Key points:
- Revenue totalled $3.25bn, up 27% year-on-year
- Net loss totalled $114m, down from $262m last year
- US revenue was up 51%, totalling $1.25bn
Flutter Entertainment has reported its financial results for the third quarter of 2024. In total, revenue came to $3.25bn, up 27% year-on-year, while adjusted EBITDA reached $450m, up 74%.
Growth in revenue was somewhat offset by an increase in sales costs, which increased 26.4% year-on-year to $1.75bn. However, the quarter saw Flutter report an operating profit, making $97m compared to last year’s loss of $137m.
However, Flutter still reported operating at a net loss following its net expenses, though this loss has shrunk significantly year-on-year, down by close to $150m for a total net loss of $114m. Flutter’s net loss margin followed suit, reported at 3.5% compared to last year’s 10.2%.
Loss per share also saw some improvement, totalling $0.58 from last year’s $1.55. This, in part, was achieved by a reduction in Flutter’s Fox Option; an option for the business to acquire an 18.6% equity interest in FanDuel following the closure of Fox Bet in July 2023.
As of writing (13 November, 11.50am GMT), Flutter pre-market stock prices are up 7.9%, totalling $256.10, compared to the 12 November end-of-day price of $248.17.
By segment: US
Flutter’s US segment, which primarily consists of work under its FanDuel brand, reported revenue of $1.25bn, or 38.5% of Flutter’s total revenue. This reflects growth of 51% year-on-year, with adjusted EBITDA following a similar trajectory of growth, from -$55m last year to $58m this year.
Total online gross gaming revenue (GGR) market share came to 35%, with a net gaming revenue share of 43%. Average monthly players (AMPs) reached 3.2 million, up 28% year-on-year; or, according to a 2023 census, just slightly more than the population of the state of Nevada.
Sportsbook revenue was up 62% year-on-year. While in part bolstered by newer sports betting states, this does not mean growth was stilted in other states, with revenue growth of 47% from states with legalised sports betting prior to 2022. FanDuel reported a GGR market share of 41% - a dip of 6% compared to Q2 2024. This growth in revenue was attributed to a 36% year-on-year increase in stakes as well as favourable sports results.
FanDuel’s iGaming segment saw revenue up 46%, with growth from states with legalised iGaming prior to 2022 not far behind at 44% - perhaps an indication of continued interest in iGaming, or a reflection of the slow regulatory approval of iGaming in the US. The segment held a GGR market share of 25%.
By segment: UKI
Flutter’s UKI segment saw revenue growth of 18%,or 14% on a constant currency (CC) basis, totalling $846m. Adjusted EBITDA saw an even sharper increase year-on-year, up 29% to $237m. AMPs for the segment were up 13% year-on-year.
Sportsbook revenue was up 9%, accompanied by an 8% increase in stakes during the quarter. Growth was partially attributed to product improvements and revenue generated from the Euros in July. Across the first seven rounds of the season, same-game parlay wagers were up 142%, of which 64% contained betting options only introduced in the last two years.
Good to know: We looked into the development and popularity of same-game parlays in the Sports Betting Focus H2 2024 issue of Gambling Insider
Flutter’s UKI iGaming segment also saw growth, up 29% year-on-year with a AMP growth rate of 17%. During the quarter, Flutter UKI partnered with iGaming provider Games Global, expanding its portfolio of offers to players.
By segment: International
International segment revenue came to $781m in Q3 2034, up 15% year-on-year or 17% on a CC basis. Adjusted EBITDA totalled $152m, up 28% or 36% on a CC basis.
Italian operator Sisal, which Flutter acquired in August 2022, was noted as a particular driver of this growth. There are also suggestions that Flutter will invest in the brand for it to acquire the Italian lottery licence, though that has yet to be seen. MaxBet, which Flutter acquired a 51% stake in in September 2023, was also a notable contributor, making $50m in revenue during the quarter.
Sportsbook revenue was up 31%, with iGaming up 11% year-on-year.
During the quarter, Flutter announced plans to acquire both Italian sports betting and gaming company Snaitech and a 56% stake in Brazilian operator NSX. These acquisitions, expected to be completed by Q2 2025, were valued at €2.3bn ($2.56bn) and $350m respectively.
By segment: Australia
While growing at a pace slightly behind Flutter’s other segments, revenue from Flutter’s Australian segment was still up, growing 12% (or 9% on a CC basis) to $371m. AMPs were also up, growing 6% year-on-year. Despite this, staking was down 8%.
Full year guidance
Flutter has adjusted its FY 2024 guidance following the results from this quarter.
For its US segment, guidance has been narrowed by 1% for revenue and 4% for adjusted EDITDA. This is due to the fact that, despite Q3 performance, unfavourable conditions going into Q4 have offset potential for growth. New FY revenue now ranges from $6.05bn - $6.25bn (from $6.05bn - $6.35bn), while adjusted EBITDA now ranges from $670m - $750m (from $680m - $800m). However, at mid-point, this still reflects year-on-year growth of 40% and 206% respectively.
Outside of the US, guidance has been raised to $8.1bn - $8.3bn in combined revenue and $1.77bn - $1.87bn in combined adjusted EBITDA. At mid-point, this reflects year-on-year growth of 11% and 3% respectively.
Comments
On the results, CEO Peter Jackson said: “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 Super Bowl LVII. Our proprietary product offering continued to drive strong parlay penetration as well as a step up in live betting handle.
“Outside of the US, all divisions delivered a strong performance in the quarter as they leveraged the benefits of the Flutter Edge. In UKI, a broader product range across both sports and iGaming drove player and revenue growth. Sisal continued to make significant share gains in Italy as we look to expand our presence there with the addition of Snai. In Australia, Sportsbet has been demonstrating encouraging trends.”
