Flutter Reports Strong Q3 Results With Revenue Growth And Updated Guidance

Flutter Entertainment has released its third-quarter 2024 financial results, showcasing significant revenue growth and raising guidance for the fiscal year. It reported a net loss of $114 million, but this was a $148 million year-over-year improvement. That $114 million loss also included $121 million fair value loss on Fox’s option to acquire an 18.6% equity interest in FanDuel.

In an earnings call to discuss the results, Flutter reported that its strategic expansions and new product launches, along with a strong start to the NFL season, drove substantial gains across key markets. The company also announced a share repurchase program of up to $5 billion, set to begin on November 14.

For Q3, Flutter reported total revenue of $3.25 billion, marking a 27% year-over-year increase from $2.56 billion in 2023. Average monthly players increased by 16% to 12.9 million, signaling strong user engagement across all divisions.

In the U.S., I’d actually call out our pricing accuracy as something that’s been incredibly important for us. We’ve got a very strong parlay mix, which ought to actually make positive results better and negative results potentially worse because a lot of parlays can be can drive loss of volatility. But our pricing accuracy is absolutely crucial, and I think that’s what’s really driving the material differential that you’re seeing with our business and others.

–Flutter CEO Peter Jackson

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) reached $450 million, a 74% increase over the previous year. Adjusted EBITDA margins improved to 13.9%, reflecting efficiency and profitability gains.

FanDuel continues to outperform

The U.S. market was a standout performer, driven by FanDuel’s continued success. Revenue in the U.S. grew by 51% to $1.25 billion, as FanDuel leveraged new sportsbook product features introduced ahead of the NFL season to capture a larger market share.

In the U.S., if it was not for the run of customer friendly NFL sports results in Q4 to date, we would have been increasing our guidance for the year also. Notwithstanding the impact of these results, the strong underlying performance in Q3 and [into] Q4 means we are only reducing our U. S. full year revenue midpoint guidance by $50 million to $6.1 billion.

–Flutter CFO Rob Coldrake

The NFL season helped drive FanDuel’s handle up 36% in the quarter overall. The company saw its handle grow by 23% in those states that launched prior to 2022 and 37% in those states launched in 2022 and 2023.

Customer acquisition continued to rise, as well, with an 18-month payback period and 10% year-over-year increase in acquisitions. Live sports betting, bolstered by FanDuel’s proprietary features, attracted significant user activity, with parlay engagement up 7% in the early NFL weeks.

During the conference call, the topic of Missouri’s rollout of sports betting was raised. Missouri is the only new U.S. jurisdiction to have approved betting this year (not many remain), and Flutter is confident that it will launch before the end of 2025.

Following recent reports by Hard Rock that it might consider partnering with major operators for sports betting, Flutter CEO Peter Jackson was prompted to comment. Similarly to what other operators have said when asked, the response was that it’s too early to discuss what might emerge in the future.

International operations provide strong results

Outside the U.S., Flutter’s divisions also performed well. Revenue in the UK and Ireland grew by 18%, benefiting from expanded iGaming and sportsbook offerings. The International division, which includes operations in Italy and Australia, reported 15% growth.

The newly acquired MaxBet in Italy contributed to this momentum, integrating Flutter’s “Flutter Edge” capabilities, which are designed to optimize pricing, risk management, and digital marketing.

Flutter’s Q3 report also highlights strategic moves to boost its presence in growth markets. The company announced its acquisition of NSX in Brazil and Snai in Italy, aiming to reinforce its position in these regions.

Additionally, Flutter’s decision to initiate a share repurchase program represents confidence in long-term growth and value creation. The first phase of this program will see up to $350 million in shares repurchased by the end of the first quarter of 2025.

With its updated full-year guidance, Flutter expects group revenue growth of 22% year-over-year and an adjusted EBITDA increase of 35%. While unfavorable sports results in early Q4 have offset some of the Q3 gains, the company remains on track to meet or slightly exceed its raised financial targets for 2024.