Flutter Publishes Q3 Results, Prepares for Share Buyback

Gambling and betting giant Flutter Entertainment has published its Q3 report, highlighting significant increases across multiple metrics. As a result, the company updated its guidance, introducing a small raise, and announced the launch of the first tranche of its new share buyback program.

Flutter Continued to Excel

In the three months ended September 30, Flutter recorded revenue of $3.25 billion, up 27% year-on-year. At the same time, the company’s net loss decreased from $262 million in Q3 2023 to only $114 million in Q3 2024. The net loss margin was 3.5%, representing an increase of 670bps.

Adjusted EBITDA, on the other hand, stood at $450 million for the period, marking a stellar year-on-year increase of 74%. The adjusted EBITDA margin for the period stood at 13.9%, up 380bps.

As other metrics increased, the company’s loss per share declined significantly to $0.58 per share ($1.55 in the prior-year period). Adjusted earnings per share, on the other hand, stood at $0.43, representing an improvement of 530% from an adjusted loss per share of $0.10 in Q3 2023.

Net cash from operating activities declined significantly, plummeting from $554 million in Q3 2023 to $290 million in Q3 2024 (a decrease of 48%). This decrease was attributed to derivative settlements in the current and prior year period. Free cash flow, meanwhile, slumped by 74% from $434 million in the prior-year period to $112 million.

Flutter’s total debt decreased by $146 million to $6.9 billion from $7 billion at December 31, 2023. As of September 30, the group had leverage ratio of 2.4x, in line with its medium-term leverage targets.

The Company Increased Its Guidance Despite US Headwinds

In the meantime, Flutter reported a strong start to the NFL season, underpinned by new product launches and continued iGaming strength. This led to a 16% overall increase in average monthly players (AMPs) and a 28% AMPs increase in the US.  

The company also reported strong performance in non-US markets. In the UK and Ireland, its growth was reinforced by July’s European Football Championship. In Australia, the company recorded an increase in AMPs and favorable betting results. As for Italy, Flutter Edge’s capabilities drove Sisal’s 200bps year-on-year market share.           

Other Q3 highlights included the acquisitions of NSX and Snai, which will expand the company’s reach in Brazil and Italy.

Flutter used the opportunity to update its FY guidance. The group guidance was raised 1% for revenue and adjusted EBITDA to reflect the group’s strong performance outside the US. This improvement implies an FY revenue increase of 22% YOY and an adjusted EBITDA increase of 35% YOT at the midpoints.

The Ex-US revenue guidance was increased 3% to $8.2 billion, with an adjusted EBITDA of $1.82 billion. The US guidance range, on the other hand, forecasts a 1% decline in revenue to $6.15 billion and a 4% decrease in adjusted EBITDA to $710 million.

Flutter Prepares to Initiate First Share Buyback Tranche

CEO Peter Jackson commented on the results, describing Q3 as an excellent quarter for the company. In addition, he praised the fantastic start to the NFL season. The CEO said that the wagers per minute at their peak have already surpassed the betting intensity during Super Bowl LVII.

We believe that the Group has exciting growth prospects due to our unparalleled leadership positions across the world, underpinned by access to the Flutter Edge. We expect to have significant capital to deploy over the coming years and I am excited to commence the share repurchase program in Q4.

Peter Jackson, CEO, Flutter Entertainment

Speaking of which, Flutter announced that its share buyback program will be led by Goldman Sachs & Co LLC, which will repurchase shares on behalf of the operator. Under the agreement, Goldman Sachs & Co will buy back up to $350 million in shares on the NYSE.

The program is set to kick off on November 14 and is set to end by March 31, 2025. The objective is to reduce Flutter’s share capital.

This buyback is the first tranche of Flutter’s $5 billion share buyback, which was announced in September. Decisions related to future tranches will be based on the company’s capital needs and market conditions.