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Flutter Entertainment 8-K Report, Financial Results (Mar 26, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed March 26, 2024
Period End
March 26, 2024
Security
FLUT
In the record · 2016–202610-K810-Q98-K280

FLUT filed 8 annual reports (10-K), 9 quarterly reports (10-Q) and 280 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed March 26, 2024. Cited figures are marked; the original filing is the authoritative source.

Flutter Entertainment plc reported results for the fiscal year ended December 31, 2023, with revenue of $11,790 milliona, up 24.6% year on year, and Further Adjusted EBITDA of $1,874 million, up 45.4%.

The company also reported a net loss of $1,211 millionb, which included non-cash charges of $1,681 million, among them a $725 million PokerStars trademark impairment and $791 million of acquired intangibles amortization. Adjusted earnings per share rose 25.8% to $3.51, and the leverage ratio fell to 3.1x from 4.4x. US revenue grew 40.7%, and the US segment recorded its first year of positive Adjusted EBITDA, at $65 million.

The filing introduces 2024 guidance, which implies Group revenue growth of 17.5% and Further Adjusted EBITDA growth of 30.2% at the midpoint. Guidance includes US revenue of $5.8 billion to $6.2 billionc and US Further Adjusted EBITDA of $635 million to $785 million, with Group ex-US revenue of $7.65 billion to $8.05 billion. Management reported Group revenue growth of 23.4% for January 1 to March 17, 2024, driven by US revenue growth of 55.6%, while Australia revenue declined 8.8%.

The Board raised the medium-term leverage target to 2.0-2.5xd from 1.0-2.0x. On listing matters, Flutter shares began trading on the NYSE on January 29, 2024 under the ticker FLUT, and the company plans a shareholder vote on May 1, 2024 to move its primary listing to the NYSE, with the transition expected to take effect May 31, 2024 if approved. The filing furnishes a press release and a full year 2023 financial supplement as Exhibits 99.1 and 99.2.

02—Key points

Key Highlights

  1. Revenue of $11,790 million for 2023, up 24.6% year on year, with average monthly players up 20.3% to 12,325 thousand.
  2. Net loss of $1,211 million, including a $725 million PokerStars trademark impairment, $791 million of acquired intangibles amortization, and a $165 million loss on the Fox Option liability fair value change.
  3. Further Adjusted EBITDA of $1,874 million, up 45.4%, with the Further Adjusted EBITDA margin expanding 230 basis points to 15.9%.
  4. US revenue grew 40.7% to $4,484 million, and US Further Adjusted EBITDA reached $167 million, with US Adjusted EBITDA turning positive at $65 million.
  5. 2024 guidance implies Group revenue growth of 17.5% and Further Adjusted EBITDA growth of 30.2% at the midpoint, with Australia Further Adjusted EBITDA expected at approximately $250 million.
  6. Revenue growth of 23.4% for January 1 to March 17, 2024, versus the prior comparable period, with US revenue up 55.6% and Group ex-US revenue up 6.3%.
  7. Medium-term leverage target raised to 2.0-2.5x, and the leverage ratio was 3.1x at December 31, 2023, versus 4.4x a year earlier.

03—Questions

Frequently Asked Questions

  1. Why was the net loss so large despite strong EBITDA growth?

    The filing attributes the $1,211 million net loss mainly to non-cash charges of $1,681 million, including a $725 million PokerStars trademark impairment reflecting the revised 'local hero' strategy, $791 million of acquired intangibles amortization, and a $165 million fair value loss on the Fox Option liability. On an IFRS basis, the net loss was $981 million.

  2. What does the 2024 guidance imply for the US business?

    Guidance for 2024 US revenue is $5.8 billion to $6.2 billion, and US Further Adjusted EBITDA is $635 million to $785 million. The midpoints represent year-on-year growth of 36.3% for revenue and 206.1% for Further Adjusted EBITDA. The company expects approximately 30.0% of US Further Adjusted EBITDA to be generated in the first half of 2024.

  3. How did operating cash flow and free cash flow compare?

    Net cash provided by operating activities fell 19.4% to $937 million, primarily because of a record Sisal lottery jackpot that accrued in 2022 and was paid in February 2023. Adjusted Free Cash Flow rose 62.8% to $938 million, driven mainly by the inflection of the US business.

  4. What changes to the company's listing and capital structure were announced?

    Flutter shares began trading on the NYSE on January 29, 2024, under the ticker FLUT, and continue to trade on the London Stock Exchange. A shareholder vote on a special resolution to move the primary listing to the NYSE is scheduled for the 2024 AGM on May 1, 2024, with the transition expected to become effective May 31, 2024, if approved. The Board also raised the medium-term leverage target to 2.0-2.5x and allowed flexibility above that range for value-creating acquisitions.

04—Continue

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