Finances

Date: 13.11.2024

by Adam Dworak

Flutter Entertainment Posts Strong Q3 2024 Performance, Raises Full-Year Guidance Amid Record Revenue Growth

Flutter Entertainment has raised its revenue and adjusted EBITDA guidance for 2024, despite acknowledging unfavorable sports betting outcomes in the US for Q4. Reporting an “excellent period” in its Q3 accounts, Flutter noted a 16% increase in Average Monthly Players (AMPs) across its global brands, reaching 12.9 million and driving corporate revenues to $3.2 billion—a 27% year-over-year increase from $2.55 billion in Q3 2023.

A Strong Quarter Despite Challenges in US Sports Betting Results

The gambling giant achieved substantial growth across its key financial indicators:

  • Adjusted EBITDA increased by 75% to $450 million, reflecting a 13.9% EBITDA margin, up from 10% the previous year.
  • Q3 net losses narrowed to $114 million, with adjustments for acquisition-related amortization costs and fair value losses on its former Fox Option subsidiary.

FanDuel’s US Performance Sees Major Turnaround

In the US, Flutter’s FanDuel segment posted a notable improvement with an adjusted EBITDA of $58 million, a sharp contrast to the $55 million loss reported in Q3 2023.

FanDuel benefitted from the start of the NFL season, driving a 28% rise in US AMPs and delivering:

  • Sportsbook revenues: $822 million, up 62% year-over-year.
  • iGaming revenues: $368 million, marking a 46% increase.

Flutter maintains a leading position in the US with a 35% total online GGR market share, including 41% in sportsbook GGR, 43% in net gaming revenue, and 25% in iGaming GGR.

However, Q3’s strong results were impacted by challenging US sports outcomes in Q4, which offset some gains.

CEO Peter Jackson highlighted the quarter’s success, noting,

“Flutter had an excellent quarter, with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and adjusted EBITDA guidance for 2024.

“In the US, we had a fantastic start to the new NFL season, with peak wagers per minute already higher than the Super Bowl LVII. Our proprietary product offering continued to drive strong parlay penetration as well as a step-up in live betting handle.”

Continued Momentum in UK & Ireland Markets

Outside the US, Flutter’s UK & Ireland operations achieved substantial Q3 growth:

  • Revenues: Rose by 15% to $1.99 billion.
  • Adjusted EBITDA: Increased by 9% year-over-year to $342 million.

The UK & Ireland brands posted an 18% revenue increase to $868 million, buoyed by a 13% AMP rise.

Key contributors included high customer engagement through cross-sell offers and events like the UEFA European Football Championship, where efficient marketing helped maximize brand reach and new customer acquisition.

International Markets Expand with Acquisitions and Strong Earnings

Flutter’s International unit posted a solid 15% increase in Q3 revenues, totaling $781 million. Enhanced performances in Italy, Turkey, Georgia, and Brazil contributed to the growth, with Sisal Italia’s strong presence in Italy driving significant market share gains.

Key highlights include:

  • Italy: 13% constant currency revenue growth; Sisal Italia’s online revenue up 41%.
  • Turkey: Revenue up by 104%, with robust market share expansions in Georgia (+21%) and Armenia (+14%).

The International unit’s adjusted EBITDA rose 28% YoY to $152 million. The company’s acquisitions of Snaitech Italia and Brazilian sportsbook Betnacional are expected to expand its international reach further, while enhanced margins and market positioning through Flutter Edge have benefitted brands like Sisal and MaxBet Serbia.

Sportsbet Australia Delivers Consistent Performance

In Australia, Flutter’s Sportsbet division posted an improved adjusted EBITDA of $290 million, reflecting a year-over-year increase from $270 million.

The favorable results were largely due to successful sports outcomes, highlighting Sportsbet’s strong positioning within the Australian market.

2024 Guidance and Share Repurchase Program

Following a strong Q3, Flutter has adjusted its full-year guidance:

  • US Revenue: Revised to $6.15 billion (1% lower than previous guidance) and adjusted EBITDA to $710 million (4% lower).
  • Group Ex-US Revenue: Increased by 3% to target $8.2 billion, with adjusted EBITDA set at $1.82 billion, reflecting a 3% rise.

To bolster shareholder value, Flutter announced a share repurchase program valued at up to $5 billion over the next 3-4 years, with an initial $350 million tranche starting on November 14, 2024.

Flutter’s leadership highlighted the company’s strong market position, with CEO Jackson remarking, “We believe that the Group has exciting growth prospects due to our unparalleled leadership positions across the world, underpinned by access to the Flutter Edge. We expect to have significant capital to deploy over the coming years, and I am excited to commence the share repurchase program in Q4.”