Key points:
- Flutter’s US revenue for 2024 is now estimated to be $5.78bn, $370m lower than what was stated during the previous guidance midpoint
- The company’s US adjusted EBITDA projection was also brought down by approximately $205m, now set at $505m
Flutter Entertainment has provided an update on the impact of "unfavorable" short-term sports betting results, including lowering its 2024 US revenue projection by $370m and its US adjusted EBITDA estimation by $205m.
The company stated that the 2024-2025 NFL season has seen favorites win at the highest rate recorded in nearly 20 years, creating one of the most customer-friendly betting periods since the launch of online sports betting. Flutter operates FanDuel sportsbook in the US, which became the number one iGaming operator by market share during August 2024.
The results were reported to generate an estimated adverse gross gaming revenue (GGR) impact of $438m, reductions in revenue of approximately $390m and adjusted EBITDA reductions of approximately $260m for the period ranging from November 12 to December 31, 2024.
Also as a result of the customer-friendly outcomes, Flutter has reduced its estimates for 2024 US revenue and adjusted EBITDA from the previous guidance midpoint, as revenue projections were lowered to approximately $5.78bn and adjusted EBITDA to $505m.
“The transitory nature of these results has no impact on the underlying assumptions and guidance expectations communicated at our Investor Day in September, and we remain confident in the growth drivers and long-term growth trajectory set out at the Investor Day,” Flutter Entertainment said in the update.
Good to know: Flutter authorized a share repurchase program of up to $5bn on September 25, 2024 during an event held for investors
The revised expectations also include a Q4 2024 sportsbook net revenue margin of 6.6%, reflecting a structural revenue margin of 14.5%, unfavorable sports results and a reduction in promotional spend year-over-year.
Flutter’s US revenue for the fourth quarter of 2024 is now expected to be approximately $1.59bn and adjusted EBITDA was projected to be $161m. The figures display an overall fourth quarter betting impact totaling $643m in GGR, $550m in revenue and $360m in adjusted EBITDA.
The company stated that a more detailed update will be provided once its full Q4 2024 earnings report is released in March 2025, alongside guidance for the remainder of the year.
