Did Flutter change its 2024 financial guidance?

No. The company said it remains confident in its financial year 2024 guidance provided on March 26, 2024, despite unfavorable US sports results in the last two weeks of March, and that there is no change to the previously communicated ranges. Guidance midpoints include US revenue of $6.0 billion and US Adjusted EBITDA of $710 million, and Group Ex-US revenue of $7.85 billion and Adjusted EBITDA of $1.73 billion.

Why did the company report a larger net loss despite improved operating performance?

The net loss of $177 million, which was $66 million higher than a year earlier, included non-cash charges of $356 million. These consisted of a $184 million loss from the change in fair value of the Fox Option liability, reflecting a higher valuation of FanDuel, and $172 million of acquired intangibles amortization. The company said the improved financial performance was more than offset by an associated tax charge and the Fox Option fair value change.

How did the US business perform in the quarter?

US revenue increased 32% to $1,410 million, with sportsbook revenue up 30% and iGaming revenue up 49%. US Adjusted EBITDA was $26 million, compared with negative $53 million in Q1 2023, and Adjusted EBITDA margin expanded 680 basis points to 1.8%. The filing states that sports results over the last two weeks of the quarter were 320 basis points, or $76 million, unfavorable.

What changes did the company announce regarding its listing and headquarters?

On May 1, shareholders voted to move Flutter's primary listing to the US. The transition is expected to become effective on May 31, 2024. The company also moved its operational headquarters to New York, reflecting the importance of the US sports betting and iGaming market to its business.

How is the company's balance sheet and debt position evolving?

Total debt decreased to $6,836 million from $7,056 million at December 31, 2023, and net debt was broadly in line at $5,684 million compared with $5,795 million. The leverage ratio improved to 2.8x from 3.1x based on last 12 months Adjusted EBITDA. On April 29, 2024, the company refinanced existing debt with the placement of over $1 billion in secured senior notes maturing in 2029. The stated medium-term leverage target is 2.0x to 2.5x.

FLUT 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed May 14, 2024. Cited figures are marked; the original filing is the authoritative source.

Flutter Entertainment plc (filing name as shown in the filing) furnished a press release reporting results for the quarter ended March 31, 2024.

Group revenue rose 16% to $3,397 million^a, and Group Adjusted EBITDA increased 46% to $514 million, with Adjusted EBITDA margin expanding 310 basis points to 15.1%. The US segment drove much of the growth: revenue rose 32% to $1,410 million and US Adjusted EBITDA improved to $26 million from negative $53 million a year earlier. The company still recorded a net loss of $177 million, which included a $184 million non-cash loss from the change in fair value of the Fox Option liability and $172 million of acquired intangibles amortization.

Net loss per share was $1.10^b, and adjusted earnings per share was $0.10. Cash generation improved, with net cash provided by operating activities of $337 million (versus negative $49 million a year earlier) and Adjusted Free Cash Flow of $157 million. Total debt decreased to $6,836 million from $7,056 million at December 31, 2023, and the leverage ratio fell to 2.8x from 3.1x.

Management stated it remains confident in its 2024 guidance, which was provided on March 26, 2024, and noted that unfavorable US sports results in the last two weeks of March had no effect on the guidance ranges. The company also disclosed that shareholders approved moving its primary listing to the US, with the change expected to be effective May 31, 2024, and that its operational headquarters moved to New York.

02—Key points

Key Highlights

Group revenue up 16% to $3,397 million; US revenue up 32% to $1,410 million, with US AMPs up 15%
Group Adjusted EBITDA up 46% to $514 million; Adjusted EBITDA margin up 310 basis points to 15.1%
US Adjusted EBITDA of $26 million versus negative $53 million in Q1 2023
Net loss of $177 million, including a $184 million non-cash loss on the Fox Option liability fair value change and $172 million of acquired intangibles amortization
Operating cash flow of $337 million and Adjusted Free Cash Flow of $157 million, compared with negative $49 million and negative $50 million in Q1 2023
Leverage ratio reduced to 2.8x from 3.1x; total debt reduced to $6,836 million from $7,056 million at December 31, 2023
2024 guidance reaffirmed; US primary listing expected to become effective May 31, 2024

03—Questions

Frequently Asked Questions

Did Flutter change its 2024 financial guidance?
No. The company said it remains confident in its financial year 2024 guidance provided on March 26, 2024, despite unfavorable US sports results in the last two weeks of March, and that there is no change to the previously communicated ranges. Guidance midpoints include US revenue of $6.0 billion and US Adjusted EBITDA of $710 million, and Group Ex-US revenue of $7.85 billion and Adjusted EBITDA of $1.73 billion.
Why did the company report a larger net loss despite improved operating performance?
The net loss of $177 million, which was $66 million higher than a year earlier, included non-cash charges of $356 million. These consisted of a $184 million loss from the change in fair value of the Fox Option liability, reflecting a higher valuation of FanDuel, and $172 million of acquired intangibles amortization. The company said the improved financial performance was more than offset by an associated tax charge and the Fox Option fair value change.
How did the US business perform in the quarter?
US revenue increased 32% to $1,410 million, with sportsbook revenue up 30% and iGaming revenue up 49%. US Adjusted EBITDA was $26 million, compared with negative $53 million in Q1 2023, and Adjusted EBITDA margin expanded 680 basis points to 1.8%. The filing states that sports results over the last two weeks of the quarter were 320 basis points, or $76 million, unfavorable.
What changes did the company announce regarding its listing and headquarters?
On May 1, shareholders voted to move Flutter's primary listing to the US. The transition is expected to become effective on May 31, 2024. The company also moved its operational headquarters to New York, reflecting the importance of the US sports betting and iGaming market to its business.
How is the company's balance sheet and debt position evolving?
Total debt decreased to $6,836 million from $7,056 million at December 31, 2023, and net debt was broadly in line at $5,684 million compared with $5,795 million. The leverage ratio improved to 2.8x from 3.1x based on last 12 months Adjusted EBITDA. On April 29, 2024, the company refinanced existing debt with the placement of over $1 billion in secured senior notes maturing in 2029. The stated medium-term leverage target is 2.0x to 2.5x.

04—Continue

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