Flutter Entertainment (FLUT) Investor Day 2024 summary

Strategic Positioning and Growth Outlook

• Operating in a $370 billion global market, with growth driven by regulatory expansion and the shift from retail to online.

• Holds leading positions in key regulated markets (U.S., U.K., Australia, Italy) and is expanding in high-growth markets like India and Brazil.

• Forecasts $21 billion in revenue and $2.5 billion in free cash flow by 2027, with up to $5 billion in shareholder returns over the next 3-4 years.

• The federated operating model and Flutter EDGE platform empower local teams, enabling rapid, market-specific decision-making and leveraging global scale.

• Focuses on sustainable growth through a diversified portfolio of local hero brands and proprietary technology.

Competitive Advantages and Innovation

• The Flutter EDGE platform provides a sustainable advantage by sharing technology, product, and expertise across brands, driving innovation and efficiency.

• Proprietary technology and a decentralized approach allow for agile development and sharing of code, maximizing speed and flexibility.

• In-house pricing and risk management underpin market-leading sportsbook products, enabling competitive odds, innovative bet types, and higher margins.

• Machine learning and AI are increasingly used to personalize promotions and optimize customer engagement and retention.

• Efficiency programs and technology integration (e.g., PokerStars, Snai) expected to deliver over $570 million in annual cost savings by 2027.

U.S. Market Leadership and Financial Performance

• FanDuel has grown to the number one position in both sports betting and iGaming, surpassing previous margin and market share targets.

• U.S. revenue is projected to reach $9.7 billion by 2027, with 25% adjusted EBITDA margins and $2.4 billion in EBITDA.

• The U.S. total addressable market estimate has increased by 50% to $70 billion, driven by higher player values and greater gaming penetration.

• FanDuel maintains a structural margin already at 12%, with further upside expected from parlay growth and product innovation.

• Efficient customer acquisition, product innovation, and superior pricing drive sustainable growth and retention.