Flutter Celebrates Revenues Above Expectations
Flutter CEO Peter Jackson says the company is performing above expectations. Flutter has adjusted its full-year financial targets downwards despite its results for Q3.
Flutter Hails Excellent Quarter with Rising Revenues
Flutter Entertainment has revealed its “excellent” third-quarter results, but has still opted to downgrade its expectations for its full-year finances.
The company, which owns betting brands such as Betfair and Paddy Power in the UK and FanDuel in the United States, is among the largest in the gambling industry.
For the three months to the end of September 2024, Flutter recorded revenues of $3.25 billion, which it says was up 27% year-on-year.
However, sales costs were up by 26.4% year-on-year to $1.75 billion, with Flutter managing to record a profit of $97 million for the three-month period.
This represents a turnaround from last year’s loss of $137 million, and its adjusted EBITDA hit $450 million for the quarter, which was up 74%.
Flutter’s stock price rose on the back of the financial results, even though the company said its full-year revenues are expected to come in between $6.05 billion and $6.25 billion. This is a slight drop from the previous range of $6.05 billion to $6.35 billion, as Flutter previously said.
Beating Expectations
The chief executive of Flutter, Peter Jackson, said the company was happy with the results.
“Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and adjusted EBITDA guidance for 2024,” he said.
Flutter has targeted the US market in particular through its FanDuel brand in the last few years.
Jackson said the new NFL season had been good news for Flutter, which has seen peak wagers per minute already at a higher level than during the Super Bowl LVII match.
“Our proprietary product offering continued to drive strong parlay penetration as well as a step up in live betting handle,” Jackson added in a statement.
Italian operator Sisai is among the companies acquired by Flutter in recent years, and the Italian lottery licence could be a future target for Flutter.
“Sisal continued to make significant share gains in Italy as we look to expand our presence there with the addition of Snai. In Australia, Sportsbet has been demonstrating encouraging trends,” Jackson said.
UKI Growth
Despite an increasing focus on the US and mainland Europe, the UK and Ireland (UKI) is still an important target market for Flutter.
Its Q3 results show its UKI segment saw revenue growth of 18% in the three-month period to the end of September, while adjusted EBITDA was up 29% to $237 million.
Sportsbook revenue from the UKI region was up 9% at Flutter, which saw an 8% rise in stakes. The European Championship was cited as a particularly strong driver of growth for Flutter over the period, with England reaching the final but losing out to Spain.
