According to data from InvestingPro, the company has shown strong momentum with a 52% return over the past year. The company, known for its popular FanDuel platform, has faced a period of favorable results for customers, particularly in NFL Parlay and Same Game Parlay betting, which have proven unfavorable for the company's earnings.
Despite continued strong momentum from U.S. players since the Q3 earnings report on 11/12/2022, the latter part of Q4 saw a number of favorites winning NFL games, marking the most customer-friendly season in nearly two decades. This resulted in an adverse impact on gross gaming revenue (GGR) of $438 million and estimated reductions in revenue of approximately US$390m and Adjusted EBITDA of approximately $260 million for the period 11/12/2022 to 12/31/2022.
InvestingPro analysis shows that the company maintains a moderate level of debt and is expected to return to profitability this year, with analysts forecasting positive earnings per share of US$ 5,91 for 2024. As a result, Flutter now estimates its 2024 U.S. revenue to be approximately US$ 370m below the midpoint of prior guidance, totaling approximately US$ 5.78bn. Revised U.S.
Adjusted EBITDA is expected to be approximately US$ 205m lower than the midpoint of prior guidance, at approximately US$ 505m, even after factoring in one-off cost mitigation efforts. Fourth-quarter sports betting net revenue margin is expected to be 6.6%, with a structural revenue margin of 14.5% and an unfavorable impact from sports earnings of 390 basis points.
Promotional spending was reduced by 20 basis points year-over-year as part of the company’s efforts to offset adverse sports earnings. In contrast, the Ex-US Group, particularly in the UK and Ireland, experienced favorable sports results, leading to estimated revenue and Adjusted EBITDA for 2024 that will be approximately 1% and 2% higher than previous guidance.
Flutter Entertainment plans to provide a more detailed update during its scheduled fourth quarter earnings release on March 4, 2025, along with formal guidance for 2025. This update is based on a press release and has not yet been audited or reviewed by an independent registered public accounting firm.
Investors are advised to consider the preliminary nature of this financial information. For deeper insights into Flutter’s financial health and future prospects, InvestingPro subscribers can access 12 additional exclusive ProTips and a comprehensive Pro Research Report, which provides detailed analysis of the company’s valuation, growth potential and market position among the top 1,400+ US stocks.
In other recent news, Flutter Entertainment experienced significant growth in its financial performance. The company reported a substantial 27% year-over-year increase in Q3 revenue to US$ 3.25 bn, driven largely by a 51% increase in revenue from its U.S. operations.
Flutter’s adjusted earnings per share also beat expectations, coming in at US$0.43. These robust financial results prompted the company to revise its full-year 2024 guidance upward, now expecting group revenue of US$ 14.25-14.55bn and adjusted EBITDA of US$ 2.44-2.62bn.
In addition to these financial highlights, Flutter Entertainment has initiated a share repurchase program, involving the repurchase of up to US$ 350m of its common stock. This program, part of a larger US$ 5bn initiative, is managed by Goldman Sachs.
In response to these developments, analysts at Goldman Sachs, Macquarie, Craig-Hallum and Needham maintained a Buy rating on Flutter and adjusted their price targets.
Flutter Entertainment also disclosed transactions in the company’s securities by its management team. This announcement complies with the UK Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.
The company also updated its total voting rights, a routine disclosure for publicly traded companies. These recent developments reflect Flutter Entertainment’s commitment to transparency, strategic growth and strong operational momentum.
Source: Investing.com
