Flutter Entertainment has released its financial results for the first quarter of 2024, showcasing a robust performance across various segments despite facing some challenges. The operator reported a total revenue of $3.4 billion, reflecting a 16% year-on-year increase, while adjusted EBITDA surged by 46%, reaching $514 million. However, the company also reported a net loss, which increased from $111 million in Q1 2023 to $177 million in Q1 2024, influenced by specific strategic decisions.
Flutter Entertainment
Revenue and Profitability Overview: Total Revenue and EBITDA Growth
Flutter’s Q1 2024 results highlight significant revenue growth driven by strong performance across different markets. The total revenue of $3.4 billion represents a 16% increase compared to Q1 2023. This growth is a testament to the company’s expanding market presence and successful operational strategies.
Adjusted EBITDA saw a remarkable increase of 46% year-on-year, reaching $514 million. This substantial growth indicates improved operational efficiency and profitability, underscoring Flutter’s ability to capitalize on market opportunities.
Net Loss and Contributing Factors
Despite the revenue and EBITDA growth, Flutter reported a net loss of $177 million for Q1 2024, up from $111 million in Q1 2023. This increase in net loss per share, from $0.58 to $1.10, was partly due to a non-cash charge of $184 million related to the closure of the Fox Bet brand, compared to $64 million in Q1 2023.
US Market and FanDuel’s Dominance: Revenue Contributions and Growth
The most significant contribution to Flutter’s Q1 revenue came from its US operations, generating $1.41 billion or 41.5% of the group’s total revenue. This marks a 32% year-on-year growth, the highest among all segments. Adjusted EBITDA for the US operations also showed positive movement, with a gain of $26 million, a stark contrast to the previous year’s loss of $53 million.
FanDuel’s Market Leadership
FanDuel, Flutter’s premier brand in the US, maintained its position as the leading US sportsbook, holding a net gaming revenue (NGR) market share of 52% and a gross gaming revenue (GGR) market share of 46%. FanDuel’s iGaming offering also rose to the top spot with a GGR market share of 27%, an improvement from the second place in Q4 2023.
Sportsbook and iGaming Revenue Growth
The sportsbook revenue increased by 30% to $986 million, while iGaming revenue grew by 49% to $358 million. This growth is attributed to successful product launches and strategic partnerships, such as the collaboration with the Carolina Panthers, which boosted mobile sports betting in North Carolina.
CEO’s Insights
On these results, Flutter CEO Peter Jackson commented, “We have had an excellent start to the year. In the US, FanDuel’s top-line momentum is translating into strong growth in US adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment.”
Performance in the UK and Ireland: Revenue and EBITDA Growth
In the UK and Ireland, Flutter reported a 17% year-on-year increase in revenue, reaching $861 million. Adjusted EBITDA in this region grew by 30%, totaling $268 million. The revenue was almost evenly split between sportsbook operations, which generated $411 million (up 9%), and iGaming operations, which contributed $406 million (up 27%).
Sportsbook and iGaming Highlights
Total sportsbook stakes in the UK and Ireland amounted to $3.26 billion, showing a slight growth of 1%. The iGaming sector demonstrated robust growth, reflecting the company’s focus on enhancing its digital offerings.
Future Prospects
The future of Flutter’s UK and Ireland segment remains to be seen, particularly following its exit from the Irish stock market and increased focus on the US market. This strategic shift could impact performance in subsequent quarters.
International Segment Performance: Revenue and EBITDA Statistics
Flutter’s international segment reported $797 million in revenue, a 5% year-on-year increase (6% on a constant currency basis). Adjusted EBITDA for the international markets grew by 20%, trailing just behind the UK and Ireland segment.
Sports Betting and iGaming Trends
International sports betting stakes totaled $1.57 billion, up 21% year-on-year. Sportsbook revenue was $160 million, while iGaming revenue reached $600 million, making it the highest among all Flutter segments. This contrasts with trends seen in the UK&I and US markets, where sportsbook revenue typically leads.
Regional Highlights
Notably, Sisal in Italy saw a 22% increase in average monthly players from March 2023 to March 2024, driven by the successful launch of the Sisal betting app in Q3 2023. In India, the Indian Premier League and Junglee Daily Fantasy Sports contributed to a 20% increase in average monthly players, although sports betting revenue reflected a 12% year-on-year decline.
Performance in Australia: Sports Betting and Revenue Trends
In Australia, sports betting stakes were down 19%, with sportsbook revenue decreasing by 6% to $329 million (a 2% decline on a constant currency basis). Adjusted EBITDA remained relatively stable at $83 million, reflecting a 2% year-on-year decline or a 2% increase on a constant currency basis. The market had 991,000 average monthly players.
Group Performance Excluding US: Combined Revenue and EBITDA
Combining the results from Australia, UK&I, and the international segment, Flutter’s revenue excluding the US totaled $1.99 billion, a 16% year-on-year increase. Adjusted EBITDA for these regions grew by 20%, totaling $488 million.
CEO’s Remarks
Peter Jackson added, “Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK where the launch of Super Sub on Paddy Power has been our most successful product launch to date, and in Italy where we have been taking online sports betting and iGaming market share during Q1 and reached an all-time record in April.”
Conclusion: The Financial Results
Flutter’s financial results for Q1 2024 paint a picture of a company in robust health, with strong revenue and EBITDA growth across multiple regions despite some challenges. The company’s strategic investments and focus on market expansion, particularly in the US, are driving significant gains. However, the reported net loss and market-specific declines suggest areas for continued strategic focus and improvement.
FAQs on Flutter’s Q1 2024 Financial Results
1. What was Flutter’s total revenue for Q1 2024?
Flutter reported a total revenue of $3.4 billion for the first quarter of 2024, representing a 16% year-on-year increase.
2. How much did Flutter’s adjusted EBITDA grow in Q1 2024?
Adjusted EBITDA grew by 46% year-on-year, reaching $514 million in Q1 2024.
3. Did Flutter report a net profit or loss for Q1 2024?
Flutter reported a net loss of $177 million for Q1 2024, which was an increase from a net loss of $111 million in Q1 2023.
4. What factors contributed to Flutter’s net loss in Q1 2024?
The net loss was partly due to a non-cash charge of $184 million related to the closure of the Fox Bet brand, compared to a $64 million charge in Q1 2023.
5. Which market contributed the most to Flutter’s revenue in Q1 2024?
Flutter’s US operations contributed the most, generating $1.41 billion, which is 41.5% of the group’s total revenue.
6. What was FanDuel’s performance in the US market?
FanDuel remained the top US sportsbook, holding a net gaming revenue market share of 52% and a gross gaming revenue market share of 46%. FanDuel’s iGaming offering also improved to the number one spot with a GGR market share of 27%.
7. How did Flutter’s sportsbook and iGaming revenue perform in the US?
Sportsbook revenue in the US increased by 30% to $986 million, while iGaming revenue grew by 49% to $358 million.
8. What was the impact of mobile sports betting in North Carolina on Flutter’s results?
The launch of mobile sports betting in North Carolina in March, partnered with the Carolina Panthers, contributed positively, with 5.3% of adults in the state signing up for FanDuel in the first 45 days of the launch.
9. How did Flutter perform in the UK and Ireland market?
In the UK and Ireland, revenue was up 17% year-on-year to $861 million, with adjusted EBITDA up 30% to $268 million. Sportsbook operations generated $411 million, and iGaming operations contributed $406 million.
10. What are the future prospects for Flutter in the UK and Ireland?
Future performance may be impacted by Flutter’s exit from the Irish stock market and increased focus on the US market. The strategic shift could influence upcoming quarterly results.
11. How did Flutter’s international segment perform?
Flutter’s international segment reported $797 million in revenue, a 5% year-on-year increase, with adjusted EBITDA growing by 20%. Sports betting stakes totaled $1.57 billion, and iGaming revenue reached $600 million.
12. Which regions showed notable performance in Flutter’s international segment?
Sisal in Italy saw a 22% increase in average monthly players due to the successful launch of the Sisal betting app. In India, the Indian Premier League and Junglee Daily Fantasy Sports led to a 20% increase in average monthly players, although sports betting revenue declined by 12% year-on-year.
13. How did Flutter fare in the Australian market?
In Australia, sports betting stakes were down 19%, and sportsbook revenue decreased by 6% to $329 million. Adjusted EBITDA remained relatively stable at $83 million.
14. What is the combined performance of Flutter excluding the US market?
Combining results from Australia, UK&I, and the international segment, Flutter’s revenue excluding the US totaled $1.99 billion, up 16% year-on-year, with adjusted EBITDA growing by 20%, totaling $488 million.
