REG - FlutterEntertainment - Q4 and Fiscal Year 2024 Earnings
05/03/2025 07:00
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RNS Number : 3830Z Flutter Entertainment PLC 05 March 2025
Flutter Entertainment Reports Fourth Quarter 2024 Financial Results
March 4, 2025 (New York): Flutter Entertainment (NYSE:FLUT; LSE:FLTR), the
world's leading online sports betting and iGaming operator, announces Q4 and
full year 2024 results and introduces 2025 guidance.
Key financial highlights:
In $ millions except where stated otherwise Three months ended December 31 Fiscal year ended December 31
2024 2023 YOY 2024 2023 YOY
Average monthly players (AMPs) ('000s)(1) 14,605 13,588 +7% 13,898 12,325 +13%
Revenue 3,792 3,313 +14% 14,048 11,790 +19%
Net income (loss) 156 (902) +117% 162 (1,211) +113%
Net income (loss) margin 4.1% (27.2)% +3,130bps 1.2% (10.3)% +1,150bps
Adjusted EBITDA(2,3) 655 632 +4% 2,357 1,875 +26%
Adjusted EBITDA Margin(2) 17.3% 19.1% (180)bps 16.8% 15.9% +90bps
Earnings (loss) per share ($) 0.45 (5.14) +109% 0.24 (6.89) +103%
Adjusted earnings per share ($)(2) 2.94 1.76 +67% 7.27 4.42 +64%
Net cash provided by operating activities 652 391 +67% 1,602 937 +71%
Free Cash Flow(2) 473 172 +175% 941 335 +181%
Leverage ratio(2) 2.2x 3.1x (0.9)x
FY 2024 highlights:
Unparalleled scale and strategic execution underpinned Flutter's global
leadership during the year:
● Strong full year 2024 performance; AMPs +13% and revenue +19%
● FanDuel leadership extended; now number one operator for both sportsbook and
iGaming(4)
● Ex-US portfolio expanded; MaxBet added, substantial growth from local heroes
in UK and Italy
● Significant earnings transformation; net income +113%, Adjusted EBITDA +26% as
US rapidly scales
● Excellent cash conversion; net cash provided by operating activities +$0.7bn
year-over-year
● Balance sheet further strengthened; leverage ratio 2.2x, reduced from 3.1x at
December 31, 2023
● Share repurchase program commenced; $121m returned in Q4 with up to $1bn
expected in 2025
● Strong momentum carried into 2025
Q4 2024 overview:
● Encouraging Q4 with Group AMPs +7%, revenue +14%, net income+117%, and
Adjusted EBITDA +4% positioning Flutter exceptionally well for 2025
● Net income +117% to $156m included the non-cash impact of a (i) $134m acquired
intangibles amortization charge and (ii) $212m fair value loss on Fox Option
liability. The Q4 2023 net loss included a $725m impairment charge5
● US: Online gross gaming revenue (GGR) market share 36%(4) (sportsbook GGR:
43%, sportsbook net gaming revenue (NGR): 49% and iGaming GGR: 26%):
− Revenue +14% despite the most customer friendly NFL results in 20 years
− Leading product delivered record sportsbook structural gross revenue margin of
14.5%, and excellent iGaming revenue growth of 43%
− Healthy customer acquisition opportunity with payback periods of less than 18
months6 in line with 2024 year-to-date trends
− Strong pre-2022 state growth, despite the impact of sports results, with
online revenue +9%7
− Adjusted EBITDA -3% at $163m, as good underlying momentum was offset by sports
results
● Group Ex-US: Revenue +14% driven by structural sportsbook revenue margin
expansion, favorable sports results and excellent iGaming momentum:
− UKI strength driven by sustained sportsbook and iGaming product innovation
− International division leveraging the Flutter Edge with 'consolidate and
invest'(8) revenue +18% (excluding M&A benefit) and strong performances in
Italy, India, Turkey, Georgia and Brazil
− Australia performance reflected expected market declines however, player
trends remain encouraging with a third consecutive quarter of AMP growth
− Group Ex-US Adjusted EBITDA +6% at $492m from strong revenue growth above
(constant currency +8%)
● Earnings per share increased $5.59 to $0.45 primarily due to a tax credit on
historic US tax losses and the prior year impairment charge. Adjusted EPS,
which no longer includes the impact of fair value adjustments related to the
Fox Option(9), as well as other fair value measurements included within other
expense, increased 67% to $2.94 also primarily due to the US tax credit
● Net cash provided by operating activities grew 67% year-over-year to $652m,
free cash flow +175% to $473m reflecting significant expansion of the business
Full year 2025 guidance(10,11) highlights (see further detail included on page
9):
2025 has started well. In the US, handle growth stepped up from Q4 levels,
with overall underlying trends in line with our expectations. Sports results
have been broadly neutral year-to-date with a positive outcome on Super Bowl
LIX offset by customer friendly sports results in January. Performance outside
the US reflects the strong Q4 customer base carried into Q1.
Full year guidance introduced below represents year-over-year growth at the
midpoint of 13% revenue and 34% Adjusted EBITDA and includes the following
expectations:
US: existing state growth is expected to be in-line with Investor Day
commentary. This growth is from a larger underlying business in 2024 than
originally outlined at our Investor Day, driven by greater than anticipated
growth subsequent to that event:
● Existing state revenue and Adjusted EBITDA expected mid-points of $7.72bn and
$1.4bn, representing year-over-year growth of 33% and 176% respectively (22.5%
revenue growth and 5.4 percentage points of Adjusted EBITDA margin expansion
on a normalized basis(12))
● New state and territory launches are expected to result in negative revenue of
$40m and an Adjusted EBITDA cost of $90m, based on a Q4 launch for Missouri
and an early 2026 launch now expected for Alberta, Canada
Group ex-US:
● Revenue and Adjusted EBITDA expected mid-points of $8.25bn and $1.85bn which
are in line with 2024 and represent growth of 6% and 10% respectively, after
adjusting for foreign currency headwinds at current spot rates(11) and the
gross sports results benefit in 2024. Guidance excludes the NSX and Snai
acquisitions which are on track for completion in Q2 2025
Peter Jackson, CEO, commented:
I am proud of the progress we made during 2024 as we delivered against our
strategic priorities and enhanced our leadership positions.
FanDuel remains America's number one sportsbook with its leading product
maintaining a clear structural revenue margin advantage over competitors. At
the same time, excellent execution secured a new number one spot for FanDuel
Casino in iGaming.
Outside of the US, our commitment to first-to-market product innovation led to
market share gains in key markets including the UK and Italy, while in
Australia, we saw encouraging trends in our player base.
A key driver of our success has been the Flutter Edge, our unique competitive
advantage, which delivered innovative, market-leading product propositions to
35m customers worldwide in 2024. We did this sustainably, with players using a
Play Well tool increasing since 2023. The launch of the Responsible Online
Gaming Association in the US was another big milestone, advancing industry
standards for both customers and operators.
Thanks to our scale and cash generation, we are an "And" business, with
powerful optionality when deploying capital. This is clearly demonstrated by
our commitment to long-term shareholder returns through our share repurchase
program, and evident in our expansion into fast-growing markets with the
announcement of our acquisitions of NSX in Brazil and Snai in Italy.
We have had a great start to 2025, including record levels of customer
engagement for the Super Bowl where FanDuel had 3m active customers placing
17.7m bets with $470m wagered on the day. I am excited to build on this strong
momentum as we seize the growth opportunities outlined at our Investor Day
last September.
Q4 24 Operating Review
US:
FanDuel was the number one sports betting and iGaming operator during the
quarter with GGR market shares of 43% and 26%, respectively.
Our market-leading product proposition delivered strong customer engagement
with another quarter of increased player frequency. AMPs were 15% higher
year-over-year. New customer activations were lower on a year-over-year basis
with the prior comparable period benefitting from the launch in Kentucky in
Q3. However, customer economics in-market exceeded our expectations and
remained compelling for both sportsbook and iGaming. We continued to invest,
with payback periods of less than 18 months and remaining well under our
24-month threshold as we build a bigger business for the future.
Pre-2022 state(7) growth remains strong with online revenue +9%, despite the
significant adverse NFL sports results impact. As expected, handle growth
moderated from previous quarters to 12%. This reflected a combination of
factors including an additional round of NFL games in the prior comparable
quarter and continued migration of customer spend to higher-revenue margin,
but lower-handle Same Game Parlay products.
Product leadership is core to FanDuel's success. In sportsbook, we leveraged
our leading proprietary pricing and risk management capabilities to deliver a
100 basis point increase in our structural gross revenue margin to 14.5%,
underpinned by a 500 basis point increase in NFL parlay penetration. This
expansion was driven by continuous innovation and improvement of our already
market-leading proposition. We added new live betting features as we executed
our strategy to deliver a more immersive live experience. We also expanded our
market offering and added more customizable generosity options. Our
revolutionary Your Way product which gives customers greater ability to
customize their parlay choices, was rolled out to all states for NFL during
the quarter. While it is still early days in the evolution of the product, we
have been pleased with player engagement.
iGaming AMPs grew 37%, including a 59% increase in direct casino AMPs, driven
by delivery of new features and content. Launches included new exclusive slots
titles such as Samurai 888 Kenji, alongside sports-themed slots content such
as NBA Super Slam to help drive sportsbook cross-sell. We also improved our
iGaming reward proposition with the introduction of a new jackpot
functionality on FanDuel's daily prize mechanic, FanDuel Reward Machine, as
well as trialing our new FanDuel Rewards Club loyalty program.
We exited the year with a strong leadership position, underpinned by
unparalleled scale and product innovation, which positions us exceptionally
well for 2025.
Group Ex-US:
Group ex-US delivered a strong quarter aided by the benefits of our
diversified and scaled portfolio. Excellent momentum in key markets including
UKI, Italy and India more than offset the impact of the known softer racing
market in Australia.
The UKI division has taken four percentage points of market share over the
last two years by delivering a compelling product proposition for players. In
sportsbook, Paddy Power expanded the range of markets on its SuperSub product,
leveraging our leading pricing capabilities. This drove a 5 percentage point
increase in Same Game Parlay penetration as a proportion of total soccer
handle in Q4 compared to the prior year, and helped increase our structural
gross revenue margin. This was complemented by Paddy Power's very successful
sponsorship of the World Darts Championship during the busy Christmas sporting
calendar, which included the Bigger 180 campaign which raised over $1.25m for
Prostate Cancer UK. In iGaming, compelling promotions combined with our
leading free-to-play content, such as the Sky Vegas Guaranteed Prize Machine,
drove iGaming AMPs 13% higher to a record 2.4 million in Q4.
In International, Sisal's market share was up 230bps year-over-year to 15.0%
(Flutter Italy market share 21.4%)(13), leveraging the combination of Sisal's
local capabilities and the Flutter Edge. Sisal's compelling omnichannel
offering helped drive very strong online player growth of 33%. Multi-channel
players generate over 1.5 times more online revenue than online-only players
and we look forward to accessing a broader retail player base with the
expected addition of Snai in 2025. Sisal's poker product offering was enhanced
through access to the PokerStars poker liquidity pool, further demonstrating
the benefits of the Flutter Edge. In India, Junglee lapped the effect of the
tax changes introduced in October 2023. Junglee has delivered strong player
growth throughout this period with 2024 AMPs 72% higher on a
year-over-two-year basis.
In Australia we delivered another quarter of AMP growth, up 7% to 1.3m
following similarly positive trends in prior quarters. While the racing market
declined in line with expectations, we saw strong engagement on sports
including NRL, NBA and NFL, with our leading product offering also delivering
sustained improvements to structural gross revenue margin.
Q4 2024 financial highlights: Group
In $ millions except percentages Three months ended December 31
Revenue Adju
sted
EBIT
DA(2
,3)
2024 2023 YOY YOY CC 2024 2023 YOY YOY CC
US 1,611 1,408 14% 14% 163 168 (3)% (2)%
UKI 963 803 20% 17% 319 272 17% 14%
International 872 727 20% 23% 172 149 15% 26%
Australia 346 375 (8)% (8)% 66 101 (35)% (34)%
Unallocated corporate overhead(14) (65) (58) 12% 10%
Group Ex-US 2,181 1,905 14% 14% 492 464 6% 8%
Group 3,792 3,313 14% 14% 655 632 4% 5%
The Group delivered a strong Q4 with AMP(1) and revenue growth of 7% and 14%
respectively, despite the impact of significant customer friendly sports
results in the US. The addition of MaxBet added two percentage points to Group
revenue growth.
The Group reported net income of $156m compared to a net loss of $902m in Q4
2023. Q4 2024 net income is after non-cash impacts of (i) a loss in the fair
value of the Fox Option liability of $212m (Q4 2023 $66m loss) and (ii) a
charge relating to the amortization of acquired intangibles of $134m (Q4 2023:
$205m). The net loss incurred during Q4 2023 included an impairment charge
relating to the PokerStars brand of $725m(5).
Unallocated corporate overhead(14) represents typical corporate costs in
addition to Flutter Edge investment costs to both drive product innovation and
optimize the efficiency of the services we provide across the Group. The 12%
cost increase in Q4 was driven by both Flutter Edge investment to enhance our
pricing capabilities in global sports, such as tennis, and office relocation
costs.
Adjusted EBITDA(2,3) of $655m grew 4% reflecting strong underlying US, UKI and
International revenue growth, although this was partly offset by the impact of
adverse sports results in the US. Year-over-year Adjusted EBITDA growth also
included the impact of increased taxes in the US (Illinois) and Australia
(Victoria) from July 1, 2024, and anticipated softer racing market trends in
Australia.
Adjusted EBITDA margin for both US and Group Ex-US reduced by 180bps primarily
as a result of the factors above. (Group Ex-US constant currency Adjusted
EBITDA margin -140bps).
Earnings per share improved by $5.59 to $0.45 due to a tax credit on historic
US tax losses and the prior year impairment charge. Adjusted EPS(2) now
adjusts for the impact of fair value adjustments related to the Fox Option(9)
as well as other fair value measurements included within other expense, net,
and has been restated for prior periods to reflect this change. Adjusted EPS
increased 67% to $2.94 mainly due to the tax credit.
The Group's net cash provided by operating activities in Q4 2024 increased by
67% to $652m from $391m while Free Cash Flow(2) was +175% higher, reflecting
the significant expansion in our player base and step up in Adjusted EBITDA
year-over-year.
Q4 2024 financial highlights: Segments
US Q4 revenue grew 14% driven by AMP(1) growth of 15% with sportsbook revenue
+8% and iGaming revenue +43%. This included continued online revenue growth in
pre-2022 states of 9% (sportsbook -7% and iGaming +40%)(4).
Sportsbook revenue growth of 8% reflects the impact of adverse sports results,
with a 12% increase in handle partly offset by a 30 bps reduction in net
revenue margin to 6.7%. As anticipated, handle growth moderated sequentially
from Q2 and Q3 levels due to the factors set out in the Operating Review
above, combined with the timing of state launches in the current and prior
year.
Net revenue margin included: (i) a structural revenue margin increase of 100
bps year-over-year to 14.5%, broadly in line with expectations, delivered
through our market-leading product proposition and pricing (ii) an unfavorable
sports results impact of 150 bps year-over-year (Q4 2024: 390bps unfavorable,
Q4 2023: 240bps unfavorable) or $643m in-quarter GGR/$550m NGR before the
estimated benefit of recycling, and (iii) promotional spend -20 bps
year-over-year to 4.0%.
iGaming revenue grew 43% driven by AMPs +37% and included continued strong
growth on slots and live casino in particular.
Adjusted EBITDA(2) was $163m (Q4 2023 $168m) with an Adjusted EBITDA margin of
10.1%. Cost of sales as a percentage of revenue of 58.6% was 310 bps higher
year-over-year primarily driven by the impact of increased taxes in Illinois
following the change from July 1, 2024 and the impact of the adverse sports
results on revenue.
Sales and marketing expenses continued to deliver operating leverage and
reduced by 300 bps as a percentage of revenue to 20.2%. Technology, research
and development costs, and general and administrative costs were broadly
in-line with Q3 2024 at $69m and $108m respectively. Year-over-year growth was
driven by investment to scale our product and technology capabilities and also
reflects phasing of costs in the prior year.
UKI had another strong quarter with revenue growth of 20% (+17% on a constant
currency basis(15)) from an excellent performance in both sportsbook (+31%)
and iGaming (+16%).
Sportsbook net revenue margin increased 440bps to 16.1% due to both favorable
sports results (Q4 2024: 300bps favorable, Q4 2023: 90bps unfavorable),
primarily in the English Premier League, and a 110bps structural revenue
margin improvement driven by the product innovation as described in the
Operating Review above. Sportsbook handle declined 4% reflecting both the
increased mix of higher revenue margin, lower handle Same Game Parlay products
and the recycling impact of the favorable results.
iGaming revenue growth of 16% was driven by the strong product proposition
across all four of our UKI brands with iGaming AMPs +13% in Q4.
Adjusted EBITDA increased 17% (+14% on a constant currency basis), broadly in
line with revenue growth reflecting continued investment to grow our business,
along with the prior year phasing of general and administration expenses.
International revenue increased 20% (+23% on a constant currency basis) driven
by strong momentum in Sisal (+22%, +28% on a constant currency basis), the
return of Junglee to growth (+88%) as it lapped the tax changes introduced in
October 2023, and favorable sports results. MaxBet (acquired in January 2024)
added $58m in revenue in the quarter. AMP growth moderated to 4% due to the
high levels of player engagement during the Cricket World Cup in Q4 2023.
Sportsbook revenue was 46% higher driven by a 20% growth in handle, aided by
the MaxBet acquisition, and a 240bps increase in net revenue margin. The
margin movement reflected the swing to favorable sports results in Q4 from the
very unfavorable results, most notably in Italy, in the comparable prior year
quarter (Q4 2024: 70bps favorable, Q4 2023: 260bps unfavorable). iGaming
revenue grew 14% (+18% on a constant currency basis) with strong growth in
Italy and India along with the addition of MaxBet which added 7 percentage
points to growth.
Consolidate and Invest(8) markets accounted for 84% of International revenue
in Q4 and grew 28% (+32% on a constant currency basis) or 18% (+22% on a
constant currency basis) excluding the benefit of MaxBet. This reflected
excellent constant currency revenue growth in Italy (+16%, Sisal Italy online
revenue +41%), India (+91%), Turkey (+62%), Georgia (+31%) and Brazil
(+19%)(15).
Adjusted EBITDA increased 15% or (+26% on a constant currency basis). Adjusted
EBITDA margin was 80bps lower at 19.7% due to legal costs in Q4 and the
phasing of sales and marketing expenses in the prior year.
Australia AMPs grew 7% year-over-year while sportsbook revenue was 8% lower.
Revenue performance reflected a handle decline of 5% in line with anticipated
market trends, coupled with an adverse 60 basis point year-over-year swing in
sports results (Q4 2024 40 basis points unfavorable, Q4 2023 20 basis points
favorable). The adverse impact from sports results was partially offset by
continued expansion in our structural revenue margin by 30bps to 17.9% driven
by our market-leading pricing and risk management capabilities. Adjusted
EBITDA was 35% lower (34% on a constant currency basis) driven by the
previously communicated impact from the increase in taxes in Victoria and
sports results noted above.
Capital structure
Total debt reduced by $320m to $6,736m at December 31, 2024 from $7,056m at
December 31, 2023. The Group is now within its medium-term leverage(2) target
of 2.0-2.5x following the $482m expansion in Adjusted EBITDA during 2024,
which also drove net debt $635m lower at December 31, 2024 to $5,160m
(December 31, 2023 $5,795m). The Group's leverage ratio was 2.2x, based on the
last 12 months Adjusted EBITDA, a reduction of 0.9x from 3.1x at December 31,
2023.
The share repurchase program commenced in November 2024 with up to $5bn
expected to be returned to shareholders over the coming years. The first
tranche of the program commenced in November 2024 with 444,746 shares
repurchased in 2024 for $121m. In 2025, we expect to return approximately $1bn
to shareholders via the program.
Change to reporting segments
Effective January 1, 2025 Flutter will report two segments:
● US, comprising the FanDuel brand and unchanged from the US segment as reported
today
● Flutter International, comprising all other Flutter brands. This will align
with current UKI, Australia and International segments combined. Flutter
International will exclude Unallocated corporate overhead
An updated set of financial KPIs will be made available on the Flutter website
in advance of our Q1 earnings update.
Full year 2025 guidance
Actual FY 2024 2025 guidance(10,11)
Low High
Group revenue $14.05bn $15.48bn $16.38bn
Group Adjusted EBITDA $2.36bn $2.94bn $3.38bn
US existing state revenue $5.8bn $7.47bn $7.97bn
US existing state Adjusted EBITDA $507m $1.28bn $1.52bn
US new states revenue cost ($40m)
US new states Adjusted EBITDA ($90m)
Group Ex-US revenue $8.25bn $8.05bn $8.45bn
Group Ex-US Adjusted EBITDA $1.85bn $1.75bn $1.95bn
Interest expense, net $419m $360m $380m
Depreciation and amortization excl. acquired intangibles $516m Approximately $580m
Capital expenditure(16) $661m Approximately $710m
Share repurchases $121m Up to $1bn
Guidance above is based on existing segment disclosure
2025 has started well. In the US, handle accelerated from Q4 levels, with
overall underlying trends in line with our expectations. Sports results have
been broadly neutral year-to-date with a positive outcome on Super Bowl LIX
offset by customer friendly sports results in January. Outside of the US
performance reflects the strong Q4 customer base carried into Q1.
Full year Group guidance introduced below represents year-over-year growth of
13% revenue and 34% Adjusted EBITDA at the midpoint and reflects the following
expectations:
US:
Existing states:
● Revenue and Adjusted EBITDA mid-points of $7.72bn and $1.4bn, representing
year-over-year growth of 33% and 176% respectively
● This represents revenue growth and Adjusted EBITDA margin expansion of 22.5%
and 5.4 percentage points on a normalized basis(12), in line with our Investor
Day commentary. This growth is from a larger underlying business in 2024
driven by underlying growth following the event
● From a phasing perspective we expect 24-25% of 2025 revenue and 20% of 2025
Adjusted EBITDA to arise in Q1 with 60% of 2025 Adjusted EBITDA in H2 and Q4
remaining our largest quarter
New states / territories:
● New launches are expected to result in negative revenue of $40m and an
Adjusted EBITDA cost of $90m, based on a Q4 launch for Missouri and an early
2026 launch now expected for Alberta, Canada
Group ex-US:
● Revenue and Adjusted EBITDA mid-points of $8.25bn and $1.85bn are in line with
2024 and represent growth of 6% and 10% respectively after adjusting for:
− Foreign currency headwind of $220m/3% for revenue and $50m/3% for Adjusted
EBITDA
− Favorable sports results in 2024 (Gross revenue impact $229m)
● This excludes the impact from the acquisition of NSX and Snai, which are on
track for completion in Q2 2025
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(11) 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.
This announcement contains inside information as defined under assimilated
Regulation (EU) No. 596/2014, which is part of the laws of the United Kingdom
by virtue of the European Union (Withdrawal) Act 2018 (as amended). The person
responsible for arranging release of this information on behalf of Flutter is
Edward Traynor, Company Secretary of Flutter.
Conference call:
Flutter management will host a conference call today at 4:30 p.m. ET (9:30
p.m. GMT) 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/154170669) 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, 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 as filed with 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, tombola, Betfair, MaxBet, Junglee Games and
Adjarabet. We are the industry leader with $14,048m of revenue globally for
fiscal 2024, up 9% YoY, and $3,792m of revenue globally for the quarter ended
December 31, 2024.
Contacts:
Investor Relations: Media Relations:
Paul Tymms, Investor Relations Kate Delahunty, Corporate Communications
Ciara O'Mullane, Investor Relations Rob Allen, Corporate Communications
Liam Kealy, Investor Relations Lindsay Dunford, Corporate Communications
Email: investor.relations@flutter.com Email: corporatecomms@flutter.com
Notes
1. 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 Securities and Exchange
Commission (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.
2. Adjusted EBITDA, Adjusted EBITDA Margin, Group Ex-US Adjusted EBITDA, Free
Cash Flow, Net Debt, Leverage Ratio, Constant Currency, Adjusted Net Income
Attributable to Flutter Shareholders and Adjusted Earnings/(Loss) Per Share
are non-GAAP financial measures. Beginning in Q4 2024 Flutter now adjusts the
fair value impact of the Fox Option liability(9) and other fair value
adjustments in Adjusted Net Income Attributable to Flutter Shareholders and
Adjusted Earnings/(Loss) Per Share. 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. Beginning January 1, 2024, the Group revised its definition of Adjusted
EBITDA, which is the segment measure used to evaluate performance and allocate
resources. The definition of Adjusted EBITDA now excludes share-based
compensation as management believes inclusion of share-based compensation can
obscure underlying business trends as share-based compensation could vary
widely among companies due to different plans in place resulting in companies
using share-based compensation awards differently, both in type and quantity
of awards granted.
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 December 31, 2024 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 December 31, 2024 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 December 31,
2024 was 27%.
5. In Q4 2023 the Group reported a $725m impairment of trademarks associated with
the PokerStars business reflecting Flutter's "local hero" strategy and
PokerStars presence in lower growth markets.
6. Payback is calculated as the projected average length of time it takes players
to generate sufficient adjusted gross profit to repay the original average
cost of acquiring those players. Customer acquisition costs include the
marketing and associated promotional spend incurred to acquire a customer. The
projected adjusted gross profit is based on predictive models considering
inputs such as staking behavior, interaction with promotional offers and gross
revenue margin. Projected adjusted gross profit includes associated variable
costs of revenue as well as retention generosity costs.
7. Pre-2022 states: New Jersey, Pennsylvania, West Virginia, Indiana, Colorado,
Illinois, Iowa, Michigan, Tennessee, Virginia, Arizona and Connecticut.
8. Consolidate and Invest markets within our International segment are Italy,
Spain, Georgia, Armenia, Serbia, Brazil, India, Turkey, Morocco, Bosnia &
Herzegovina and the US.
9. Fox has an option to acquire an 18.6% equity interest in FanDuel (the Fox
Option). Gains or losses in the fair value of the Fox Option primarily due to
changes in the fair value of FanDuel during the reporting period are recorded
in Other income (expense), net. The Fox Option impact per share is calculated
as the Fox Option impact during the reporting period divided by the diluted
weighted average number of shares for the equivalent period (pre-tax). See
Part II, "Item 8. Financial Statements and Supplementary Data-Fair Value
Measurements" of Flutter's Annual Report on Form 10-K for the year ended
December 31, 2024 filed with the Securities and Exchange Commission (the
"SEC") on March 4, 2025 for additional information regarding The Fox Option.
10. 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.
11. Foreign exchange rates assumed in forecasts for 2025 guidance are USD:GBP of
0.789, USD:EUR of 0.953 and USD:AUD of 1.584.
12. Normalized 2024 refers to revenue and Adjusted EBITDA before accounting for
the transitory impact of sports results. The impact of sports results in 2024
is comprised of a neutral sports results impact in Q1-Q3 and a revenue and
Adjusted EBITDA impact of $550m and $360m respectively in Q4 as per our
announcement dated January 7, 2025. The business saw an estimated benefit from
recycling in Q4 of approximately $50m revenue which flowed through to $25m
Adjusted EBITDA. After this recycling benefit and specific cost mitigations in
Q4 relating to employee pay accruals and sales and marketing expenses, the
impact of sports results for 2024 was estimated to be revenue of $500m and
Adjusted EBITDA of $290m.
13. Italian market position and share based on regulator GGR data from Agenzia
delle dogane e dei Monopoli.
14. Unallocated corporate overhead includes shared technology, research and
development, sales and marketing, and general and administrative expenses that
are not allocated to specific segments.
15. Constant currency growth rates are calculated by retranslating the non-US
dollar denominated component of Q4 2023 at Q4 2024 exchange rates. See
reconciliation on page 24.
16. Capital expenditure is defined 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, Group
Ex-US Adjusted EBITDA, Group Ex-US 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.
Group Ex-US Adjusted EBITDA is defined as Group Adjusted EBITDA excluding our
US Segment Adjusted EBITDA.
Group Ex-US Adjusted EBITDA Margin is Group Ex-US Adjusted EBITDA as a
percentage of Group revenue excluding our US Segment revenue.
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. Prior to Q4 2024 Adjusted Net Income Attributable to Flutter
Shareholders included the impact of 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.
From Q4 2024, Flutter amended the definition of this measure to exclude for
all fair value changes namely, i) Fair value (loss) gain on derivative
instruments, ii) Fair value gain on contingent consideration, iii) Fair value
(loss) gain on Fox Option liability, and iv) Fair value loss on investment.
Management believes the change better reflects the operating performance of
our business as:
• Fair value measurements are not indicative of our core operating results;
• Management does not have the ability to control or influence changes in fair
value; and
• The change will align the definition of Adjusted Earnings (loss) per share
with the definition of adjusted EPS as defined in the performance share units
award granted to the Principal Executive Officers and Named Executive
Officers.
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, Group Ex-US Adjusted EBITDA, 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.
Consolidated Balance Sheets
($ in millions except share and per share amounts) As of As of
December 31, December 31,
2024 2023
Current assets:
Cash and cash equivalents 1,531 1,497
Cash and cash equivalents - restricted 48 22
Player deposits - cash and cash equivalents 1,930 1,752
Player deposits - investments 130 172
Accounts receivable, net 98 90
Prepaid expenses and other current assets 607 443
Total current assets 4,344 3,976
Investments 6 9
Property and equipment, net 493 471
Operating lease right-of-use assets 507 429
Intangible assets, net 5,364 5,881
Goodwill 13,352 13,745
Deferred tax assets 267 24
Other non-current assets 175 100
Total assets 24,508 24,635
Liabilities, redeemable non-controlling interests and shareholders' equity
Current liabilities:
Accounts payable 266 240
Player deposit liability 1,940 1,786
Operating lease liabilities 119 123
Long-term debt due within one year 53 51
Other current liabilities 2,212 2,326
Total current liabilities: 4,590 4,526
Operating lease liabilities - non-current 428 354
Long-term debt 6,683 7,005
Deferred tax liabilities 605 802
Other non-current liabilities 935 580
Total liabilities 13,241 13,267
Commitments and contingencies
Redeemable non-controlling interests 1,808 1,152
Shareholders' equity
Ordinary share (Authorized 300,000,000 shares of €0.09 ($0.10) par value 36 36
each; issued 2024: 177,895,367 shares; 2023: 177,008,649 shares)
Shares held by employee benefit trust, at cost 2024: nil, 2023: nil - -
Additional paid-in capital 1,611 1,385
Accumulated other comprehensive loss (1,927) (1,483)
Retained earnings 9,573 10,106
Total Flutter Shareholders' Equity 9,293 10,044
Non-controlling interests 166 172
Total shareholders' equity 9,459 10,216
Total liabilities, redeemable non-controlling interests and shareholders' 24,508 24,635
equity
Consolidated Statements of Comprehensive Income (Loss)
Three months ended December 31, Fiscal year ended December 31,
($ in millions except share and per share amounts) 2024 2023 2024 2023
Revenue 3,792 3,313 14,048 11,790
Cost of Sales (1,966) (1,784) (7,346) (6,202)
Gross profit 1,826 1,529 6,702 5,588
Technology, research and development expenses (201) (207) (820) (765)
Sales and marketing expenses (830) (1,526) (3,205) (3,776)
General and administrative expenses (516) (415) (1,808) (1,596)
Operating profit / (loss) 279 (619) 869 (549)
Other expense, net (227) (78) (434) (157)
Interest expense, net (94) (119) (419) (385)
Income / (loss) before income taxes (42) (816) 16 (1,091)
Income tax benefit/ (expense) 198 (86) 146 (120)
Net income / (loss) 156 (902) 162 (1,211)
Net gain attributable to non-controlling interests and redeemable 26 19 53 13
non-controlling interests
Adjustment of redeemable non-controlling interest to redemption value 49 (9) 66 (2)
Net income/ (loss) attributable to Flutter shareholders 81 (912) 43 (1,222)
Net income / (loss) per share
Basic 0.45 (5.14) 0.24 (6.89)
Diluted 0.45 (5.14) 0.24 (6.89)
Other comprehensive (loss) / income, after tax:
Effective portion of changes in fair value of cash flow hedges 99 (96) (12) (121)
Fair value of cash flow hedges transferred to the income statement (85) 69 32 93
Changes in excluded components of fair value hedge - - (1) -
Foreign exchange gain on net investment hedges 17 20 73 30
Foreign exchange (loss) / gain on translation of the net assets of foreign (879) 440 (554) 357
currency denominated entities
Fair value movements on available for sale debt instruments - 5 - 5
Other comprehensive (loss) / income (848) 438 (462) 364
Other comprehensive (loss) / income attributable to Flutter shareholders (852) 415 (444) 299
Other comprehensive income / (loss) attributable to non-controlling interest 4 23 (18) 65
and redeemable non-controlling interest
Total comprehensive loss (692) (464) (300) (847)
Consolidated Statements of Cash Flows
Three months ended December 31, Fiscal year ended December 31,
($ in millions) 2024 2023 2024 2023
Net income / (loss) 156 (902) 162 (1,211)
Adjustments to reconcile net income / (loss) to net cash from operating
activities:
Depreciation and amortization 270 368 1,097 1,285
Impairment Loss - 725 - 725
Change in fair value of derivatives (2) 24 2 (7)
Non-cash interest (income) / expense, net (9) 27 19 (12)
Non-cash operating lease expense 46 24 142 117
Unrealized foreign currency exchange (gain) / loss, net 9 (234) (15) (225)
Loss on disposal 1 4 7 5
Share-based compensation - equity classified 47 45 196 180
Share-based compensation - liability classified 2 10 6 10
Other expense, net 212 64 428 163
Deferred taxes (231) 49 (348) (132)
Loss on extinguishment of long-term debt 2 5 7 6
Change in contingent consideration - (2) (3) (2)
Change in operating assets and liabilities:
Player deposits 17 16 33 (1)
Accounts receivable (17) (10) (11) 23
Prepaid expenses and other current assets (44) (98) (73) 146
Accounts payable 11 (11) (7) (4)
Other current liabilities 94 304 (104) 366
Player deposit liability 131 7 212 (382)
Operating leases liabilities (43) (24) (148) (113)
Net cash provided by operating activities 652 391 1,602 937
Cash Flows From Investing Activities
Purchases of property and equipment (57) (89) (144) (159)
Purchases of intangible assets 13 (62) (136) (175)
Capitalized software (135) (68) (381) (268)
Acquisitions, net of cash acquired - - (160) -
Cash settlement of derivatives designated in net investment hedge 15 - 10 -
Net cash used in investing activities (164) (219) (811) (602)
Cash Flows From Financing Activities
Proceeds from issue of ordinary share upon exercise of options 9 6 30 13
Proceeds from issuance of long-term debt (net of transaction costs) - 1,314 1,684 2,018
Repayment of long-term debt (9) (1,024) (1,948) (1,837)
Acquisition of non-controlling interests - - - (95)
Distributions to non-controlling interests (6) - (16) -
Repurchase of ordinary shares and taxes withheld and paid on employee share (219) - (219) (212)
awards
Net cash (used in) / provided by financing activities (225) 296 (469) (113)
Net Increase In Cash, Cash Equivalents And Restricted Cash 263 468 322 222
Cash, Cash Equivalents And Restricted Cash - Beginning of period 3,410 2,701 3,271 2,990
Effect of foreign exchange on cash, cash equivalents and restricted cash (164) 102 (84) 59
Cash, Cash Equivalents And Restricted Cash - End of period 3,509 3,271 3,509 3,271
Cash, Cash Equivalents And Restricted Cash Comprise Of:
Cash and cash equivalents 1,531 1,497 1,531 1,497
Cash and cash equivalents-restricted 48 22 48 22
Player deposits - cash and cash equivalents 1,930 1,752 1,930 1,752
Cash, Cash Equivalents And Restricted Cash - End of period 3,509 3,271 3,509 3,271
Supplemental Disclosures Of Cash Flow Information:
Interest paid 119 49 462 408
Income tax paid (net of refunds) 77 46 255 255
Operating cash flows from operating leases 50 30 174 133
Non-Cash Investing And Financing Activities:
Purchase of property and equipment with accrued expense 15 - 15 -
Right-of-use assets obtained in exchange of operating lease liabilities 15 30 155 73
Adjustments to lease balances as a result of remeasurement 19 12 47 22
Business acquisitions (including deferred consideration) - - 2 -
Proceeds from issuance as part of debt restructuring - 5,267 - 5,267
Principal amount of extinguishment as part of debt restructuring - 4,622 - 4,622
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 December 31 Fiscal year ended December 31
($ in millions) 2024 2023 2024 2023
Net income / (loss) 156 (902) 162 (1,211)
Add back:
Income taxes (198) 86 (146) 120
Other expense, net 227 78 434 157
Interest expense, net 94 119 419 385
Depreciation and amortization 270 368 1,097 1,285
Impairment - 725 - 725
Share-based compensation expense 49 55 202 190
Transaction fees and associated costs (1) 9 46 54 92
Restructuring and integration costs (2) 48 57 135 132
Adjusted EBITDA 655 632 2,357 1,875
Less: US Adjusted EBITDA (163) (168) (507) (232)
Group Ex-US Adjusted EBITDA 492 464 1,850 1,643
Revenue 3,792 3,313 14,048 11,790
Adjusted EBITDA Margin 17.3% 19.1% 16.8% 15.9%
1. Primarily associated with 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, transaction fees related to
Snaitech and NSX for the year ended December 31, 2024, and the listing of
Flutter's ordinary shares in the US for the year ended December 31, 2023.
2. Costs 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 also
included severance expenses, advisory fees and temporary staffing cost. The
programs are expected to run until 2027.
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 December 31 Fiscal year ended December 31
($ in millions) 2024 2023 2024 2023
Net cash provided by operating activities 652 391 1,602 937
Less cash impact of:
Purchases of property and equipment (57) (89) (144) (159)
Purchases of intangible assets 13 (62) (136) (175)
Capitalized software (135) (68) (381) (268)
Free Cash Flow 473 172 941 335
Net debt reconciliation
See below a reconciliation of net debt to long-term debt, the most comparable
GAAP measure.
($ in millions) As at December 31, 2024 As at December 31, 2023
Long-term debt 6,683 7,005
Long-term debt due within one year 53 51
Total Debt 6,736 7,056
Add:
Transactions costs, premiums or discount included in the carrying value of 52 54
debt
Less:
Unrealized foreign exchange on translation of foreign currency debt (1) (97) 182
Cash and cash equivalents (1,531) (1,497)
Net Debt 5,160 5,795
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.
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 December 31 Fiscal year ended December 31
($ in millions) 2024 2023 2024 2023
Net income / (loss) 156 (902) 162 (1,211)
Less:
Transaction fees and associated costs 9 46 54 92
Restructuring and integration costs 48 57 135 132
Impairment - 725 - 725
Amortization of acquired intangibles 134 205 581 791
Accelerated amortization - 30 - 30
Share-based compensation 49 55 202 190
Loss on settlement of long-term debt 2 5 7 6
Financing related fees not eligible for capitalization 6 29 8 29
Fair value (gain) / loss on derivative instruments (2) 24 2 (7)
Fair value gain on contingent consideration - - (3) -
Fair value loss on Fox Option Liability 212 66 426 165
Fair value loss on investment - 2 2 2
Tax impact of above adjustments(2) (9) (22) (148) (150)
Adjusted net income 605 320 1,428 794
Less:
Net income attributable to non-controlling interests and redeemable 26 19 53 13
non-controlling interests(3)
Adjustment of redeemable non-controlling interest(4) 49 (9) 66 (2)
Adjusted net income attributable to Flutter shareholders 530 310 1,309 783
Weighted average number of shares 180 177 180 177
1. Flutter now adjusts for the fair value impact of the Fox Option liability and
other fair value adjustments in Adjusted Net Income Attributable to Flutter
Shareholders and Adjusted Earnings Per Share
2. Tax rates used in calculated adjusted net profit attributable to Flutter
shareholders is the statutory tax rate applicable to the geographies in which
the adjustments were incurred.
3. Represents net loss attributed to the non-controlling interest in Sisal and
the redeemable non-controlling interest in FanDuel and Junglee.
4. Represents the adjustment made to the carrying value of the redeemable
non-controlling interests in Junglee 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 December 31 Fiscal year ended December 31
$ 2024 2023 2024 2023
Earnings (loss) per share to Flutter shareholders 0.45 (5.14) 0.24 (6.89)
Add/ (Less):
Transaction fees and associated costs 0.05 0.26 0.30 0.52
Restructuring and integration costs 0.27 0.32 0.75 0.75
Impairment - 4.10 - 4.10
Amortization of acquired intangibles 0.74 1.16 3.23 4.47
Accelerated amortization - 0.17 - 0.17
Share-based compensation 0.27 0.31 1.12 1.07
Loss on settlement of long-term debt 0.01 0.03 0.04 0.03
Financing related fees not eligible for capitalization 0.03 0.16 0.04 0.16
Fair value (gain) / loss on derivative instruments (0.01) 0.14 0.01 (0.04)
Fair value gain on contingent consideration - - (0.02) -
Fair value loss on Fox Option Liability 1.18 0.37 2.37 0.93
Fair value loss on investment - 0.01 0.01 0.01
Tax impact of above adjustments (0.05) (0.12) (0.82) (0.85)
Adjusted earnings per share 2.94 1.76 7.27 4.42
Constant currency ('CC') growth rate reconciliation
See below a reconciliation of segment constant currency growth rates to
nominal currency growth rates, the most comparable GAAP measure.
($ millions except percentages) Three months ended December 31
Unaudited 2024 2023 YOY 2024 2023 YOY
FX impact CC CC
Revenue
US 1,611 1,408 +14% (1) 1,407 +14%
UKI 963 803 +20% 18 821 +17%
International 872 727 +20% (20) 707 +23%
Australia 346 375 (8)% 2 377 (8)%
Group Ex-US 2,181 1,905 +14% - 1,905 +14%
Group 3,792 3,313 +14% (1) 3,312 +14%
Adjusted EBITDA
US 163 168 (3)% (1) 167 (2)%
UKI 319 272 +17% 7 279 +14%
International 172 149 +15% (13) 136 +26%
Australia 66 101 (35)% (1) 100 (34)%
Unallocated corporate overhead (65) (58) +12% (1) (59) +10%
Group Ex-US 492 464 +6% (8) 456 +8%
Group 655 632 +4% (9) 623 +5%
See below a reconciliation of other reported constant currency revenue growth
rates to nominal currency growth rates.
Three months ended December 31, 2024
Unaudited YoY YoY YoY
CC FX impact Nom
International iGaming +18% (4)% +14%
Consolidate and Invest markets(8) +32% (4)% +28%
Consolidate and Invest markets excluding MaxBet +22% (4)% +18%
Italy +16% (1)% +15%
India +91% (3)% +88%
Turkey +62% (35)% +27%
Georgia +31% (3)% +28%
Brazil +19% (17)% +2%
Sisal +28% (6)% +22%
Sisal Italy online +41% (2)% +39%
Segment KPIs
($ millions except percentages) Three months ended December 31, 2024 YOY
Unaudited US UKI Intl Aus US UKI Intl Aus
Average monthly players ('000s) 4,561 4,063 4,706 1,275 +15% +5% +4% +7%
Sportsbook handle 16,379 2,947 1,581 2,857 +12% (4)% +20% (5)%
Sportsbook net revenue margin 6.7% 16.1% 13.5% 12.1% (30)bps +440bps +240bps (30)bps
Sportsbook revenue 1,106 473 213 346 +8% +31% +46% (8)%
iGaming revenue 441 458 626 - +43% +16% +14% -
Other revenue 64 32 33 - (11)% (33)% (3)% -
Total revenue 1,611 963 872 346 +14% +20% +20% (8)%
Adjusted EBITDA 163 319 172 66 (3)% +17% +15% (35)%
Adjusted EBITDA margin 10.1% 33.1% 19.7% 19.1% (180)bps (70)bps (80)bps (760)bps
Additional information: Segment operating expenses
Cost of sales 944 333 391 190 +21% +15% +11% (4)%
Technology, research and development expenses 70 36 48 8 +19% (20)% (6)% +33%
Sales & marketing expenses 326 175 136 60 -% +22% +46% +3%
General and administrative expenses 108 98 125 21 +48% +85% +45% +50%
Reconciliation of supplementary non GAAP information: Adjusted depreciation
and amortization
($ millions) Three months ended December 31, 2024 Three months ended December 31, 2023
unaudited US UKI Intl Aus Corp Total US UKI Intl Aus Corp Total
Depreciation and Amortization 31 78 135 17 9 270 38 103 204 17 6 368
Less: Amortization of acquired intangibles (4) (50) (76) (4) - (134) (5) (79) (116) (6) - (206)
Less: Accelerated amortization - - - - - - - - (30) - - (30)
Adjusted depreciation and amortization(1) 27 28 59 13 9 136 33 24 58 11 6 132
($ millions) Fiscal year ended December 31, 2024 Fiscal year ended December 31, 2023
unaudited US UKI Intl Aus Corp Total US UKI Intl Aus Corp Total
Depreciation and Amortization 120 335 547 65 30 1,097 118 415 676 60 16 1,285
Less: Amortization of acquired intangibles (16) (222) (325) (18) - (581) (20) (310) (438) (23) - (791)
Less: Accelerated amortization - - - - - - - - (30) - - (30)
Adjusted depreciation and amortization(1) 104 113 222 47 30 516 98 105 208 37 16 464
1. Adjusted depreciation and amortization is defined as depreciation and
amortization excluding amortization of acquired intangibles
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