Flutter Entertainment (FLUT) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue rose 27% year-over-year to $3.25 billion, with average monthly players up 16% to 12.9 million, driven by strong U.S. and international growth, including MaxBet.

• Adjusted EBITDA increased 74% to $450 million, with margin expanding to 13.9%.

• Net loss improved to $114 million from $262 million, with net loss margin improving to 3.5% from 10.2%.

• Share repurchase program of up to $5 billion announced, with first $350 million tranche starting November 2024.

• Acquisitions of NSX and Snaitech to expand presence in Brazil and Italy.

Financial highlights

• U.S. revenue grew 51% year-over-year to $1.25 billion, with Adjusted EBITDA swinging to $58 million from a $55 million loss.

• Group ex-U.S. revenue up 15% to $1.998 billion, Adjusted EBITDA up 24% to $392 million.

• Free cash flow dropped to $112 million from $434 million, mainly due to derivative settlements.

• Leverage ratio improved to 2.4x from 3.1x at year-end 2023, within the target range.

• Cash and cash equivalents stood at $1.48 billion as of September 30, 2024.

Outlook and guidance

• FY 2024 Group revenue and Adjusted EBITDA guidance raised by 1% after strong Q3.

• U.S. guidance narrowed, with midpoints for revenue and Adjusted EBITDA lowered 1% and 4% respectively due to unfavorable Q4 sports results.

• Group ex-U.S. guidance raised 3% for both revenue and Adjusted EBITDA.

• Full-year revenue expected to grow 22% and Adjusted EBITDA 35% at midpoints.

• Guidance assumes stable sports results, FX, and regulatory environment.