01—Abstract
Summary
Summary of the 10-Q filed November 12, 2024. Cited figures are marked; the original filing is the authoritative source.
Flutter Entertainment plc's Form 10-Q for the quarter ended September 30, 2024 reports revenue of $3,248 milliona for the three months, up from $2,558 million a year earlier, and $10,256 million for the nine months versus $8,477 million.
Operating profit was $97 millionb for the quarter, compared with an operating loss of $137 million in the prior-year quarter, and net loss narrowed to $114 million from $262 million. Adjusted EBITDA rose to $450 million from $258 million for the quarter, with an Adjusted EBITDA Margin of 13.9%. For the nine months, net income was $6 million versus a net loss of $309 million, and Adjusted EBITDA was $1,702 million, with a 16.6% margin.
The filing shows continued growth in the U.S. segment, where quarterly revenue was $1,250 millionc, and strong performance in UKI and International. Other expense, net widened to $122 million for the quarter, driven mainly by a $121 million fair value loss on the Fox Option liability. Cash flow from operating activities for the nine months was $950 million.
The Board authorized a share repurchase program of up to $5 billiond over three to four years, and the company intends to start a $350 million 10b5-1 repurchase plan running from November 14, 2024 to March 31, 2025. Management concluded that disclosure controls were not effective as of September 30, 2024 because a material weakness in internal control over financial reporting remained unremediated. The filing also discloses several significant contingencies: a Georgian court judgment of GEL 896 million ($330 million) against Atlas Holdings LLC in a trademark dispute, which the company has not accrued for, and Indian GST notices to Junglee of ₹179.1 billion ($2.1 billion), also unaccrued.
In September 2024 the company announced acquisitions of a 56% interest in NSX Group (Betnacional, Brazil) for approximately $364 million and of 100% of Snaitech S.p.A. for $2.6 billion, both expected to close in 2025. On October 23, 2024 it obtained commitments for a €2.5 billion term loan to fund the Snaitech acquisition.
02—Key points
Key Highlights
- Revenue rose 27% to $3,248 million for Q3 2024, with U.S. segment revenue up 51% to $1,250 million.
- Operating profit of $97 million for Q3 2024 compared with an operating loss of $137 million a year earlier; net loss narrowed to $114 million from $262 million.
- Adjusted EBITDA increased 74% to $450 million in Q3, with Adjusted EBITDA Margin of 13.9% versus 10.1%.
- Nine-month net income of $6 million versus a net loss of $309 million, and nine-month Adjusted EBITDA of $1,702 million (16.6% margin).
- Fair value loss of $121 million on the Fox Option liability drove other expense, net of $122 million in the quarter.
- Board authorized up to $5 billion in share repurchases over three to four years; a $350 million 10b5-1 plan is planned for November 14, 2024 to March 31, 2025.
- Management reported disclosure controls were not effective due to an unremediated material weakness in internal control over financial reporting; a €2.5 billion term loan was committed to fund the Snaitech acquisition.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q3 FY2024, Flutter Entertainment lost $0.04.
- Revenue$3.25B100.0%
- Cost of revenue−$1.75B53.9%
- Gross profit$1.50B46.1%
- Operating costs−$1.40B43.1%
- Operating income$97.0M3.0%
- Interest, other & tax−$211.0M6.5%
- Net income−$114.0M3.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 12, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $3.25B$2.56B | +27.0% |
| Cost of Revenue | $1.75B$1.39B | +26.4% |
| Gross Profit | $1.50B$1.17B | +27.6% |
| R&D Expenses | $213.00M$214.00M | −0.5% |
| Operating Income | $97.00M-$137.00M | +170.8% |
| Interest Expense | $123.00M$101.00M | +21.8% |
| Net Income | -$114.00M-$262.00M | +56.5% |
| EPS (Basic) | $-0.58$-1.55 | +62.6% |
| EPS (Diluted) | $-0.58$-1.55 | +62.6% |
| Shares Outstanding (Basic) | 178.00M178.00M | 0.0% |
| Shares Outstanding (Diluted) | 178.00M178.00M | 0.0% |
05—Questions
Frequently Asked Questions
How did Flutter's revenue and profitability change in the third quarter of 2024?
Revenue increased 27% to $3,248 million from $2,558 million. Operating profit was $97 million versus an operating loss of $137 million in the prior-year quarter, and the net loss narrowed to $114 million from $262 million. Growth was led by the U.S. segment, where revenue rose 51% to $1,250 million, and by UKI, where revenue grew 18% to $846 million.
What are the main legal and tax exposures disclosed in the filing?
The company disclosed a Georgian court judgment of GEL 896 million ($330 million) against Atlas Holdings LLC in a dispute over the Aviator brand, and Indian GST notices to Junglee of ₹179.1 billion ($2.1 billion). No liability has been accrued for either matter, and the company says it is not probable that a liability has been incurred. Austrian and German player claims are also disclosed, with €15 million ($17 million) accrued and a further €44 million ($49 million) claimed but not accrued.
What acquisitions and financing commitments were announced?
In September 2024 Flutter announced a 56% interest in NSX Group, the Brazilian operator of Betnacional, for approximately $364 million, and a 100% stake in Snaitech S.p.A. for $2.6 billion (€2.3 billion). Both are expected to close in 2025. On October 23, 2024 the company obtained binding commitments for a €2.5 billion senior secured first lien term loan to fund the Snaitech acquisition.
What is the status of the company's share repurchase program and internal controls?
The Board authorized a share repurchase program of up to $5 billion over three to four years, and no repurchases had been made as of September 30, 2024. The company intends to enter into a 10b5-1 plan for up to $350 million of repurchases from November 14, 2024 to March 31, 2025. Management concluded that disclosure controls were not effective as of September 30, 2024 because a material weakness in internal control over financial reporting, identified in the 2023 Annual Report, had not been remediated.
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