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Flutter Entertainment 8-K Report, Financial Results (Aug 13, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 13, 2024
Period End
August 13, 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 August 13, 2024. Cited figures are marked; the original filing is the authoritative source.

Flutter Entertainment plc filed this Form 8-K under Item 2.02 (Results of Operations and Financial Condition) to furnish its press release, Exhibit 99.1, announcing results for the quarter ended June 30, 2024 and the availability of its second quarter 2024 financial supplement.

The press release reports Group revenue of $3,611 milliona (up 20% year-over-year), net income of $297 million (versus $64 million), Adjusted EBITDA of $738 million (up 17%), and diluted EPS of $1.45 (versus $0.37). Free Cash Flow was $171 million, compared with negative $95 million a year earlier, and the leverage ratio fell to 2.6x from 3.1x at December 31, 2023. US revenue grew 39% to $1,527 million and US Adjusted EBITDA grew 51% to $260 million, while Group Ex-US Adjusted EBITDA rose 4% to $478 million, with Australia's Adjusted EBITDA down 31%.

Management raised full-year 2024 guidance. Group Ex-US guidance now shows revenue of $7.85 billion to $8.15 billionb and Adjusted EBITDA of $1.69 billion to $1.85 billion. US guidance now shows revenue of $6.05 billion to $6.35 billion and Adjusted EBITDA of $680 million to $800 million.

The updated US Adjusted EBITDA guidance includes an estimated gross impact of $50 millionc from Illinois gaming tax changes in the second half, with $40 million net of mitigation. Interest, net is now expected to be approximately $405 million, up from $370 million. The company also noted that its primary listing moved to the NYSE on May 31, 2024, and that it will hold an Investor Day on September 25, 2024.

Balance sheet metrics improved during the quarter. Total debt declined to $6,790 milliond from $7,056 million, and net debt declined to $5,478 million from $5,795 million.

Net cash provided by operating activities was $323 million, versus $41 million in the prior-year quarter. The press release includes non-GAAP measures, and the filing states that a forward-looking reconciliation to GAAP cannot be provided without unreasonable effort.

02—Key points

Key Highlights

  1. Group revenue rose 20% year-over-year to $3,611 million, and average monthly players increased 17% to 14,344 thousand.
  2. US revenue grew 39% to $1,527 million, and US Adjusted EBITDA grew 51% to $260 million, with US Adjusted EBITDA margin up 130 bps.
  3. Net income was $297 million versus $64 million, helped by a $91 million non-cash fair value gain on the Fox Option liability; diluted EPS was $1.45 versus $0.37.
  4. Free Cash Flow was $171 million versus negative $95 million a year earlier, and net cash from operating activities was $323 million.
  5. Full-year 2024 guidance was raised: Group Ex-US Adjusted EBITDA is now $1.69 billion to $1.85 billion, and US Adjusted EBITDA is now $680 million to $800 million.
  6. Leverage ratio declined to 2.6x from 3.1x at December 31, 2023, against a stated medium-term target of 2.0-2.5x.
  7. Australia Adjusted EBITDA fell 31% to $74 million, reflecting a weaker racing market, and the company plans an Investor Day on September 25, 2024.

03—Questions

Frequently Asked Questions

  1. Why did Flutter raise its 2024 guidance?

    The filing says guidance was raised to reflect strong second-quarter performance, the benefit of positive sports results, and continued momentum into the third quarter. Group revenue guidance midpoint now implies 20% year-over-year growth and Adjusted EBITDA guidance midpoint implies 34% growth.

  2. What drove the difference between net income and operating performance in Q2 2024?

    Net income of $297 million included a $91 million non-cash fair value gain on the Fox Option liability and a $147 million charge for amortization of acquired intangibles. The Fox Option gain contributed $0.51 per share to diluted EPS.

  3. What is the potential cost of the Illinois gaming tax increase?

    The filing estimates a gross impact of $50 million in the second half of 2024 from Illinois tax changes, with expected initial mitigation of $10 million, resulting in a net cost of approximately $40 million in 2024. The company expects to mitigate 50% of the cost in 2025 through localized promotional and marketing spend.

  4. How did the balance sheet and cash generation change?

    Total debt decreased to $6,790 million from $7,056 million and net debt decreased to $5,478 million from $5,795 million. The leverage ratio fell to 2.6x from 3.1x, and Free Cash Flow reached $171 million compared with negative $95 million in Q2 2023.

  5. What should investors watch for next?

    The company will hold a Flutter Investor Day in New York on September 25, 2024, where management said it would set out growth potential and capital allocation opportunities. The filing also notes that interest expense, net is now expected to be approximately $405 million, up from $370 million, due to delayed cash pooling interest income benefits.

04—Continue

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