Flutter Entertainment (FLUT) Q3 2024 TU earnings summary

Executive summary

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

• Adjusted EBITDA increased 74% to $450 million, with margin up to 13.9% from 10.1%.

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

• Announced a $5 billion share repurchase program, with the first $350 million tranche starting November 2024.

• Acquisitions of NSX (Brazil) and Snaitech (Italy) to expand international presence.

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, now within the 2–2.5x 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. full-year revenue midpoint guidance reduced by $50 million to $6.15 billion; adjusted EBITDA midpoint at $710 million, range $670–$750 million.

• Ex-U.S. revenue guidance upgraded to $8.2 billion and adjusted EBITDA to $1.82 billion.

• Illinois tax increase expected to impact U.S. Adjusted EBITDA by $40 million in H2 2024.

• 2025 guidance not yet provided, but medium-term targets reaffirmed: 20–25% U.S. revenue growth and 500–600 bps EBITDA margin expansion.