Flutter Entertainment (FLUT) Q4 2021 earnings summary

Executive summary

• Pro forma revenue grew 17% in 2021, led by 23% growth in average monthly players; adjusted EBITDA declined 18% as US investment and UK & Ireland and International headwinds offset Australian growth.

• Strategic priorities were refreshed around core-market leadership, US expansion, international positions and future opportunities; over 91% of Q4 revenue came from regulated markets.

Financial highlights

• Reported revenue rose 37% to £6,036m; pro forma revenue rose 17% at constant currency to £6,036m.

• Pro forma adjusted EBITDA was £1,001m, down 18%; reported EBITDA was £723m, down 6%.

• Statutory loss after tax was £412m versus £35m in 2020; basic EPS was a loss of 236.5p versus earnings of 29.3p.

• Adjusted basic EPS was 252.7p versus 496.6p; adjusted free cash flow was £625m versus £1,151m.

• Average monthly players increased 23% to 7.6m, with pro forma sports revenue up 27% and gaming revenue up 4%.

Outlook and guidance

• Revenue in the first seven weeks to 20 February 2022 was up 2% YoY and in line with expectations; revenue growth was expected to accelerate through 2022, assuming expected sports results.

• US EBITDA profitability remained targeted for 2023, subject to expected state regulation and launch timing; a significant variance, including a large-state launch, could affect timing.

• New US states were expected to reach positive contribution 12–24 months after launch, excluding higher-tax states such as New York.

• The medium-term leverage target remained 1–2x; the Board planned to review dividend policy once leverage returned to that range.