Flutter quadruples net profit and increases players in Q2 2024

Lea Hogg August 13, 2024

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Flutter quadruples net profit and increases players in Q2 2024

Flutter Entertainment has reported a surge in profits and user numbers for the second quarter, marking its first earnings release since relocating its primary stock market listing and operational headquarters to the United States.

The betting giant announced that its net profit for the second quarter had more than quadrupled to $297 million (€270 million), compared to the same period last year. Additionally, the Average Monthly Players (AMPs), a crucial metric in the gambling industry, saw a 17 percent increase. The company’s revenue also experienced a 20 percent boost, reaching $3.6 billion, while its adjusted EBITDA rose by 17 percent to $738 million.

Flutter’s CEO, Peter Jackson, expressed confidence in the company’s performance, stating that the strong quarter results have bolstered their plans to continue driving customer acquisition, with an optimistic outlook for 2025 and beyond. This positive news led to a 12 percent jump in Flutter’s shares in after-hours trading in New York.

Shift to the US market

The impressive results underscore Flutter’s strategic decision to shift its base from Ireland to the US. The company, which owns the American giant FanDuel, reported approximately $1.5 billion in revenue from its US businesses during the quarter, a 27 percent increase in AMPs compared to the previous year. Flutter is banking on this upward trend to continue as more US states legalize gambling.

Following the strong performance in the second quarter, Flutter has revised its full-year guidance for US revenue to between $6.05 billion and $6.35 billion, and adjusted EBITDA to between $680 million and $800 million. For its non-US business, the company anticipates revenue to be between $7.85 billion and $8.15 billion, with adjusted EBITDA projected at $1.69 billion to $1.85 billion.

Growth in UK and Ireland

In the UK and Ireland, Flutter reported an 18 percent growth in revenue, driven by a 12 percent increase in sports betting and a 25 percent rise in its online gaming business. The company attributed the growth in sportsbook revenue to the Euros, which accounted for 10 percent of sportsbook stakes in the quarter, and an overall increase in sportsbook net revenue margin to 14 percent.

The company noted that the increase in margins was driven by the expansion of its structural revenue margin, as more punters opted for the same game parlay wager, allowing gamblers to place multiple bets tied to one game. Sports results were also more favourable than the previous year, particularly during the Euros, accounting for nearly half of the in-quarter results benefit.

The pending acquisition of Betnacional represents a significant step in Flutter’s strategic expansion and underscores the company’s commitment to investing in promising markets. As regulated betting goes live in Brazil, the deal could provide Flutter with a strong platform to establish a dominant position in one of the world’s most passionate sporting nations.

Flutter’s shares are up $1.35, 0.7 per cent, at $189.65 in early afternoon trading in New York.