transformative for the gaming sector. We are well positioned to continue to capitalise on that opportunity given our key assets:
· An established sports-focused brand with high national awareness
· An extensive and growing national customer base with over 8.5 million registered customers
· Unique cross-sell opportunities across four distinct product verticals
· Substantial scale, resources and operational expertise already established in the US, supported by the Group's global capabilities and financial strength
The distinct advantages above have been very evident in our success in New Jersey to date:
· Podium position established in the online market with FanDuel accounting for 46% of handle (stakes) in the market to date2
· Leveraging the FanDuel brand and fantasy database has enabled us, at an attractive investment cost, to already establish a valuable online sportsbook customer base of over 100,000 customers
· Continuing to acquire customers at attractive projected return on investment, with average contribution3 payback within 12 months
· Meadowlands established as the marquee venue for retail sports betting, with over 50% of retail market handle (stakes) to date2
· Forecast Q1 2019 sportsbook gross revenue of approximately $30m, double the revenues generated in Q4 2018
· Initial cross-sell to Betfair Casino has been very encouraging, already contributing to accelerated casino growth. This has elevated Betfair's online casino market share to 15%2 in February
Guidance with respect to total New Jersey sports betting contribution remains unchanged: we continue to expect to generate positive contribution3 in the state 18 to 30 months post launch (i.e. at some point during 2020).
The presentation used at the event will be published later this evening on our corporate website: https://www.paddypowerbetfair.com/investor-relations/results-centre
Contacts:
Ivan Kelly, Investor Relations + 353 87 7944 999 / + 353 1 905 1262
David Jennings, Corporate Finance & Investor Relations + 353 87 951 3560 / + 353 1 905 0953
James Midmer, Corporate Communications + 44 20 8834 6843 / + 353 1 903 9106
Notes:
1 Total online revenues of $285m in 2018 making us the clear number one sports gaming operator by revenue size. Online revenues generated across 46 states
2 Market share is based on New Jersey DGE published reports (latest report is for February 2019)
3 Contribution is defined as net revenue less cost of sales and marketing spend