Flutter Reports $375M Comprehensive Net Loss in Q1, 16% Revenue Growth

The leading online sports betting and iGaming operator with a versatile portfolio of brands including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, and MaxBet, Flutter Entertainment plc, has published its Q1 2024 financial report.

The industry leader, which recorded $11,790 million of revenue globally for fiscal year 2023, and $3,397 million of revenue globally for the first quarter of the current year that ended March 31, has reported a comprehensive net loss of $375 million, a net loss of $177 million, an 11% rise in average monthly players, and a 16% boost in revenue.  

Financial Overview for Q1

Flutter’s net loss of $177 million, $66 million higher YoY, was recorded after $356 million in non-cash charges due to $172 million acquired intangibles amortization and $184 million fair value change in Fox Option liability from $64 million in Q1 2023. 

The group’s Adjusted EBITDA reached the $514 million mark, signaling an increase of 46%. 

The US Adjusted EBITDA reached $26 million from -$53 million in the same quarter of last year. The growth was triggered by strong revenue growth and important operating leverage. 

Despite the ongoing investments in disciplined US player acquisition, the group announced an Adjusted EBITDA margin of +680bps. 

At the same time, the Group Ex-US Adjusted EBITDA was $488 million +20%, showcasing revenue growth. 

Flutter published an Adjusted EBITDA margin expansion of 260bps, mostly as a result of sales and marketing leverage, as well as the one-off credit from the settlement of historic litigation. 

The group recorded a $0.52 drop in net loss per share and a $0.59 decrease in adjusted earnings per share as a result of the Fox Option charge (-$1.04). 

Thanks to the YoY US player deposit movement and solid operational performance converting into cash, Flutter saw its net cash provided by operating activities go up $386 million to $337 million.

16% Revenue Growth 

The group’s strategy proved to be successful in helping it deliver ongoing growth, leading to revenue growth of 16%. 

Q1 was another excellent quarter for the US market with a 15% rise in the number of average monthly players from 12,349,000 in Q1 2023 to 13,722,000 in Q1 2024. 

US revenue went up 32%, despite the unfavorable sports results recorded in the second half of March. 

FanDuel, the group’s leading brand in sportsbook and iGaming, enjoyed a successful launch in North Carolina where more than 5% of adults registered to the platform in the first 45 days. 

“An Excellent Start to The Year”

Flutter’s chief executive officer, Peter Jackson, called the first quarter “an excellent start to the year,” praising “FanDuel’s top-line momentum” in the United States. 

Jackson also expressed their desire to keep expanding their player base and market share while continuing to embed future profits within their business using “disciplined investment.”

Outside of the US, Flutter plans to keep on offering “the best products” for players while “driving good momentum in key markets.”

The CEO used the example of the successful UK launch of Super Sub on Paddy Power, which turned into their “most successful product launch to date.”

He also mentioned the Italian market where Flutter “reached an all-time record” last month. 

Jackson also took the opportunity to express their pride for being one of the founding members of the US Responsible Online Gaming Association as well as a “powerful advocate for building a sustainable sector in the US.”

At the start of May, 98% of Flutter’s shareholders gave the green light to the group’s shift to the New York Stock Exchange.