Australia’s leading sportsbook operator Sportsbet saw its revenues take a hit in the three months to 30 September 2022, with the end of COVID-19 lockdowns resulting in lower player engagement.
According to the 3Q financial results of its UK parent company Flutter Entertainment, Sportsbet’s revenues fell 14% year-on-year to £319 million (US$362 million), despite average monthly players growing by 1% to 1.1 million.
The company said the reduced revenue reflected “lower levels of player engagement compared to the prior year when more than 60% of the country was in lockdown, combined with high levels of weather-related racing disruption.”
Net revenue margin was 11.1% and flat when compared with the prior year, “as the benefit of bookmaker friendly sports results and structural margin improvements were offset by increased investment in promotional generosity to drive customer retention and engagement ahead of the spring [horse racing] carnival.”
Sportsbet’s Australian revenue share has soared following Flutter’s 2020 merger with The Stars Group, which resulted in the Sportsbet and BetEasy brands merging into one.
At the time their combined market share was 26% but had grown to 50% by 1Q22, overtaking former market leader Tabcorp.
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