01—Abstract
Summary
Summary of the 8-K filed November 12, 2024. Cited figures are marked; the original filing is the authoritative source.
Flutter Entertainment plc furnished this Form 8-K under Item 2.02 to announce its financial results for the quarter ended September 30, 2024, with the full results and third-quarter 2024 financial supplement provided in Exhibit 99.1.
Group revenue rose 27% year-over-year to $3,248 million, and the net loss narrowed to $114 milliona from $262 million, which includes a $121 million non-cash fair value loss on the Fox Option liability. Group Adjusted EBITDA increased 74% to $450 million, with Adjusted EBITDA margin at 13.9%. US revenue grew 51% to $1,250 million, while Group Ex-US revenue grew 15% to $1,998 million.
Net cash provided by operating activities fell 48% to $290 millionb, and Free Cash Flow was $112 million, reflecting derivative settlements. The company raised its full-year 2024 Group revenue and Adjusted EBITDA guidance by about 1%, with Group Ex-US guidance increased and US guidance narrowed to a lower midpoint. Management stated that strong US performance in Q3 has since been more than offset by unfavorable sports results in Q4 to date.
Leverage fell to 2.4x from 3.1x at December 31, 2023, within the company's medium-term target of 2.0-2.5x. The Board has authorized a share repurchase program of up to $5 billionc over three to four years, with a first tranche of up to $350 million launching November 14, 2024, and repurchases intended through the end of Q1 2025. The filing also notes pending acquisitions of NSX and Snai, expected to complete by Q2 2025.
02—Key points
Key Highlights
- Group revenue of $3,248 million, up 27% year-over-year, with US revenue up 51% to $1,250 million and Group Ex-US revenue up 15% to $1,998 million.
- Net loss narrowed to $114 million from $262 million, including a $121 million non-cash fair value loss on the Fox Option liability and $128 million of acquired intangibles amortization.
- Group Adjusted EBITDA rose 74% to $450 million, with Adjusted EBITDA margin of 13.9%, up 380 basis points.
- Full-year 2024 Group revenue and Adjusted EBITDA guidance raised by about 1%; US midpoints lowered, with Q4 sports results to date described as unfavorable.
- Net cash provided by operating activities decreased 48% to $290 million, and Free Cash Flow was $112 million, primarily due to derivative settlements.
- Leverage ratio declined to 2.4x from 3.1x at December 31, 2023, within the 2.0-2.5x medium-term target.
- Share repurchase program of up to $5 billion over three to four years begins November 14, 2024, with up to $350 million to be repurchased through the end of Q1 2025.
03—Questions
Frequently Asked Questions
How did Flutter perform in the US segment in Q3 2024?
US revenue grew 51% to $1,250 million, driven by sportsbook revenue up 62% and iGaming revenue up 46%. US Adjusted EBITDA improved to $58 million from a loss of $55 million in Q3 2023, and the filing cites favorable sports results and operating leverage.
Why did the full-year guidance for the US segment change?
The US revenue and Adjusted EBITDA guidance ranges were narrowed, with midpoints lowered 1% for revenue to $6.15 billion and 4% for Adjusted EBITDA to $710 million. The company said positive Q3 performance has been more than offset by unfavorable sports results in Q4 to date.
What is the status of the share repurchase program?
The Board authorized up to $5 billion of repurchases to be deployed over three to four years. The first tranche launches November 14, 2024 on the New York Stock Exchange, with up to $350 million of ordinary shares to be repurchased through the end of Q1 2025.
What drove the net loss and the change in cash flow?
The net loss included a $121 million fair value loss on the Fox Option liability and $128 million of acquired intangibles amortization. Operating cash flow fell 48% to $290 million, mainly because of a $213 million payment on derivative settlements compared with an $89 million receipt in the prior-year period.
04—Continue