- Q3 sales and profit beat
- Full year profit guidance raised
- New $5 billion share buyback
Leading gaming and betting firm Flutter Entertainment (FLTR) jumped 4% to an all-time high of £201 after revealing third quarter earnings ahead of analysts’ expectations, raising guidance and announcing a $5 billion share buyback.
The shares have surged 46% this year, trouncing Ladbrokes owner Entain (ENT) and William Hill owner Evoke (EVOK), whose shares are down 22% and 34% respectively. Flutter moved its main share listing to the US in 2024 and is no longer a member of any UK indices.
Third quarter revenue was up 27% to $3.25 billion driven by a 16% increase in average monthly players to just under 13 million.
Adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) increased 74% year-on-year to $450 million, representing a 21% beat versus consensus. Full year revenue and EBITDA guidance was nudged-up by 1%.
The improvement now implies revenue up 22% on the prior year and adjusted EBITDA growth of 35% at the mid-point of the range.
WHAT DID THE COMPANY SAY?
CEO Peter Jackson commented: ‘Flutter had an excellent quarter with revenue growth accelerating to 27%, well ahead of market expectations, and increases to our revenue and adjusted EBITDA guidance for 2024.
‘In the US, we had a fantastic start to the new NFL season with peak wagers per minute already higher than Super Bowl LVII. Outside of the US, all divisions delivered a strong performance in the quarter as they leveraged the benefits of the Flutter Edge.
‘In the UK and Ireland, a broader product range across both sports and iGaming drove player and revenue growth. Sisal continued to make significant share gains in Italy as we look to expand our presence there with the addition of Snai. In Australia, Sportsbet has been demonstrating encouraging trends.’
Flutter announced a share buyback of up to $5 billion over the next three to four years beginning on 14 November when the company intends to buy up to $350 million shares by the end of the first quarter of 2025.
