During the third-quarter earnings call, Flutter CEO Peter Jackson opened by calling the quarter “very strong for the group and once again ahead of market expectations.” The headline number is a 74% increase in EBITDA to US$450 million. It showed a US$58 million profit in the US. The company also raised guidance on revenue and EBITDA by 1%.
According to its financial results, Flutter did have a net loss of US$114 million for the quarter, but that was a US$148 million year-over-year improvement. Combined core profit in Australia, Britain and across Europe were up 24%. Flutter is live around the world in sports betting and iGaming.
Jackson also responded a question about the possibility of entering the Florida market. Earlier this year, Hard Rock International chairman and Seminole Gaming CEO Jim Allen said his company is open to partnerships in the state. The Seminole tribe has a monopoly on gambling, including sports betting
“Excited to take advantage” of Brazil
Executives entertained questions about other parts of the world, including Australia, Brazil, Italy and the UK and Ireland (UKI). Many eyes are on Brazil, which is aiming to launch legal sports betting on 1 January 2025, although the regulatory and legislative process has not moved as quickly or smoothly as many stakeholders hoped.
CFO Rob Coldrake said Flutter is planning for a 1 January launch, but “there are various regulator challenges there at the moment. We are confident with the progress we have made in Brazil… and we’re excited to take advantage of what we think is a really exiting market with a lot of opportunity.”
In September Flutter bought a 56% stake in Betnacional parent NSX Group and with it became one of the country’s top three wagering companies. Along with its Betfair product, Flutter has 11% market share.
With the NSX purchase, Flutter continued its M&A strategy of buying existing, successful companies that it gives a lift to, but keeps mostly under existing or local management.
Commenting on the results, Peter Jackson said: “Flutter had an excellent quarter, with revenue growth accelerating to 27%, well ahead of market expectations.”
He further highlighted Flutter’s long-term strategy, emphasising the company’s position as “an ‘and’ business, with opportunities to deploy capital both organically and through M&A, as seen with the recent Snai (Italy) and NSX (Brazil) acquisitions.”
“We expect to have significant capital to deploy over the coming years and are excited to launch our share repurchase programme in Q4,” Jackson concluded.
Source: GMB / iGB
