Flutter Entertainment Reports Strong Q3 2024 Financial Results: Revenue Soars by 27%

2 hours ago 0 3

Flutter Entertainment has unveiled its financial results for the third quarter of 2024, showcasing robust growth across all key metrics. Total revenue surged to $3.25 billion, marking a substantial 27% year-on-year increase, while the company’s adjusted EBITDA skyrocketed by 74% to $450 million. This impressive performance was driven by a combination of strategic acquisitions, operational efficiencies, and strong market positions in key regions.

Flutter Entertainment Reports Strong Q3 2024 Financial Results: Revenue Soars by 27%

Despite higher operating costs, which increased by 26.4% year-on-year to $1.75 billion, Flutter managed to turn its fortunes around by posting an operating profit of $97 million, a significant recovery from a loss of $137 million in the same period last year. However, the company still reported a net loss of $114 million, albeit a vast improvement from the previous year’s net loss of $264 million, reflecting a narrowing net loss margin to 3.5% from last year’s 10.2%.

US Segment: FanDuel Leads the Charge

Flutter’s US segment, primarily powered by the FanDuel brand, continued to be a standout performer. The division generated $1.25 billion in revenue, accounting for 38.5% of Flutter’s total revenue, with a year-on-year growth rate of 51%. Adjusted EBITDA in the US turned around from a loss of -$55 million last year to a positive $58 million this quarter.

Sportsbook and iGaming Growth

In the US, sportsbook revenue surged by 62% year-on-year. This impressive growth was not just limited to newer markets but also extended to states with established sports betting, where revenue rose by 47%. FanDuel’s gross gaming revenue (GGR) market share stood at 41%, despite a minor decline from the previous quarter. The brand maintained its dominance with a net gaming revenue share of 43%.

The iGaming segment also showed strong growth, with revenue up 46% year-on-year. This increase was driven by both new state expansions and established markets, indicating sustained player engagement and Flutter’s successful product innovations. The segment held a GGR market share of 25%, further solidifying its position as a leader in online gaming.

Increasing Player Base and Engagement

FanDuel’s average monthly players (AMPs) reached 3.2 million, marking a 28% increase year-on-year. This player base growth is nearly equivalent to the entire population of Nevada, showcasing the brand’s widespread popularity. The start of the NFL season played a pivotal role, with peak betting activity surpassing levels seen during Super Bowl LVII.

UK and Ireland Segment: Strong Revenue Growth and Product Innovations

The UKI segment demonstrated steady growth, with revenue rising by 18% year-on-year to $846 million, or 14% on a constant currency basis. The adjusted EBITDA for the region climbed by 29% to $237 million, driven by both product enhancements and strategic marketing initiatives.

Sportsbook and iGaming Revenue Surge

In the UK and Ireland, sportsbook revenue grew by 9%, supported by an 8% increase in stakes. The quarter also benefited from revenue generated during the Euros in July, with same-game parlay wagers seeing a remarkable 142% increase. This was driven by the introduction of new betting options, of which 64% were added in the last two years.

The iGaming segment saw even stronger growth, with revenue up 29% year-on-year and AMPs increasing by 17%. A notable highlight was Flutter’s partnership with Games Global, which expanded its gaming portfolio and attracted more players.

International Segment: Expansion and Acquisitions Fuel Growth

Flutter’s International segment delivered revenue of $781 million in Q3 2024, reflecting a year-on-year increase of 15% or 17% on a constant currency basis. Adjusted EBITDA for the segment reached $152 million, showcasing a 28% growth or 36% on a constant currency basis.

Strategic Acquisitions Driving Market Penetration

The acquisition of Italian operator Sisal in August 2022 and a 51% stake in MaxBet in September 2023 played significant roles in boosting Flutter’s international revenues. MaxBet alone contributed $50 million during the quarter. Furthermore, Flutter is set to expand its footprint in Europe and South America with planned acquisitions of Snaitech and Brazilian operator NSX, valued at €2.3 billion ($2.56 billion) and $350 million, respectively.

Sportsbook revenue in the international markets grew by 31%, while iGaming revenue increased by 11%. These growth rates underscore the effectiveness of Flutter’s global expansion strategy, positioning the company as a leader in diverse markets.

Australia Segment: Solid Performance Amid Competitive Market

While growth in the Australian segment lagged behind other regions, it still reported a healthy 12% increase in revenue (9% on a constant currency basis) to $371 million. Average monthly players rose by 6%, although staking fell by 8%. This decline in staking was attributed to a combination of market competition and shifting player preferences.

Despite these challenges, Flutter’s Sportsbet brand in Australia showed promising trends, particularly in player retention and engagement. The brand has been focusing on enhancing its product offerings to drive growth in an increasingly competitive market.

Full-Year Guidance and Strategic Outlook

Following the Q3 results, Flutter has adjusted its full-year 2024 guidance to reflect current market conditions:

US Segment Guidance: Revenue is now forecasted to be between $6.05 billion and $6.25 billion, while adjusted EBITDA is expected to range from $670 million to $750 million. Despite narrowing the upper end of its guidance, Flutter still anticipates 40% year-on-year growth in revenue and an impressive 206% increase in adjusted EBITDA at the midpoint.
International Markets Guidance: Outside of the US, Flutter has raised its guidance, projecting combined revenue between $8.1 billion and $8.3 billion and adjusted EBITDA ranging from $1.77 billion to $1.87 billion, reflecting year-on-year growth rates of 11% and 3%, respectively.

CEO Commentary on Q3 Performance

Peter Jackson, Flutter’s CEO, expressed confidence in the company’s strategic direction, stating:
“Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations. Our proprietary product offerings and strategic investments have enabled us to increase our revenue and adjusted EBITDA guidance for the year.”

Jackson highlighted the success in the US market, particularly with FanDuel’s performance in the NFL season, as well as growth in UK, Ireland, and international markets through strategic acquisitions and product expansions.

Conclusion: The Financial Results

Flutter Entertainment’s Q3 2024 financial results reflect the company’s solid execution of its strategic initiatives, leading to impressive growth in revenue and adjusted EBITDA across all regions. With continued expansion in the US, UKI, and international markets, coupled with strategic acquisitions, Flutter is well-positioned to capture even greater market share in the coming quarters.

FAQs About Flutter Entertainment’s Q3 2024 Financial Results

1. What was the total revenue reported by Flutter Entertainment for Q3 2024?

Flutter Entertainment reported a total revenue of $3.25 billion for the third quarter of 2024, representing a 27% year-on-year increase.

2. How much did Flutter’s adjusted EBITDA grow in Q3 2024?

The company’s adjusted EBITDA surged by 74% to reach $450 million for Q3 2024.

3. Did Flutter Entertainment achieve an operating profit in Q3 2024?

Yes, Flutter reported an operating profit of $97 million, a significant turnaround from a loss of $137 million in the same quarter last year.

4. What was Flutter’s net loss for Q3 2024?

Flutter recorded a net loss of $114 million in Q3 2024, which is an improvement compared to the $264 million net loss in Q3 2023.

5. How did the US segment perform in Q3 2024?

The US segment, primarily driven by FanDuel, generated $1.25 billion in revenue, with 51% growth year-on-year. Adjusted EBITDA in the US turned positive, rising from -$55 million last year to $58 million.

6. What was the market share of FanDuel in the US for sportsbook and iGaming?

FanDuel held a GGR market share of 41% in the US sportsbook segment and 25% in the iGaming market.

7. How many monthly active players did FanDuel have in Q3 2024?

FanDuel’s average monthly players (AMPs) reached 3.2 million, reflecting a 28% increase year-on-year.

8. What factors contributed to the revenue growth in the UK and Ireland segment?

The UKI segment saw 18% revenue growth, driven by product enhancements, increased stakes, and the success of new betting options introduced for major sports events like the Euros.

9. Which acquisitions fueled Flutter’s international growth?

Key acquisitions included Italian operator Sisal and a 51% stake in MaxBet, both contributing significantly to international revenue. Flutter also announced plans to acquire Snaitech and NSX in Brazil.