REG - FlutterEntertainment - Flutter Q1 2025 - Shareholder Letter
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RNS Number : 7868H Flutter Entertainment PLC 08 May 2025
Flutter Entertainment Reports First Quarter 2025 Financial Results
New York, May 7, 2025: Flutter Entertainment (NYSE: FLUT; LSE: FLTR)
("Flutter") the world's leading online sports betting and iGaming operator
today announces Q1 results, and updates 2025 guidance.
Flutter has today issued a letter to shareholders along with a press release
announcing the financial results for the quarter ended March 31, 2025.
A copy of the letter is enclosed, and both the letter and the press release
are available on Flutter's website at www.flutter.com/investors.
Contacts:
Investor Relations: Media Relations:
Paul Tymms, Investor Relations Kate Delahunty, Corporate Communications
Ciara O'Mullane, Investor Relations Lindsay Dunford, Corporate Communications
Chris Hancox, Investor Relations Rob Allen, Corporate Communications
Email: investor.relations@flutter.com Email: corporatecomms@flutter.com
To our shareholders
I am delighted to present the first of our quarterly shareholder letters, in
which I will reflect on Flutter's long term growth opportunity and our
strategic progress, alongside the most recent quarter's performance.
Introduction
It is now just over 15 months since Flutter listed on the New York Stock
Exchange and almost a year since our US primary listing became effective,
making it a suitable time to reflect on Flutter's differentiated positioning
and the significant global opportunity we see ahead. My leadership team and I
set out Flutter's compelling growth trajectory at our Investor Day in
September 2024, and I remain very excited about that opportunity. We believe
that:
· We have a compelling strategy, a strong track record of success, and
importantly we are focused on growing our business sustainably. Our commitment
to Responsible Gaming is central to our long term plan
· Flutter has access to a significant global market and runway of growth with
the regulated sports betting and iGaming market expected to be worth c.$368bn
by 2030(1)
· Our diversified portfolio of local hero brands are winning in their respective
markets with leading positions and local scale advantages
· The Flutter Edge is our key sustainable competitive advantage and global
differentiator which enables our local brands to both access and contribute to
leading global capabilities across product, technology, expertise and scale
· This all combines to drive our value creation model which we believe positions
us as an "and" business, meaning we have the ability to invest across multiple
opportunities at once. We can invest organically behind strong returns, and
execute value creative M&A, and deliver returns to shareholders
We believe these attributes set Flutter apart and will continue to power our
growth and value creation.
I continue to be really pleased with how the scaling of our US business is
driving a step change in the earnings profile of the Group. Our international
business is also demonstrating the benefits of scale and diversification, with
particularly strong performances in SEA and India. These factors combined to
drive year-over-year net income and adjusted EBITDA(2) growth of 289% and 20%
respectively in the quarter.
As the global economic outlook has shifted, in particular in the US, focus has
been on the potential impact on online sports betting and iGaming. Our
business is resilient and we believe Flutter's historical performance is
instructive. For example, during previous periods of consumer pressure in our
International markets, we saw no discernible impact on our businesses, and we
have conviction that online sports-betting and iGaming have strong defensive
characteristics over the long-term.
Our teams are focused on execution and delivering results on a daily basis,
but it is important to remember that we run the business for the long-term,
often making decisions that impact short-term profitability, for the greater
benefit of longer-term profitability. The nature of sports results will also
influence our quarterly results, as we have seen in our most recent quarters,
but over time these are transient and do not compromise our compelling growth
model and long term value creation opportunity.
Our position as an "and" business is clear to see as we completed another
major milestone in the expansion of our portfolio in Italy with the
acquisition of Snai, and the imminent acquisition of NSX in Brazil, and the
continuation of our share buyback program. With strong organic performance and
multiple levers to drive value creation, we remain very confident in our
long-term outlook and targets.
US update
US leadership maintained
We are continuing to win in the US, powered by our world-class customer
proposition. AMPs(3) grew by 11% to more than 4.3m. This performance
underpinned our clear leadership position with sports betting and iGaming
gross gaming revenue market shares of 43% and 27% respectively in the quarter
and a 48% net gaming revenue (NGR) sportsbook share(4).
US sportsbook innovation continues
Our proprietary pricing capability, and always-on approach to innovation
driven by the Flutter Edge, enables delivery of our market-leading sportsbook
product for our US customers. We believe the richness of the FanDuel product
offering is unmatched and this product advantage continues to drive our
expected structural hold progression, reaching 14.1% in the quarter.
We are really excited about our next-generation pricing capability. Through a
highly intuitive customer interface, enabled by new revolutionary pricing
technology, customers will be able to choose from an almost infinite number of
outcomes across the most relevant and immersive betting markets. Your Way is
the first surfacing of this pricing capability to customers, and the results
to date have been encouraging. The opportunities that this unlocks are unique
and we believe create an amazing platform for long-term innovation across both
our US and International markets.
Other new and innovative features launched during the quarter included Parlay
Your Bracket for March Madness college basketball, helping drive an increase
in Same Game Parlay penetration in the quarter. We also launched Bet back
tokens, a first to market generosity mechanic, which allow customers to turn
their losing bet into a bonus bet. More than a quarter of all March Madness
customers engaged with the token.
Super Bowl LIX delivered record-breaking volumes, customer engagement and
sports outcomes for FanDuel. Overall however, US sports results were customer
friendly in the first quarter driven primarily by an unprecedented number of
winning favorites during March Madness. As I have commented before, the nature
of sports results means that over time, outcomes will naturally fluctuate
around the average and it is these ups and downs that make sports so exciting
and drives engagement. Precedent in our global markets shows that sport
results can be seasonal but normalize in the long-term. For example, in the
UKI, soccer results were very customer friendly in Q4 2021, Q4 2022 and again
in Q4 2023 before reverting to operator friendly outcomes in Q4 2024 with a
cumulative favorable impact from Q4 2021 to date of 15bps. Crucially we remain
extremely confident in our sportsbook pricing and our ability to price each
market based on its expected outcome. This means that over time, sports
results, and therefore our gross revenue margins, will align to expected
outcomes.
US iGaming strategy a clear success
Our focus on direct casino customers continues to deliver fantastic growth.
Although only launched in March, our site-wide jackpots have already seen
strong activity with over 35% of FanDuel customers engaging with the jackpot
feature and more than 500 daily jackpot winners. We also rolled out more
exclusive content to our players, with the first of our quarterly installments
of the iconic Huff 'n Puff family of games quickly becoming our #1 game across
all states in the first 30 days. All these factors combined to grow our
iGaming player base to 1m AMPs for the first time. The network effect of this
large, engaged player base is significant, with refer-a-friend being our
number one source of new customer acquisition, demonstrating the benefits of
our scale and the strength of the FanDuel iGaming proposition.
Growth in pre-2024 US states underpins outlook
The combination of new customer acquisition and revenue margin expansion means
growth in our more mature US states remains strong with online revenue growth
of 9% in pre-2024 states(5), even after adverse March Madness outcomes.
Handle growth in pre-2024 states was 5%. This was in-line with expectations,
but lower than previous quarters, reflecting the continued shift to
higher-revenue margin, but lower-handle parlay and Same Game Parlay products.
Basketball handle growth was lower than anticipated, offset by growth in other
sports. We believe this handle softness is specific to the basketball market,
and we have a number of commercial and product initiatives that will
specifically enhance basketball engagement next season. As we move into the
summer season handle trends remain in line with expectations, with encouraging
MLB trends.
It is worth remembering that handle growth is just one driver of our long-term
revenue growth alongside product-driven structural gross revenue margin
expansion, new customer acquisition, higher retention, wallet-share gains, and
promotional spend efficiencies which all work to drive the most important
output: our net revenue growth, and all before the benefit of any new state
launches.
Best positioned to navigate US regulatory opportunities and challenges
The US regulatory landscape continues to evolve at an exciting pace, and our
experienced government affairs teams continue to work on expanding the map in
the US. We have seen some momentum during 2025, and we remain confident in
both our 2030 expectations for population coverage, and the cadence of roll
outs to 2027.
We are also closely monitoring the developments around futures markets and the
potential direct and indirect opportunities for FanDuel to explore. We already
operate what we believe is the world's largest betting exchange, the Betfair
Exchange, and we have vast experience in this space. Finally, we continue to
impress on state law makers that tax rates must recognize the importance in
fostering continued investment and enabling regulated markets to continue to
grow at strong rates. We remain optimistic that states will take these factors
into account as they evaluate taxation rates.
International update
International growth underpinned by Italy, as we add further scale with Snai
Outside of the US, performance across our newly formed International division
continues to be positive, with year-over-year revenue growth of 1% (3% in
constant currency(6)). We are benefiting from our scale and geographic and
product diversification with good growth in our Southern Europe & Africa
(SEA) region in particular.
We were delighted to welcome Snai into the Group last week. Snai's large
omnichannel presence adds further scale in Italy, enabling the SEA team to
capitalize on the growth opportunity in Europe's largest regulated market. The
acquisition was completed on April 30(th) and an extensive integration program
is already underway. This will enable us to rapidly realize both the
operational and financial benefits of the combination, share Flutter Edge
capabilities, and deliver synergies in-line with our previous guidance.
I have previously referenced the opportunity to further expand our SEA
footprint, and we recently submitted an offer through the tender process for
the Italian Lotto with a majority position in a consortium of industry
leaders. We believe the merits of this deal are compelling, in a market where
we have demonstrated our extensive lottery experience through the success of
our SuperEnalotto proposition and the key role lottery plays supporting our
Italian leadership position. We anticipate the tender outcome will be
announced within the next 3 months, and if successful, would further add to
our scale position in SEA.
Performance within SEA has been very impressive driven by Sisal which achieved
record high Italian quarterly market share of 15.4%(7). The Sisal business is
really benefitting from a combination of local expertise and execution,
combined with the benefits of the Flutter Edge and being part of the larger
Group. We are also seeing very strong growth in Turkey within SEA, where we
have been able to expand our product portfolio online and benefit from very
strong AMP growth.
Continue to leverage Flutter Edge capabilities in UKI & Australia
In UKI, year-over-year revenue growth of 2% moderated from previous quarters,
in part due to the very operator friendly results in the corresponding 2024
quarter. Sportsbook handle was lower as a function of the increased mix of
higher-revenue margin, lower-handle Same Game Parlay products, and softer
volumes in the horse racing market outside of major festivals, including
Cheltenham. UKI structural gross revenue margin continues to expand. This is
driven by ongoing investment in our sportsbook product, including Super Sub,
to offer even more markets, helping drive increased parlay penetration. The
migration of our Sky Bet customers to our in-house platform is progressing
well with over 25% of customers (over two million accounts) already migrated,
with expected completion in Q2. The new platform will enable Sky Bet to fully
access the benefits of the Flutter Edge and provide customers with an even
better user experience.
The strength of our Asia Pacific (APAC) iGaming business, in India, is once
again visible now that the tax changes in Q4 2023 have been lapped, delivering
strong year-over-year iGaming revenue growth of 45% through continued
disciplined customer and product investment. Within APAC sports, in Australia,
we continue to face into the racing industry's structural challenges. We have
been able to partly offset our adverse racing handle trends by expanding our
sports structural gross win margin through ongoing product-led improvements
such as "The Feed" feature, which helped drive parlay penetration, alongside
improved customer generosity sophistication.
M&A in Brazil remains on track as we augment an impressive portfolio of
local hero brands
We have received regulatory clearance and expect to complete the acquisition
of NSX during May, forming a new Flutter Brazil business, and putting us in an
enhanced competitive position in a fast growing, newly regulated market.
Betnacional brings a strong local management team, localized proprietary
technology and a local hero brand which, alongside our existing Betfair Brazil
business and Flutter Edge capabilities, will position us for success in this
very exciting market.
Central and Eastern Europe (CEE), including Adjarabet and MaxBet, grew revenue
by 15% year-over-year. In Georgia and Armenia we successfully launched new
in-house games, while in Serbia, we deployed a new retail loyalty program
which we believe will be critical in delivering on our omnichannel aspirations
in the market.
Growing sustainably through our Positive Impact Plan
We recently published our second annual Sustainability Report, demonstrating
how responsible gaming is central to our strategy. FanDuel's My Spend tool, a
responsible gaming dashboard designed to help customers manage their budgets,
is a great example of how our responsible gaming strategy embeds
sustainability into the products we offer our customers. During the 2024-2025
NFL Season, nearly half of FanDuel's customers reviewed their play using My
Spend. I'm proud of how our brands continue to lead the way in their local
markets, and last year alone we invested $139 million to promote responsible
gaming across our global operations, helping lead industry progress in this
area.
Final thoughts
I am pleased with our first quarter performance, and remain extremely
confident in the long-term fundamentals of our business. The global regulated
market opportunity is significant and growing, and Flutter is uniquely
positioned to win. I am excited by the opportunity for Flutter, and I look
forward to continuing to execute on our key growth drivers over the remainder
of 2025 and beyond.
Sincerely,
Peter Jackson
Flutter CEO
Q1 2025 financial highlights from our CFO
As Peter outlined, we believe we have the key components necessary to deliver
long-term value creation. It is almost a year since I became Flutter CFO and
over that time I have been really satisfied with our progress. We delivered
underlying growth in Q1 in each component of our compelling financial growth
story:
• Group revenue growth of 8%, underpinned by our scale and diversification
• Strong Group net income and adjusted EBITDA(2) growth of 289% and 20%,
respectively
• Capital optionality to invest organically, invest in M&A and return
capital to our shareholders
Turning back to the quarter, we are reporting our Q1 financial performance
using our new segmentation for the first time. We now report two segments, US
and International, with unallocated corporate overhead(8) separately
disclosed. We will continue to provide context and detail regarding the key
drivers of performance in International by region. This reflects how our
operations are managed and resources are allocated following the
reorganization of the business on January 1, 2025. We also believe this
simplified structure will help external audiences understand the Flutter
growth story more easily.
In the US, strong revenue growth year-over-year of 18% included sportsbook
growth of 15%, despite the adverse March Madness outcomes, and very strong
iGaming growth of 32%. Adjusted EBITDA was $161m, more than five times higher
than the prior year as our business delivered significant operating leverage.
Sales and marketing in particular saw good operating leverage of 750bps
year-over-year due to the combination of our maturing state profile, and the
impact of heightened North Carolina investment in the prior year. Our
performance in the quarter also included partial mitigation of the increased
taxes in Illinois introduced on July 1, 2024 in line with our previous
guidance.
In International, revenue of $2bn and adjusted EBITDA of $518m for the quarter
were +3% and +2%, respectively, versus the prior year on a constant
currency(6) basis.
This reflected a strong performance in our SEA and CEE regions combined with
excellent iGaming growth in UKI and in APAC. Across the segment, sports
results were marginally adverse year-over-year, comprising favorable results
year-over-year in SEA and UKI, and unfavorable results in APAC.
Regional revenue growth across our International segment included the
following key moving parts:
· SEA revenue was 14% higher year-over-year driven by SEA AMP growth of 25% to
1.8m in the quarter. Sportsbook revenue growth of 27% benefitted from expanded
structural gross margin and favorable sports results, with iGaming up 8%
· APAC revenue was 13% lower year-over-year (8% on a constant currency basis)
which includes excellent iGaming growth in India of 45% offset by 18% lower
sportsbook revenues in Australia, where unfavorable sports results compounded
the already highlighted horse racing market softness
· APAC revenue was 13% lower year-over-year (8% on a constant currency basis)
which includes excellent iGaming growth in India of 45% offset by 18% lower
sportsbook revenues in Australia, where unfavorable sports results compounded
the already highlighted horse racing market softness
· CEE revenue grew 15%, Brazil revenue was 44% lower (36% on a constant currency
basis) reflecting the newly regulated market registration challenges, while
revenue in our Other regions was 12% lower driven by the impact of market
exits and regulatory change
We operate with high levels of discipline, giving us the agility to respond to
changing trends in our business. The business has many cost levers, and we set
out a $300m cost saving program at our Investor Day, demonstrating our focus
on driving operational and cost efficiency. We are making good progress - the
migration of our Sky Bet customers to our in-house platform is on track to
complete by the end of Q2, and the migration of PokerStars Italian customers
onto Sisal technology is expected to be completed in Q3, a key milestone for
the overall PokerStars transformation.
We are also ensuring we continue to make the right investments in the right
areas. Flutter Edge investment within unallocated corporate overhead increased
by $6m year-over-year, to drive product innovation and optimize the efficiency
of the services we provide across the Group. Unallocated corporate costs
increased by 75% year-over-year primarily due to the Flutter Edge investments
and an $18m credit in the prior year relating to the settlement of historic
litigation.
Overall Group net income grew 289%, while adjusted EBITDA grew 20%. Both
measures include the US driven earnings transformation that Peter has already
described, while net income also includes the impact of the fair value changes
on the Fox Option liability, which swung from a loss in the prior year to a
gain in the current year. Earnings per share increased to $1.57 from a loss of
$1.10 with our adjusted earnings per share up 51%(2) .
From a cashflow perspective, net cash from operating activities reduced by 44%
and free cash flow reduced by 52% year-over-year. Performance was impacted by
a movement in player deposit liabilities which is included in our net cashflow
from operating activities. As the final day of Q1 was a weekday this year,
compared to the prior year when it fell during a weekend, player deposit
liabilities were $211m lower reflecting the smaller cash balances sitting in
customer wallets. While this means that cashflow in Q1 was lower
year-over-year, we remain confident in the cashflow trajectory of the business
over the long-term horizon as set out at our investor day.
Available cash remained unchanged quarter-on-quarter at approximately $1.5bn.
The $88m increase in total debt to $6,824m at March 31, 2025 from $6,736m at
December 31, 2024 was a function of prevailing foreign exchange rates on our
Euro and Sterling denominated debt. Net debt(2) was $5,329m at the end of Q1
2025, with a leverage ratio(2) of 2.2x, based on the last 12 months adjusted
EBITDA (2.2x at December 31, 2024). As per our announcement on April 30,
2025, the acquisition of Snai was completed using existing debt facilities at
attractive terms. We therefore expect our leverage to increase in the near
term, but then reduce rapidly given the highly visible profitable growth
opportunities that exist across the Group. We remain committed to our
medium-term leverage ratio target of 2.0-2.5x.
The share repurchase program, which commenced in November 2024 with up to $5bn
expected to be returned to shareholders over the coming years, continued into
2025 with 891 thousand shares repurchased in the quarter for $230m (of which
$226m was paid in the quarter). We continue to expect to return up to
approximately $1bn of cash to shareholders via the program during 2025.
Financial outlook
Underlying trends overall have been in line with expectations and our 2025
outlook(9) is therefore only updated to reflect (i) the impact since our Q4
earnings of US sports results(10) and foreign currency movements(11), and (ii)
the anticipated contributions from Snai, completed on April 30, 2025, and NSX,
expected to complete during May(12). Together these acquisitions are expected
to add $1.07bn in revenue and $120m in adjusted EBITDA to the Group's 2025
results.
The changes to the midpoints of our previous guidance are summarized in the
table below:
US International Corporate Ex-US Group
($ in millions) Revenue Adjusted EBITDA Revenue Adjusted EBITDA Adjusted EBITDA Revenue Adjusted EBITDA Revenue Adjusted EBITDA
US existing states 7,720 1,400
US new states (40) (90)
Previous Guidance 7,680 1,310 8,250 2,080 (230) 8,250 1,850 15,930 3,160
US sports results (280) (180) (280) (180)
Foreign currency 360 100 (20) 360 80 360 80
Snai acquisition 850 190 850 190 850 190
NSX acquisition 220 (70) 220 (70) 220 (70)
Change (280) (180) 1,430 220 (20) 1,430 200 1,150 20
Revised Guidance 7,400 1,130 9,680 2,300 (250) 9,680 2,050 17,080 3,180
US existing states 7,440 1,220
Our updated outlook for 2025 now includes the following midpoints:
Group: revenue and adjusted EBITDA of $17.08bn and $3.18bn representing 22%
and 35% year-over-year growth, respectively (14% and 30% before including the
benefit of Snai and NSX)
US: revenue and adjusted EBITDA of $7.40bn and $1.13bn, representing
year-over-year growth of 28% and 123%, respectively, and comprising:
· Existing state revenue of $7.44bn and adjusted EBITDA of $1.22bn. This
represents year-over-year growth of 28% and 141%, respectively, which on a
normalized basis remains unchanged from our investor day guidance of 22.5%
revenue growth and 5.4 percentage points of adjusted EBITDA margin expansion
· New state and territory launches with negative revenue of $40m and adjusted
EBITDA cost of $90m based on a Q4 launch for Missouri and an early 2026 launch
for Alberta, Canada (unchanged since Q4 earnings)
International: revenue and adjusted EBITDA of $9.68bn and $2.30bn representing
year-over-year growth of 17% and 11%, respectively.
Unallocated corporate overhead: cost increased to $250m to include impact of
foreign currency headwinds of $20m since previous guidance was issued.
Other items: are also updated to reflect the impact of acquisitions and
changes in foreign currency. Details of the changes to other items, together
with our various guidance ranges are set out in the table below.
Updated 2025 guidance(9) Previous
Low High Low High
Group revenue $16.63bn $17.53bn $15.48bn $16.38bn
Group adjusted EBITDA $2.96bn $3.40bn $2.94bn $3.38bn
US existing state(5) revenue $7.19bn $7.69bn $7.47bn $7.97bn
US existing state adjusted EBITDA $1.10bn $1.34bn $1.28bn $1.52bn
US new states revenue cost ($40m) ($40m)
US new states adjusted EBITDA ($90m) ($90m)
US total revenue $7.15bn $7.65bn $7.43bn $7.93bn
US total adjusted EBITDA $1.01bn $1.25bn $1.19bn $1.43bn
International organic revenue $8.41bn $8.81bn $8.05bn $8.45bn
International organic EBITDA $2.08bn $2.28bn $1.98bn $2.18bn
International new acquisitions(12) revenue $1.07bn Not applicable
International new acquisitions EBITDA $120m Not applicable
International total revenue $9.48bn $9.88bn $8.05bn $8.45bn
International total adjusted EBITDA $2.20bn $2.40bn $1.98bn $2.18bn
Unallocated corporate overhead $250m $230m
Interest expense, net $480m $500m $360m $380m
Depreciation and amortization excl. acquired intangibles Approximately $670m Approximately $580m
Capital expenditure(13) Approximately $820m Approximately $710m
Share repurchases Unchanged Up to $1bn
Guidance is provided (i) on the basis that sports results are in line with our
expected margin for the remainder of the year, (ii) at current foreign
exchange rates and (iii) on the basis of a consistent regulatory and tax
framework except where otherwise stated.
A reconciliation of our forward-looking non-GAAP financial measures to the
most directly comparable GAAP financial measure cannot be provided without
unreasonable effort. This is due to the inherent difficulty of accurately
forecasting the occurrence and financial impact of the adjusting items
necessary for such a reconciliation to be prepared of items that have not yet
occurred, are out of our control, or cannot be reasonably predicted.
To conclude, like Peter, I am encouraged by the strong positioning of the
business and look forward to continuing to deliver on this exciting growth
opportunity ahead of us.
Sincerely,
Rob Coldrake
Flutter CFO
Conference call:
Flutter management will host a conference call today at 4:30 p.m. ET (9:30
p.m. BST) to review the results and be available for questions, with access
via webcast and telephone.
A public audio webcast of management's call and the related Q&A can be
accessed by registering here (https://events.q4inc.com/attendee/478080225) or
via www.flutter.com/investors. For those unable to listen to the live
broadcast, a replay will be available approximately one hour after the
conclusion of the call. This earnings release and supplementary materials will
also be made available via www.flutter.com/investors.
Analysts and investors who wish to participate in the live conference call
must do so by dialing any of the numbers below and using conference ID 20251.
Please dial in 10 minutes before the conference call begins.
+1 888 500 3691 (North America)
+44 800 358 0970 (United Kingdom)
+353 1800 943926 (Ireland)
+61 1800 519 630 (Australia)
+1 646 307 1951 (International)
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements reflect
our current expectations as to future events based on certain assumptions and
include any statement that does not directly relate to any historical or
current fact. These statements include, but are not limited, to statements
related to our expectations regarding the performance of our business, our
financial results, our operations, our liquidity and capital resources, the
conditions in our industry and our growth strategy. In some cases, you can
identify these forward-looking statements by the use of words such as
"outlook", "believe(s)", "expect(s)", "potential", "continue(s)", "may",
"will", "should", "could", "would", "seek(s)", "predict(s)", "intend(s)",
"trends", "plan(s)", "estimate(s)", "anticipates", "projection", "goal",
"target", "aspire", "will likely result", and or the negative version of these
words or other comparable words of a future or forward-looking nature. Such
forward-looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could cause actual
outcomes or results to differ materially from those indicated in these
statements. Such factors include, among others: Flutter's ability to
effectively compete in the global entertainment and gaming industries;
Flutter's ability to retain existing customers and to successfully acquire new
customers; Flutter's ability to develop new product offerings; Flutter's
ability to successfully acquire and integrate new businesses; Flutter's
ability to maintain relationships with third-parties; Flutter's ability to
maintain its reputation; public sentiment towards online betting and iGaming
generally; the potential impact of general economic conditions, including
inflation, tariffs and/or trade disputes fluctuating interest rates and
instability in the banking system, on Flutter's liquidity, operations and
personnel; Flutter's ability to obtain and maintain licenses with gaming
authorities, adverse changes to the regulation (including taxation) of online
betting and iGaming; the failure of additional jurisdictions to legalize and
regulate online betting and iGaming; Flutter's ability to comply with complex,
varied and evolving U.S. and international laws and regulations relating to
its business; Flutter's ability to raise financing in the future; Flutter's
success in retaining or recruiting officers, key employees or directors;
litigation and the ability to adequately protect Flutter's intellectual
property rights; the impact of data security breaches or cyber-attacks on
Flutter's systems; and Flutter's ability to remediate material weaknesses in
its internal control over financial reporting.
Additional factors that could cause the Company's results to differ materially
from those described in the forward-looking statements can be found in Part I,
"Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2024 filed with the Securities and Exchange
Commission (the "SEC") on March 4, 2025 and other periodic filings with the
SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly,
there are or will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these statements. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included in the
Company's filings with the SEC. The Company undertakes no obligation to
publicly update or review any forward-looking statement, whether as a result
of new information, future developments or otherwise, except as required by
law.
About Flutter Entertainment plc
Flutter is the world's leading online sports betting and iGaming operator,
with a market leading position in the US and across the world. Our ambition is
to leverage our significant scale and our challenger mindset to change our
industry for the better. By Changing the Game, we believe we can deliver
long-term growth while promoting a positive, sustainable future for all our
stakeholders. We are well-placed to do so through the distinctive, global
competitive advantages of the Flutter Edge, which gives our brands access to
group-wide benefits to stay ahead of the competition, as well as our clear
vision for sustainability through our Positive Impact Plan.
Flutter operates a diverse portfolio of leading online sports betting and
iGaming brands including FanDuel, Sky Betting & Gaming, Sportsbet,
PokerStars, Paddy Power, Sisal, Snai, tombola, Betfair, MaxBet, Junglee Games
and Adjarabet. We are the industry leader with $14,048m of revenue globally
for fiscal 2024, up 19% YoY, and $3,665m of revenue globally for the quarter
ended March 31, 2025.
Contacts:
Investor Relations: Media Relations:
Paul Tymms, Investor Relations Kate Delahunty, Corporate Communications
Ciara O'Mullane, Investor Relations Lindsay Dunford, Corporate Communications
Chris Hancox, Investor Relations Rob Allen, Corporate Communications
Email: investor.relations@flutter.com Email: corporatecomms@flutter.com
Notes
1. Management estimate of global total addressable market as of 25 September
2025.
2. Adjusted EBITDA, adjusted EBITDA margin, Free Cash Flow, net debt, leverage
ratio, constant currency, adjusted net income attributable to Flutter
shareholders and adjusted earnings per share are non-GAAP financial measures.
See "Definitions of non-GAAP financial measures" and "Reconciliations of
Non-GAAP Financial Measures" sections of this document for definitions of
these measures and reconciliations to the most directly comparable financial
measures calculated in accordance with GAAP. Due to rounding, these numbers
may not add up precisely to the totals provided.
3. Average Monthly Players ("AMPs") is defined as the average over the applicable
reporting period of the total number of players who have placed and/or wagered
a stake and/or contributed to rake or tournament fees during the month. This
measure does not include individuals who have only used new player or player
retention incentives, and this measure is for online players only and excludes
retail player activity. In circumstances where a player uses multiple product
categories within one brand, we are generally able to identify that it is the
same player who is using multiple product categories and therefore count this
player as only one AMP at the Group level while also counting this player as
one AMP for each separate product category that the player is using. As a
result, the sum of the AMPs presented at the product category level is greater
than the total AMPs presented at the Group level. See Part II, "Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations-Key Operational Metrics" of Flutter's Annual Report on Form 10-K
for the year ended December 31, 2024 filed with the SEC on March 4, 2025 for
additional information regarding how we calculate AMPs data, including a
discussion regarding duplication of players that exists in such data.
4. US market position based on available market share data for states in which
FanDuel is active. Online sportsbook market share is the gross gaming revenue
(GGR) and net gaming revenue (NGR) market share of our FanDuel brand for the
three months to March 31, 2025 in the states in which FanDuel was live
(excluding Tennessee as they no longer report this data), based on published
gaming regulator reports in those states. iGaming market share is the GGR
market share of FanDuel for the three months to March 31, 2025 in the states
in which FanDuel was live, based on published gaming regulator reports in
those states. US iGaming GGR market share including PokerStars US (which is
reported in the International segment) for the three months to March 31, 2025
was 27%.
5. US analysis by state cohort includes the states and provinces by FanDuel
launch date. Pre-2024, states include: New Jersey, Pennsylvania, West
Virginia, Indiana, Colorado, Illinois, Iowa, Michigan, Tennessee, Virginia,
Arizona, Connecticut, New York, Ontario, Louisiana, Wyoming, Kansas, Maryland,
Ohio, Massachusetts, Kentucky.
6. Constant currency growth rates are calculated by retranslating the non-US
dollar denominated component of Q1 2024 at Q1 2025 exchange rates. See
reconciliation on page 21.
7. Italian market position and share based on regulator GGR data from Agenzia
delle dogane e dei Monopoli.
8. Unallocated corporate overhead includes shared technology, research and
development, sales and marketing, and general and administrative expenses that
are not allocated to a specific segment.
9. A reconciliation of our forward-looking non-GAAP financial measures to the
most directly comparable GAAP financial measure cannot be provided without
unreasonable effort. This is due to the inherent difficulty of accurately
forecasting the occurrence and financial impact of the adjusting items
necessary for such a reconciliation to be prepared of items that have not yet
occurred, are out of our control, or cannot be reasonably predicted.
10. Year to date sports results impact is $280m in revenue and $180m in adjusted
EBITDA. The Q1 impact was $230m revenue and $150m of adjusted EBITDA primarily
arising in March. The April impact was $50m in revenue and $30m in adjusted
EBITDA. Both impacts include an estimate for the benefit of recycling.
11. Foreign exchange rates assumed in year to go forecasts for 2025 guidance are
per the prevailing rates on April 30 of USD:GBP of 0.746, USD:EUR of 0.878 and
USD:AUD of 1.563.
12. In the event either the acquisition of NSX does not complete or the completion
is not within the stipulated timeline, by the end of May, guidance will be
updated accordingly.
13. Capital expenditure is defined as payments for the purchase of property and
equipment, the purchase of intangible assets and capitalized software.
Definitions of non-GAAP financial measures
This press release includes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted
Net Income Attributable to Flutter Shareholders, Adjusted Earnings Per Share
("Adjusted EPS"), leverage ratio, Net Debt, Free Cash Flow, and constant
currency which are non-GAAP financial measures that we use to supplement our
results presented in accordance with U.S. generally accepted accounting
principles ("GAAP"). These non-GAAP measures are presented solely as
supplemental disclosures to reported GAAP measures because we believe that
these non-GAAP measures are useful in evaluating our operating performance,
similar to measures reported by its publicly-listed U.S. competitors, and
regularly used by analysts, lenders, financial institutional and investors as
measures of performance. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net
Income Attributable to Flutter Shareholders, Adjusted EPS, leverage ratio, Net
Debt, Free Cash Flow, and Adjusted Depreciation are not intended to be
substitutes for any GAAP financial measures, and, as calculated, may not be
comparable to other similarly titled measures of performance of other
companies in other industries or within the same industry.
Constant currency reflects certain operating results on a constant-currency
basis in order to facilitate period-to-period comparisons of our results
without regard to the impact of fluctuating foreign currency exchange rates.
The term foreign currency exchange rates refer to the exchange rates used to
translate our operating results for all countries where the functional
currency is not the U.S. Dollar, into U.S. Dollars. Because we are a global
company, foreign currency exchange rates used for translation may have a
significant effect on our reported results. In general, our financial results
are affected positively by a weaker U.S. Dollar and are affected negatively by
a stronger U.S. Dollar. References to operating results on a constant-currency
basis mean operating results without the impact of foreign currency exchange
rate fluctuations. We believe the disclosure of constant-currency results is
helpful to investors because it facilitates period-to-period comparisons of
our results by increasing the transparency of our underlying performance by
excluding the impact of fluctuating foreign currency exchange rates. We
calculate constant currency revenue, Adjusted EBITDA and Segment Adjusted
EBITDA by translating prior-period revenue, Adjusted EBITDA and Segment
Adjusted EBITDA, as applicable, using the average exchange rates from the
current period rather than the actual average exchange rates in effect in the
prior period.
Adjusted EBITDA is defined on a Group basis as net income (loss) before income
taxes; other income, net; interest expense, net; depreciation and
amortization; transaction fees and associated costs; restructuring and
integration costs; impairment of PPE and intangible assets and share based
compensation expense.
Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue,
respectively.
Adjusted Net Income Attributable to Flutter Shareholders is defined as net
income (loss) as adjusted for after-tax effects of transaction fees and
associated costs; restructuring and integration costs; gaming taxes dispute,
amortization of acquired intangibles, accelerated amortization, loss (gain) on
settlement of long-term debt; impairment of PPE and intangible assets;
financing related fees not eligible for capitalization; gain from disposal of
businesses, fair value (gain)/loss on derivative instruments, fair value
(gain)/loss on contingent consideration, fair value (gain)/loss on Fox Option
Liability and fair value (gain)/loss on investment, and share-based
compensation.
Adjusted EPS is calculated by dividing adjusted net income attributable to
Flutter shareholders by the number of diluted weighted-average ordinary shares
outstanding in the period.
Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net income attributable to
Flutter shareholders and Adjusted EPS are non-GAAP measures and should not be
viewed as measures of overall operating performance, indicators of our
performance, considered in isolation, or construed as alternatives to
operating profit (loss), net income (loss) measures or earnings per share, or
as alternatives to net cash provided by (used in) operating activities, as
measures of liquidity, or as alternatives to any other measure determined in
accordance with GAAP.
Management has historically used these measures when evaluating operating
performance because we believe that they provide additional perspective on the
financial performance of our core business.
Adjusted EBITDA has further limitations as an analytical tool. Some of these
limitations are:
· it does not reflect the Group's cash expenditures or future requirements for
capital expenditure or contractual commitments;
· it does not reflect changes in, or cash requirements for, the Group's working
capital needs;
· it does not reflect interest expense, or the cash requirements necessary to
service interest or principal payments, on the Group's debt
· it does not reflect shared-based compensation expense which is primarily a
non-cash charge that is part of our employee compensation;
· although depreciation and amortization are non-cash charges, the assets being
depreciated and amortized will often have to be replaced in the future, and
Adjusted EBITDA does not reflect any cash requirements for such replacements;
· it is not adjusted for all non-cash income or expense items that are reflected
in the Group's statements of cash flows; and
· the further adjustments made in calculating Adjusted EBITDA are those that
management consider not to be representative of the underlying operations of
the Group and therefore are subjective in nature.
Net debt is defined as total debt, excluding premiums, discounts, and deferred
financing expense, and the effect of foreign exchange that is economically
hedged as a result of our cross-currency interest rate swaps reflecting the
net cash outflow on maturity less cash and cash equivalents.
Leverage ratio is defined as net debt divided by last twelve months Adjusted
EBITDA. We use this non-GAAP financial measure to evaluate our financial
leverage. We present net debt to Adjusted EBITDA because we believe it is more
representative of our financial position as it is reflective of our ability to
cover our net debt obligations with results from our core operations, and is
an indicator of our ability to obtain additional capital resources for our
future cash needs. We believe net debt is a meaningful financial measure that
may assist investors in understanding our financial condition and recognizing
underlying trends in our capital structure. The Leverage Ratio is not a
substitute for, and should be used in conjunction with, GAAP financial ratios.
Other companies may calculate leverage ratios differently.
Free Cash Flow is defined as net cash provided by (used in) operating
activities less payments for property and equipment, intangible assets and
capitalized software. We believe that excluding these items from free cash
flow better portrays our ability to generate cash, as such items are not
indicative of our operating performance for the period. This non-GAAP measure
may be useful to investors and other users of our financial statements as a
supplemental measure of our cash performance, but should not be considered in
isolation, as a measure of residual cash flow available for discretionary
purposes, or as an alternative to operating cash flows presented in accordance
with GAAP. Free Cash Flow does not necessarily represent funds available for
discretionary use and is not necessarily a measure of our ability to fund our
cash needs. Our calculation of Free Cash Flow may differ from similarly titled
measures used by other companies, limiting their usefulness as a comparative
measure.
Adjusted depreciation is defined as depreciation and amortization excluding
amortization of acquired intangibles.
Condensed Consolidated Balance Sheets
($ in millions except share and per share amounts) As of As of
March 31, December 31,
2025 2024
Current assets:
Cash and cash equivalents 1,537 1,531
Cash and cash equivalents - restricted 54 48
Player deposits - cash and cash equivalents 1,802 1,930
Player deposits - investments 127 130
Accounts receivable, net 109 98
Prepaid expenses and other current assets 612 607
Total current assets 4,241 4,344
Investments 7 6
Property and equipment, net 490 493
Operating lease right-of-use assets 523 507
Intangible assets, net 5,456 5,364
Goodwill 13,736 13,352
Deferred tax assets 241 267
Other non-current assets 131 175
Total assets 24,825 24,508
Liabilities, redeemable non-controlling interests and shareholders' equity
Current liabilities:
Accounts payable 359 266
Player deposit liability 1,832 1,940
Operating lease liabilities 121 119
Long-term debt due within one year 68 53
Other current liabilities 2,089 2,212
Total current liabilities: 4,469 4,590
Operating lease liabilities - non-current 446 428
Long-term debt 6,756 6,683
Deferred tax liabilities 595 605
Other non-current liabilities 786 935
Total liabilities 13,052 13,241
Commitments and contingencies
Redeemable non-controlling interests 1,737 1,808
Shareholders' equity
Ordinary share (Authorized 3,000,000,000 shares of €0.09 ($0.10) par value 36 36
each; issued March 31, 2025: 177,186,883 shares; December 31, 2024:
177,895,367 shares)
Shares held by employee benefit trust, at cost March 31, 2025: nil, - -
December 31, 2024: nil
Additional paid-in capital 1,670 1,611
Accumulated other comprehensive loss (1,591) (1,927)
Retained earnings 9,748 9,573
Total Flutter Shareholders' Equity 9,863 9,293
Non-controlling interests 173 166
Total shareholders' equity 10,036 9,459
Total liabilities, redeemable non-controlling interests and shareholders' 24,825 24,508
equity
Condensed Consolidated Statements of Comprehensive Income (Loss)
($ in millions except share and per share amounts) Three months ended March 31,
2025 2024
Revenue 3,665 3,397
Cost of Sales (1,956) (1,793)
Gross profit 1,709 1,604
Technology, research and development expenses (215) (190)
Sales and marketing expenses (840) (881)
General and administrative expenses (431) (409)
Operating profit (loss) 223 124
Other income (expense), net 216 (174)
Interest expense, net (85) (112)
Income (loss) before income taxes 354 (162)
Income tax expense (19) (15)
Net income (loss) 335 (177)
Net (loss) income attributable to non-controlling interests and redeemable 3 4
non-controlling interests
Adjustment of redeemable non-controlling interest to redemption value 49 15
Net income (loss) attributable to Flutter shareholders 283 (196)
Earnings (loss) per share
Basic 1.59 (1.10)
Diluted 1.57 (1.10)
Other comprehensive income (loss), net of tax:
Effective portion of changes in fair value of cash flow hedges (44) 23
Fair value of cash flow hedges transferred to the income statement 36 (14)
Changes in excluded components of fair value hedge (1) -
Foreign exchange loss on net investment hedges (14) (21)
Foreign exchange gain (loss) on translation of the net assets of foreign 369 (185)
currency denominated entities
Fair value movements on available for sale debt instruments - (1)
Other comprehensive income (loss) 346 (198)
Other comprehensive income (loss) attributable to Flutter shareholders 336 (188)
Other comprehensive income (loss) attributable to non-controlling interest and 10 (10)
redeemable non-controlling interest
Total comprehensive income (loss) 681 (375)
Condensed Consolidated Statements of Cash Flows
Three months ended March 31,
($ in millions) 2025 2024
Cash flows from operating activities
Net loss 335 (177)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization 294 297
Change in fair value of derivatives - (15)
Non-cash interest expense (income), net 12 (1)
Non-cash operating lease expense 43 32
Unrealized foreign currency exchange (gain) loss, net (8) 8
Gain on disposals (3) -
Share-based compensation - equity classified 56 40
Share-based compensation - liability classified 1 1
Other income (expense), net (205) 186
Deferred tax expense (benefit) 1 (48)
Change in operating assets and liabilities:
Player deposits 9 -
Accounts receivable (9) 19
Prepaid expenses and other current assets (1) 13
Accounts payable 84 (18)
Other liabilities (236) (40)
Player deposit liability (147) 73
Operating leases liabilities (38) (33)
Net cash provided by operating activities 188 337
Cash flows from investing activities:
Purchases of property and equipment (19) (22)
Purchases of intangible assets (33) (57)
Capitalized software (48) (73)
Acquisitions, net of cash acquired - (107)
Proceeds from disposal of intangible assets 5 -
Cash settlement of derivatives designated in net investment hedge 4 -
Other advances (9) -
Net cash used in investing activities (100) (259)
Cash flows from financing activities:
Proceeds from issue of ordinary share upon exercise of options 3 14
Proceeds from issuance of long-term debt (net of transactions costs) - 639
Repayment of long-term debt (10) (834)
Distributions to non-controlling interests (4) -
Payment of contingent consideration (16) -
Repurchase of ordinary shares and taxes withheld and paid on employee share (244) -
awards
Net cash used in financing activities (271) (181)
Net increase in cash, cash equivalents and restricted cash (183) (103)
Cash, cash equivalents and restricted cash - Beginning of the period 3,509 3,271
Foreign currency exchange gain (loss) on cash and cash equivalents 67 (11)
Cash, cash equivalents and restricted cash - End of the period 3,393 3,157
Cash, cash equivalents and restricted cash comprise of:
Cash and cash equivalents 1,537 1,353
Cash and cash equivalents - restricted 54 22
Player deposits - cash & cash equivalents 1,802 1,782
Cash, cash equivalents and restricted cash - End of the period 3,393 3,157
Supplemental disclosures of cash flow information:
Interest paid 91 123
Income tax paid (net of refunds) 21 29
Operating cash flows from operating leases 38 38
Non-cash investing and financing activities:
Purchase of intangible assets with accrued expense 91 -
Right of use assets obtained in exchange for new operating lease liabilities 15 20
Adjustments to lease balances as a result of remeasurement 25 (2)
Business acquisitions (including contingent consideration) - 26
Reconciliations of non-GAAP financial measures
Adjusted EBITDA reconciliation
See below a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to
net income, the most comparable GAAP measure.
Three months ended March 31,
($ in millions) 2025 2024
Net income (loss) 335 (177)
Add back:
Income taxes 19 15
Other income (expense), net (216) 174
Interest expense, net 85 112
Depreciation and amortization 294 297
Share-based compensation expense 57 41
Transaction fees and associated costs (1) 1 29
Restructuring and integration costs (2) 41 23
Group Adjusted EBITDA 616 514
Group Revenue 3,665 3,397
Group Adjusted EBITDA Margin 16.8% 15.1%
1. Fees primarily associated with (i) transaction costs related to Snaitech and
NSX during the three months ended March 31, 2025; and (ii) advisory fees
related to implementation of internal controls, information system changes and
other strategic advisory related to the change in the primary listing of the
Group during the three months ended March 31, 2024.
2. During the three months ended March 31, 2025, costs of $41 million (three
months ended March 31, 2024: $23 million) primarily relate to various
restructuring and other strategic initiatives to drive synergies. The programs
are expected to run until 2027. These actions include efforts to consolidate
and integrate our technology infrastructure, back-office functions and
relocate certain operations to lower cost locations. It also includes business
process re-engineering cost, planning and design of target operating models
for the Group's enabling functions and discovery and planning related to the
Group's anticipated migration to a new enterprise resource planning system.
The costs primarily include severance expenses, advisory fees and temporary
staffing costs.
Adjusted net income attributable to Flutter shareholders
See below a reconciliation of Adjusted net income attributable to Flutter
shareholders to net income/ (loss), the most comparable GAAP measure.
Three months ended March 31,
($ in millions) 2025 2024
Net income (loss) 335 (177)
Less:
Transaction fees and associated costs 1 29
Restructuring and integration costs 41 23
Amortization of acquired intangibles 158 172
Share-based compensation 57 41
Loss on settlement of long-term debt - -
Financing related fees not eligible for capitalization 1 -
Fair value (gain) / loss on derivative instruments - (15)
Fair value (gain) / loss on contingent consideration - -
Fair value (gain) / loss on Fox Option Liability (205) 184
Fair value (gain) / loss on Investment - 2
Tax impact of above adjustments(1) (50) (51)
Adjusted net income 338 208
Less:
Net income attributable to non-controlling interests and redeemable 3 4
non-controlling interests(2)
Adjustment of redeemable non-controlling interest(3) 49 15
Adjusted net income attributable to Flutter shareholders 286 189
Weighted average number of shares 180 178
1. Tax rates used in calculated adjusted net income attributable to Flutter
shareholders is the statutory tax rate applicable to the geographies in which
the adjustments were incurred.
2. Represents net loss attributed to the non-controlling interest in Sisal and
the redeemable non-controlling interest in FanDuel, MaxBet and Junglee.
3. Represents the adjustment made to the carrying value of the redeemable
non-controlling interests in Junglee and MaxBet to account for the higher of
(i) the initial carrying amount adjusted for cumulative earnings allocations,
or (ii) redemption value at each reporting date through retained earnings.
Adjusted earnings per share reconciliation
See below a reconciliation of adjusted earnings per share to diluted earnings
per share, the most comparable GAAP measure.
Three months ended March 31,
$ 2025 2024
Earnings / (loss) per share to Flutter shareholders 1.57 (1.10)
Add/ (Less):
Transaction fees and associated costs 0.01 0.16
Restructuring and integration costs 0.23 0.13
Amortization of acquired intangibles 0.88 0.96
Share-based compensation 0.31 0.23
Loss on settlement of long-term debt - -
Financing related fees not eligible for capitalization 0.01 -
Fair value (gain) / loss on derivative instruments - (0.08)
Fair value (gain) / loss on contingent consideration - -
Fair value (gain) / loss on Fox Option Liability (1.14) 1.02
Fair value (gain) / loss on Investment - 0.01
Tax impact of above adjustments (0.28) (0.28)
Adjusted earnings per share 1.59 1.05
Net debt reconciliation
See below a reconciliation of net debt to long-term debt, the most comparable
GAAP measure.
($ in millions) As of As of
March 31, December 31,
2025 2024
Long-term debt 6,756 6,683
Long-term debt due within one year 68 53
Total Debt 6,824 6,736
Add:
Transactions costs, premiums or discount included in the carrying value of 49 52
debt
Less:
Unrealized foreign exchange on translation of foreign currency debt (1) (7) (97)
Cash and cash equivalents (1,537) (1,531)
Net Debt 5,329 5,160
1. Representing the adjustment for foreign exchange that is economically hedged
as a result of our cross-currency interest rate swaps to reflect the net cash
outflow on maturity.
Free Cash Flow reconciliation
See below a reconciliation of Free Cash Flow to net cash provided by operating
activities, the most comparable GAAP measure.
Three months ended March 31,
($ in millions) 2025 2024
Net cash provided by operating activities 188 337
Less cash impact of:
Purchases of property and equipment (19) (22)
Purchases of intangible assets (33) (57)
Capitalized software (48) (73)
Free Cash Flow 88 185
Constant currency ('CC') growth rate reconciliation
See below a reconciliation of constant currency growth rates to nominal
currency growth rates, the most comparable GAAP measure.
($ millions except percentages) Three months ended March 31,
Unaudited 2025 2024 YOY 2025 2024 YOY
FX impact CC CC
Revenue
US 1,666 1,410 +18% (1) 1,409 +18%
International 1,999 1,987 +1% (53) 1,934 +3%
Group 3,665 3,397 +8% (55) 3,342 +10%
Adjusted EBITDA
US 161 26 +519% 1 27 +496%
International 518 524 (1)% (16) 508 +2%
Unallocated corporate overhead (63) (36) +75% 3 (33) +90%
Group 616 514 +20% (12) 502 +23%
See below a reconciliation of other reported constant currency revenue growth
rates to nominal currency growth rates.
Three months ended March 31, 2025
Unaudited YoY YoY YoY
Nom FX impact CC
International sportsbook (2)% (2)% 0%
International iGaming +4% (3)% +7%
Turkey +57% (27)% +84%
Reconciliation of supplementary non GAAP information: Adjusted depreciation
and amortization
($ millions) Three months ended March 31, 2025 Three months ended March 31, 2024
Unaudited US Intl Corp Total US Intl Corp Total
Depreciation and Amortization 33 250 11 294 29 262 6 297
Less: Amortization of acquired intangibles (4) (154) - (158) (4) (168) - (172)
Adjusted depreciation and amortization(1) 29 96 11 136 25 94 6 125
1. Adjusted depreciation and amortization is defined as depreciation and
amortization excluding amortization of acquired intangibles
Segment KPIs
($ millions except percentages) Three months ended March 31, 2025 YOY
Unaudited US Intl US Intl
Average monthly players ('000s) 4,312 10,568 +11% +8%
Sportsbook stakes 14,606 6,912 +8% (6)%
Sportsbook net revenue margin 7.8% 12.7% +50bps +50bps
Sportsbook revenue 1,134 880 +15% (2)%
iGaming revenue 472 1,050 +32% +4%
Other revenue 60 69 (9)% (15)%
Total revenue 1,666 1,999 +18% +1%
Adjusted EBITDA 161 518 +519% (1)%
Adjusted EBITDA margin 9.7% 25.9% +790bps (50)bps
Additional information: Segment operating expenses
Cost of sales 956 880 +15% +2%
Technology, research and development expenses 82 95 +49% (4)%
Sales & marketing expenses 374 309 (11)% (3)%
General and administrative expenses 93 197 +26% +6%
International revenue by region
($ millions except percentages) Three months ended March 31,
Unaudited 2025 2024 YoY YoY YoY
Nom FX impact CC
UK and Ireland 882 861 +2% (1)% +3%
Southern Europe and Africa 448 394 +14% (5)% +19%
Asia Pacific 313 358 (13)% (5)% (8)%
Central and Eastern Europe 140 122 +15% (3)% +18%
Brazil 9 16 (44)% (8)% (36)%
Other regions 207 236 (12)% (3)% (9)%
Total segment revenue 1,999 1,987 +1% (2)% +3%
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