01—Abstract
Summary
Summary of the 10-K filed March 4, 2025. Cited figures are marked; the original filing is the authoritative source.
Flutter Entertainment plc (FLUT) reported fiscal 2024 revenue of $14,048 milliona, up from $11,790 million in fiscal 2023, with net income of $162 million compared with a net loss of $1,211 million a year earlier.
Adjusted EBITDA rose to $2,357 millionb (16.8% margin) from $1,875 million (15.9%). The U.S. division grew revenue 32% to $5,798 million and improved its Adjusted EBITDA to $507 million, while the UKI division grew revenue 18% to $3,598 million. Fiscal 2024 included a $426 million fair value loss on the Fox Option liability, which weighed on other expense.
The company also disclosed material weaknesses in internal control over financial reporting as of December 31, 2024, covering risk assessment, complex accounting controls, general IT controls, and documentation, and it concluded that disclosure controls were not effective. Management stated the financial statements nonetheless fairly present results in conformity with GAAP. Long-term debt was $6,736 millionc at year-end, and the company has a $5 billion share repurchase program under which $121 million had been used by December 31, 2024.
Pending acquisitions of Snaitech S.p.A. (about $2.4 billiond) and NSX Group (about $320 million) are expected to close in 2025. The filing also flags material risk items for investors, including a potential exercise of the Fox Option (carried at a $4.5 billion option price), a DGGI GST claim in India totaling $2.3 billion that the company disputes, and tightening UK and Irish gambling regulation that management estimates could reduce UKI annual revenue by between £200 million and £250 million cumulatively.
02—Key points
Key Highlights
- Revenue of $14,048 million in fiscal 2024, up from $11,790 million in fiscal 2023; AMPs rose to 13.9 million from 12.3 million.
- Net income of $162 million in fiscal 2024 versus a net loss of $1,211 million in fiscal 2023; diluted EPS of $0.24.
- U.S. segment revenue grew 32% to $5,798 million with Adjusted EBITDA of $507 million, up from $232 million; UKI revenue rose 18% to $3,598 million.
- Adjusted EBITDA of $2,357 million, a 16.8% margin, up from $1,875 million and 15.9% in fiscal 2023.
- Management identified material weaknesses in internal control over financial reporting as of December 31, 2024, and concluded disclosure controls were not effective.
- Fox Option liability fair value rose to $810 million, driving a $426 million fair value loss in other expense; the option price is $4.5 billion and Fox has until December 2030 to exercise.
- Pending acquisitions of Snaitech (about $2.4 billion cash) and NSX Group (about $320 million) are expected to close in 2025; long-term debt stood at $6,736 million.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Flutter Entertainment kept $0.01.
- Revenue$14.05B100.0%
- Cost of revenue−$7.35B52.3%
- Gross profit$6.70B47.7%
- Operating costs−$5.83B41.5%
- Operating income$869.0M6.2%
- Interest, other & tax−$707.0M5.0%
- Net income$162.0M1.2%
Where FY2024 revenue went
$14.05B- Cost of revenue: $7.35B, 52% of revenue
- Other operating costs: $5.01B, 36% of revenue
- Net income: $162.0M, 1.2% of revenue
- R&D: $820.0M, 5.8% of revenue
- Interest, other & tax: $707.0M, 5.0% of revenue
Kept 1.2% as net incomeNet income $162.0M · 1.2%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed March 4, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $14.05B$11.79B | +19.2% |
| Cost of Revenue | $7.35B$6.20B | +18.4% |
| Gross Profit | $6.70B$5.59B | +19.9% |
| R&D Expenses | $820.00M$765.00M | +7.2% |
| Operating Income | $869.00M-$549.00M | +258.3% |
| Interest Expense | $480.00M$424.00M | +13.2% |
| Net Income | $162.00M-$1.21B | +113.4% |
| EPS (Basic) | $0.24$-6.89 | +103.5% |
| EPS (Diluted) | $0.24$-6.89 | +103.5% |
| Shares Outstanding (Basic) | 178.00M177.00M | +0.6% |
| Shares Outstanding (Diluted) | 180.00M177.00M | +1.7% |
05—Questions
Frequently Asked Questions
How did Flutter's profitability change in fiscal 2024?
Flutter reported net income of $162 million for fiscal 2024, compared with a net loss of $1,211 million in fiscal 2023, and operating profit of $869 million versus an operating loss of $549 million. The fiscal 2023 results included a $725 million impairment of the PokerStars trademark. Fiscal 2024 included a $426 million fair value loss on the Fox Option and a $146 million income tax benefit, largely from a release of U.S. valuation allowance.
What are the main drivers of Flutter's revenue growth?
The filing attributes growth primarily to the U.S. division, where revenue rose 32% to $5,798 million on AMP growth and new state launches, and to UKI, where revenue rose 18% to $3,598 million, helped by the UEFA European Football Championship and iGaming AMP growth. Sports results had an approximately 3% negative impact on total revenue growth, mainly from unfavorable NFL results in the fourth quarter.
What material weaknesses did Flutter disclose?
Management concluded that internal control over financial reporting was ineffective as of December 31, 2024, citing material weaknesses in risk assessment, complex accounting and valuation controls, general IT controls over user access and change management, documentation of reviews, and controls at the Sisal business. Management says the consolidated financial statements nonetheless fairly present the company's financial position in conformity with GAAP, and it has a multi-year remediation plan that is ongoing.
What is the Fox Option and why does it matter to investors?
The Fox Option gives FSG Services LLC, a Fox subsidiary, the right to acquire an 18.6% equity interest in FanDuel Group Parent LLC from Flutter. The option price was $4.5 billion as of December 31, 2024, subject to a 5% annual compounding adjustment, and must be exercised in full with cash. The filing notes that if Fox exercises, Fox could gain consent rights over certain FanDuel actions, which could constrain Flutter's strategy. The option is carried at a fair value of $810 million, and changes in that value flow through earnings.
What capital allocation plans did Flutter announce?
Flutter's Board authorized a share repurchase program of up to $5 billion in September 2024, which the company expects to deploy over three to four years. During fiscal 2024 it repurchased 444,746 shares for $121 million, leaving about $4.9 billion available. Flutter has not paid dividends since May 2020, and the filing states that repurchases and any future dividends are at the Board's discretion. The company also had $1,531 million of cash and cash equivalents at year-end.
06—Continue