Flutter Entertainment announced its financial results for the third quarter of 2024. Overall, revenue reached $3.25 billion, a 27% increase year-over-year, with adjusted EBITDA at $450 million, up 74%.
The increase in cost of sales partially offset the revenue growth, with cost of sales rising 26.4% year-over-year to $1.75 billion. However, Flutter reported an operating profit of $97 million for the quarter, compared to a loss of $137 million in the same period last year.
Despite this, Flutter reported that after deducting net expenses, the company still incurred a net loss, though it was significantly reduced by nearly $150 million compared to the previous year, totaling a net loss of $114 million. Flutter's net loss rate also reflected this, reported at 3.5%, compared to 10.2% last year.
Loss per share also improved, from $1.55 last year to $0.58. This was partly due to the reduction of Flutter's Fox Option; this was an option to acquire 18.6% of FanDuel following the closure of Fox Bet in July 2023.
As of the time of writing this article (November 13, Greenwich Mean Time 11:50 AM), Flutter's pre-market stock price rose 7.9% to $256.10, compared to the closing price of $248.17 on November 12.
By Segment: United States
Flutter's US division, primarily composed of the FanDuel brand, reported revenue of $1.25 billion, accounting for 38.5% of Flutter's total revenue. This reflects a 51% growth year-over-year, with adjusted EBITDA following a similar growth trajectory, from -$55 million last year to $58 million this year.
Online gambling total revenue (GGR) accounted for 35% of the market share, with net gambling revenue holding 43% of the market share. The average monthly players (AMP) reached 3.2 million, up 28% year-over-year, slightly higher than the population of Nevada according to the 2023 census.
Sports betting revenue grew 62% year-over-year. While part of this growth was driven by newer sports betting states, it does not imply stagnation in other states; states that had legalized sports betting before 2022 saw revenue growth of 47%. FanDuel reported that GGR market share was 41%, down 6% compared to the second quarter of 2024. Revenue growth was attributed to a 36% year-over-year increase in stakes and favorable sports results.
FanDuel's iGaming division saw a revenue increase of 46%, with revenue from states that had legalized iGaming before 2022 closely following at 44%—this may indicate a sustained interest in iGaming or reflect slow regulatory approvals in the US. The division held a 25% share of the GGR market.
By Segment: UKI
Flutter's UKI division saw an 18% revenue growth, 14% on a constant currency (CC) basis, totaling $846 million. Adjusted EBITDA saw a more significant increase, up 29% year-over-year to $237 million. The division's AMP grew 13% year-over-year.
This quarter, sports betting revenue grew 9%, with betting volume up 8%. Growth was partly attributed to product improvements and revenue from the European Championship in July. In the first seven rounds of this season, same-game multi-bet grew 142%, with 64% including betting options introduced in the last two years.
Worth noting: We explore the development and popularity of same-game multi-bets in our "Gambling Insider" sports betting focus journal for the second half of 2024.
Flutter's UKI iGaming division also achieved growth, up 29% year-over-year, with AMP growth rate at 17%. This quarter, Flutter UKI collaborated with iGaming provider Games Global to expand its service offerings to players.
By Segment: International
In the third quarter of 2034, the international division's revenue reached $781 million, up 15% year-over-year, 17% on a CC basis. Adjusted EBITDA totaled $152 million, up 28%, 36% on a CC basis.
Flutter's acquisition of Italian operator Sisal in August 2022 is considered a particular driver of this growth. There are also suggestions that Flutter will invest in the brand to obtain an Italian lottery license, although this remains to be seen. Flutter's acquisition of a 51% stake in MaxBet in September 2023 was also a significant contributor, with revenue for the quarter at $50 million.
Sports betting revenue grew 31%, with iGaming revenue up 11% year-over-year.
This quarter, Flutter announced plans to acquire Italian sports betting and gaming company Snaitech and a 56% stake in Brazilian operator NSX. These acquisitions are expected to be completed in the second quarter of 2025, valued at €2.3 billion ($2.56 billion) and $350 million, respectively.
By Region: Australia
Although Flutter's Australian division's revenue growth was slightly lower than other divisions, it still grew by 12% (or 9% on a CC basis), reaching $371 million. AMP also saw growth, up 6% year-over-year. Despite this, the volume of stakes still decreased by 8%.
Full Year Guidance
Flutter has adjusted its 2024 fiscal year performance guidance based on this quarter's results.
For the US division, revenue guidance has been lowered by 1%, and adjusted EDITDA guidance has been reduced by 4%. This is because, despite good performance in the third quarter, adverse conditions in the fourth quarter offset the growth potential. New fiscal year revenue is currently between $6.05 billion and $6.25 billion (originally $6.05 billion to $6.35 billion), while adjusted EBITDA is now between $670 million and $750 million (originally $680 million to $800 million). However, calculated at the midpoint, this still reflects a 40% and 206% year-over-year growth.
Outside the US, the combined revenue expectation has been raised to $8.1 billion to $8.3 billion, with combined adjusted EBITDA expectations raised to $1.77 billion to $1.87 billion. At the midpoint, these reflect 11% and 3% year-over-year growth, respectively.
Comments
Regarding the performance, CEO Peter Jackson stated: "Flutter performed excellently this quarter, with revenue growth accelerating to 27%, far exceeding market expectations, and we have raised our revenue and adjusted EBITDA guidance for 2024.
"In the US, we had a good start to the new NFL season, with peak betting per minute already higher than the fifty-seventh Super Bowl. Our proprietary products continue to drive strong growth in multi-bet penetration and enhance live betting volumes.
"Outside the US, all divisions performed strongly this quarter, fully leveraging the advantages of Flutter Edge. In the UK, a broader range of sports and iGaming products drove player and revenue growth. With Snai's addition, Sisal's market share in Italy continues to grow significantly, and we look forward to expanding our business in Italy. In Australia, Sportsbet has shown encouraging trends."
