Flutter Entertainment (FLUT) H1 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 20% year-over-year to $3.61 billion, with net income up 364% to $297 million and average monthly players increasing 17% to 14.3 million, driven by strong US expansion, robust UKI/International performance, and the addition of MaxBet.

• FanDuel led the US with nearly 40% market share in sports betting and iGaming, supported by product enhancements and disciplined customer acquisition.

• Adjusted EBITDA grew 17% to $738 million, though margin slightly decreased to 20.4% due to higher costs.

• Free cash flow improved to $171 million from a negative $95 million in Q2 2023, supporting ongoing investment and deleveraging.

• Full-year 2024 guidance was raised, reflecting continued momentum and positive outlook across all segments.

Financial highlights

• Q2 2024 revenue: $3.61 billion (+20% YoY); net income: $297 million (+364% YoY); Adjusted EBITDA: $738 million (+17% YoY).

• US revenue grew 39% year-over-year to $1.53 billion, with Adjusted EBITDA up 51% to $260 million; US sportsbook revenue rose 41% and iGaming 47%.

• UK & Ireland revenue increased 18% to $928 million, with Adjusted EBITDA up 18% to $293 million, supported by strong sports and iGaming results.

• International segment revenue rose 11% to $807 million, Adjusted EBITDA up 8% to $156 million, driven by product innovation and market expansion.

• Free cash flow was $171 million, reversing a prior year outflow; leverage ratio improved to 2.6x from 3.1x at year-end 2023.

Outlook and guidance

• FY 2024 Group revenue guidance raised by $350 million and Adjusted EBITDA by $70 million, now expecting 20% and 34% year-over-year growth at midpoints.

• US revenue guidance midpoint increased to $6.2 billion, Adjusted EBITDA to $740 million; Group Ex-US revenue midpoint to $8.0 billion, Adjusted EBITDA to $1.77 billion.

• Guidance incorporates Illinois gaming tax impact and positive sports results, with most US Adjusted EBITDA expected in Q4.

• Management anticipates reducing leverage ratio over time and returning excess capital to shareholders once leverage is optimized.

• Q3 expected to show a small US EBITDA loss, with significant earnings in Q4.