Flutter Entertainment PLC Announces Update on Short-Term US Sports Results Impact
Flutter Entertainment (NYSE:FLUT) has reported significant impacts from unfavorable US sports results in Q4 2024. The company experienced adverse outcomes primarily in NFL Parlay and Same Game Parlay bets, with the 2024/2025 NFL season showing the highest rate of favorites winning in nearly 20 years.
The unfavorable results led to an estimated $438m reduction in gross gaming revenue (GGR), approximately $390m in revenue reduction, and $260m decrease in Adjusted EBITDA for the period from November 12 to December 31. As a result, US revenue for 2024 is now estimated at $5.78bn, down from the previous guidance of $6.05bn-$6.25bn. The 2024 US Adjusted EBITDA is revised to approximately $505m, compared to previous guidance of $670m-$750m.
Q4 sportsbook net revenue margin was 6.6%, with structural revenue margin at 14.5%. The Group Ex-US segment showed positive performance, with UK and Ireland operations demonstrating good momentum and favorable sports results in the English Premier League.
Flutter Entertainment (NYSE:FLUT) ha riportato impatti significativi a causa di risultati sportivi sfavorevoli negli Stati Uniti nel quarto trimestre 2024. La società ha subito esiti negativi principalmente nelle scommesse NFL Parlay e Same Game Parlay, con la stagione NFL 2024/2025 che ha mostrato il più alto tasso di vittorie per i favoriti negli ultimi 20 anni.
I risultati sfavorevoli hanno portato a una riduzione stimata di $438 milioni nel lordo delle entrate da gioco (GGR), circa $390 milioni di riduzione delle entrate, e una diminuzione di $260 milioni nell'EBITDA rettificato per il periodo dal 12 novembre al 31 dicembre. Di conseguenza, le entrate negli Stati Uniti per il 2024 sono ora stimate a $5,78 miliardi, in calo rispetto alle precedenti previsioni di $6,05 miliardi-$6,25 miliardi. L'EBITDA rettificato degli Stati Uniti per il 2024 è rivisto a circa $505 milioni, rispetto alle previsioni precedenti di $670 milioni-$750 milioni.
Il margine netto delle entrate del sportsbook nel quarto trimestre è stato del 6,6%, con un margine strutturale delle entrate del 14,5%. Il segmento Ex-US del Gruppo ha mostrato prestazioni positive, con le operazioni nel Regno Unito e in Irlanda che dimostrano un buon slancio e risultati sportivi favorevoli nella Premier League inglese.
Flutter Entertainment (NYSE:FLUT) ha reportado impactos significativos debido a resultados deportivos desfavorables en EE. UU. en el cuarto trimestre de 2024. La compañía experimentó resultados adversos principalmente en apuestas NFL Parlay y Same Game Parlay, con la temporada NFL 2024/2025 mostrando la tasa más alta de favoritos ganadores en casi 20 años.
Los resultados desfavorables condujeron a una reducción estimada de $438 millones en los ingresos brutos de juego (GGR), aproximadamente $390 millones en reducción de ingresos y una disminución de $260 millones en EBITDA ajustado para el período del 12 de noviembre al 31 de diciembre. Como resultado, los ingresos de EE. UU. para 2024 ahora se estiman en $5.78 mil millones, por debajo de la guía previa de $6.05 mil millones a $6.25 mil millones. El EBITDA ajustado de EE. UU. para 2024 se revisa a aproximadamente $505 millones, en comparación con la guía anterior de $670 millones a $750 millones.
El margen de ingresos netos del sportsbook en el cuarto trimestre fue del 6.6%, con un margen estructural de ingresos del 14.5%. El segmento Ex-US del Grupo mostró un desempeño positivo, con las operaciones en el Reino Unido e Irlanda demostrando un buen impulso y resultados deportivos favorables en la Premier League inglesa.
플러터 엔터테인먼트 (NYSE:FLUT)는 2024 4분기에 미국 스포츠 결과의 불리한 영향을 보고했습니다. 이 회사는 주로 NFL 파레이 및 동일 경기 파레이 베팅에서 부정적인 결과를 경험했으며, 2024/2025 NFL 시즌은 거의 20년 만에 가장 높은 승리 비율을 기록했습니다.
이러한 불리한 결과로 인해 총 게임 수익(GGR)이 $438M 감소하는 추정치가 나오고, 약 $390M의 수익 감소와 11월 12일부터 12월 31일까지의 기간에 대한 조정된 EBITDA가 $260M 감소했습니다. 그 결과, 2024년 미국의 수익은 이제 $5.78B로 예상되며, 이전의 가이드인 $6.05B-$6.25B에서 하향 조정되었습니다. 2024년 미국 조정 EBITDA는 약 $505M로, 이전 가이드의 $670M-$750M에서 수정되었습니다.
4분기 스포츠북의 순수익률은 6.6%였으며, 구조적 수익률은 14.5%였습니다. 그룹의 비미국(Ex-US) 부문은 긍정적인 실적을 보였으며, 영국 및 아일랜드의 운영은 좋은 추세와 영어 프리미어 리그에서의 유리한 스포츠 결과를 보여주었습니다.
Flutter Entertainment (NYSE:FLUT) a rapporté des impacts significatifs dus à des résultats sportifs défavorables aux États-Unis au quatrième trimestre 2024. L'entreprise a subi des résultats négatifs principalement sur les paris NFL Parlay et Same Game Parlay, la saison NFL 2024/2025 affichant le taux de victoires des favoris le plus élevé depuis près de 20 ans.
Ces résultats défavorables ont entraîné une réduction estimée de $438 millions de revenus bruts de jeu (GGR), environ $390 millions de réduction de revenus, et une diminution de $260 millions de l'EBITDA ajusté pour la période du 12 novembre au 31 décembre. En conséquence, les revenus américains pour 2024 sont désormais estimés à $5,78 milliards, en baisse par rapport aux prévisions précédentes de $6,05 milliards à $6,25 milliards. L'EBITDA ajusté américain pour 2024 est révisé à environ $505 millions, contre des prévisions précédentes de $670 millions à $750 millions.
La marge nette de revenus des paris sportifs pour le quatrième trimestre était de 6,6%, avec une marge de revenus structurelle de 14,5%. Le segment Ex-US du Groupe a montré des performances positives, avec les opérations au Royaume-Uni et en Irlande montrant un bon élan et des résultats sportifs favorables dans la Premier League anglaise.
Flutter Entertainment (NYSE:FLUT) hat im vierten Quartal 2024 erhebliche Auswirkungen durch ungünstige Sportergebnisse in den USA gemeldet. Das Unternehmen erlebte negative Ergebnisse hauptsächlich bei NFL Parlay und Same Game Parlay Wetten, wobei die NFL-Saison 2024/2025 die höchste Gewinnquote für Favoriten seit fast 20 Jahren aufwies.
Die ungünstigen Ergebnisse führten zu einer geschätzten Reduktion von $438 Millionen beim Bruttospielertrag (GGR), etwa $390 Millionen weniger an Einnahmen und einem Rückgang von $260 Millionen beim angepassten EBITDA für den Zeitraum vom 12. November bis 31. Dezember. Infolgedessen werden die Einnahmen in den USA für 2024 nun auf $5,78 Milliarden geschätzt, gegenüber der vorherigen Prognose von $6,05 Milliarden bis $6,25 Milliarden. Das angepasste EBITDA in den USA für 2024 wird auf etwa $505 Millionen revidiert, im Vergleich zur vorherigen Prognose von $670 Millionen bis $750 Millionen.
Die Nettomarge der Sportwetten im vierten Quartal betrug 6,6%, wobei die strukturelle Umsatzmarge bei 14,5% lag. Der Ex-US-Segment der Gruppe zeigte eine positive Leistung, wobei die Aktivitäten im Vereinigten Königreich und in Irland einen guten Schwung und günstige Sportergebnisse in der englischen Premier League zeigten.
- Structural revenue margin increased 100 basis points year-over-year to 14.5%
- Group Ex-US revenue and Adjusted EBITDA estimated 1% and 2% higher than previous guidance
- Promotional spend reduced by 20 basis points year-over-year to 4.0%
- US revenue guidance reduced by $370m to $5.78bn for 2024
- Adjusted EBITDA guidance lowered by $205m to $505m for 2024
- Q4 experienced $643m adverse impact on GGR due to unfavorable sports results
- Q4 sportsbook net revenue margin declined to 6.6% due to unfavorable sports results
Insights
Flutter's Q4 trading update reveals a substantial hit to financial performance due to unfavorable US sports betting outcomes. The
The Q4 sportsbook net revenue margin of
While concerning, this appears to be a transitory issue rather than a fundamental business problem. The strong performance in UK/Ireland markets and improved structural margins suggest the core business remains robust. The reduced promotional spend of
The unprecedented streak of NFL favorite wins has created a perfect storm for sportsbooks. The
The structural revenue margin improvement to
The separation of structural margins from results-driven variance provides transparency into the true business performance. While the short-term impact is significant, the statistical nature of sports betting means these results should mean-revert over time, making this an opportunistic entry point for long-term investors who understand the business fundamentals remain intact.
DUBLIN, IRELAND, TORONTO, ON, AND NEW YORK, NY / ACCESSWIRE / January 7, 2025 / Flutter Entertainment (NYSE:FLUT)(LSE:FLTR) ("Flutter"), the world's leading online sports betting and iGaming operator today announces a brief update on the impact of US sports results on Q4 2024 trading.
Following our Q3 earnings report on November 12, continued strong US player momentum has been offset by a period of very unfavorable US sports results across the remainder of November and in December, primarily on NFL Parlay and Same Game Parlay outcomes. The 2024/2025 NFL season to date has been the most customer friendly since the launch of online sports betting with the highest rate of favorites winning in nearly 20 years.
The transitory nature of these results has no impact on the underlying assumptions and guidance expectations communicated at our Investor Day in September1, and we remain confident in the growth drivers and long-term growth trajectory set out at the Investor Day.
These customer friendly results generated an estimated adverse gross gaming revenue (GGR) impact of
US revenue for 2024 is therefore now estimated to be c.
Our revised expectations include Q4 sportsbook net revenue margin of
Structural revenue margin of
14.5% , broadly in line with expectations and reflecting an increase of 100 basis points year-over-year. This was driven by FanDuel's strong parlay product offering combined with the seasonally higher-margin sports mixUnfavorable sports results of 390bps (Q4 2023: 240bps unfavorable)
Promotional spend of
4.0% , a reduction of 20 bps year-over-year as mitigation against adverse sports outcomes more than offset the previously communicated increased investment in new player acquisition volumes
Q4 US revenue is therefore now expected to be approximately
In the Group Ex-US, continued good momentum in UKI in particular with favorable sports results in the English Premier League, means we now estimate 2024 revenue and Adjusted EBITDA will be approximately
A more detailed update will be provided with our scheduled Q4 earnings on March 4, 2025, alongside formal guidance for 2025.
This announcement contains inside information as defined under assimilated Regulation (EU) No. 596/2014, which is part of the laws of the United Kingdom by virtue of the European Unition (Withdrawal) Act 2018 (as amended). The person responsible for arranging release of this information on behalf of Flutter is Edward Traynor, Company Secretary of Flutter.
Notes
1. 2027 Revenue and Adjusted EBITDA guidance was provided at our Investor Day on September 25 for Flutter Group, along with forward-looking commentary on potential US 2025 revenue and Adjusted EBITDA margin accretion. Our 2025 comments, to which there are no changes, are based on our 2024 revenue and Adjusted EBITDA guidance per our Q2 earnings on August 13, 2024 (midpoints of 2. The lower-than-normal level of customer generosity mitigation (where customer generosity reflects variable promotional spend accounted for as a deduction from gross gaming revenue) reflects both the distribution of winnings to a narrow range of customers, and the timing of adverse sports results within the quarter, with significant adverse results occurring on December 30. |
3. Beginning January 1, 2024, the Group revised its definition of Adjusted EBITDA, which is the segment measure used to evaluate performance and allocate resources. The definition of Adjusted EBITDA now excludes share-based compensation as management believes inclusion of share-based compensation can obscure underlying business trends as share-based compensation could vary widely among companies due to different plans in place resulting in companies using share-based compensation awards differently, both in type and quantity of awards granted. 4. The estimated adverse Adjusted EBITDA impact reflects the estimated gross profit impact and is before any sales and marketing, or operating cost mitigation 5. Primarily reflecting estimated sales and marketing cost reduction and phasing benefits, and an estimated reduction in variable employee salary accruals. |
Clarification on basis of preliminary financial information
As at the date of this release we have not completed our financial closing procedures for the period ended December 31, 2024. The preliminary financial information included in this release may therefore be subject to change as we complete our financial reporting processes and controls.
Additionally, our independent registered public accounting firm has not audited, reviewed, compiled or performed any procedures with respect to the preliminary financial information and does not express an opinion or provide any other form of assurance with respect to this preliminary financial information. During the course of the preparation of our consolidated financial statements and related notes as of and for the period ended December 31, 2024, we may identify items that would require us to make adjustments to the preliminary financial information presented above. As a result, investors should exercise caution in relying on this information. The preliminary financial information should not be viewed as a substitute for full financial statements prepared in accordance with U.S. GAAP.
Forward-Looking Statements
The preliminary financial information included in this press release is preliminary, unaudited and subject to completion and may change as we complete the operating of our financial reporting processes and controls. See "Clarification on basis of preliminary financial information" above.This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited, to statements related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, you can identify these forward-looking statements by the use of words such as "outlook", "believe(s)", "expect(s)", "potential", "continue(s)", "may", "will", "should", "could", "would", "seek(s)", "predict(s)", "intend(s)", "trends", "plan(s)", "estimate(s)", "anticipates", "projection", "goal", "target", "aspire", "will likely result", and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Such factors include, among others: the preliminary nature of the financial information include in this press release as discussed in "Clarification on basis of preliminary financial information" above, Flutter's ability to effectively compete in the global entertainment and gaming industries; Flutter's ability to retain existing customers and to successfully acquire new customers; Flutter's ability to develop new product offerings; Flutter's ability to successfully acquire and integrate new businesses; Flutter's ability to maintain relationships with third-parties; Flutter's ability to maintain its reputation; public sentiment towards online betting and iGaming generally; the potential impact of general economic conditions, including inflation, fluctuating interest rates and instability in the banking system, on Flutter's liquidity, operations and personnel; Flutter's ability to obtain and maintain licenses with gaming authorities, adverse changes to the regulation (including taxation) of online betting and iGaming; the failure of additional jurisdictions to legalize and regulate online betting and iGaming; Flutter's ability to comply with complex, varied and evolving U.S. and international laws and regulations relating to its business; Flutter's ability to raise financing in the future; Flutter's success in retaining or recruiting officers, key employees or directors; litigation and the ability to adequately protect Flutter's intellectual property rights; the impact of data security breaches or cyber-attacks on Flutter's systems; and Flutter's ability to remediate material weaknesses in its internal control over financial reporting.
Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found in Part I, "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the SEC on March 26, 2024 and other periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company's filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
About Flutter Entertainment plc
Flutter is the world's leading online sports betting and iGaming operator, with a market leading position in the US and across the world. Our ambition is to leverage our significant scale and our challenger mindset to change our industry for the better. By Changing the Game, we believe we can deliver long-term growth while promoting a positive, sustainable future for all our stakeholders. We are well-placed to do so through the distinctive, global competitive advantages of the Flutter Edge, which gives our brands access to group-wide benefits to stay ahead of the competition, as well as our clear vision for sustainability through our Positive Impact Plan.
Flutter operates a diverse portfolio of leading online sports betting and iGaming brands including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, MaxBet, Junglee Games and Adjarabet.
Contacts:
Investor Relations: | Media Relations: |
Email: corporatecomms@flutter.com |
Non-GAAP financial measures
This press release includes non-GAAP financial measures that we use to supplement our results presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We believe these measures provide visibility to the performance of our business by excluding the impact of certain income or gains and expenses or losses. Additionally, we believe these metrics are widely used by investors, securities analysts, ratings agencies and others in our industry in evaluating performance. Our non-GAAP financial measures may not be comparable to similarly-titled measures used by other companies, have limitations as analytical tools and should not be considered in isolation. Additionally, we do not consider our non-GAAP financial measures as superior to, or a substitute for, the equivalent measures calculated and presented in accordance with U.S. GAAP. Additional information regarding these measures can be found in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov.
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SOURCE: Flutter Entertainment PLC
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