Flutter Entertainment has showcased a remarkable performance for Q2 2024, reporting a 20% year-on-year revenue increase to $3.61 billion. The company’s net income surged by an impressive 364% to $297 million, reflecting significant operational growth and efficiency. This positive trend is underscored by notable gains in the company’s key financial metrics, including net income margin, average monthly players (AMPs), and diluted earnings per share (EPS).
Revenue and Profitability
In the second quarter of 2024, Flutter Entertainment achieved a revenue of $3.61 billion, marking a solid 20% increase compared to the same period last year. This growth is complemented by a substantial 364% rise in net income, which soared to $297 million from $64 million in Q2 2023. The net income margin also improved significantly, increasing by 610 basis points to 8.2%.
Adjusted EBITDA for the quarter stood at $738 million, reflecting a 17% growth year-on-year. However, there was a slight decline in the adjusted EBITDA margin, which decreased by 70 basis points to 20.4%. Despite this minor drop, the overall profitability of the company remains strong.
Earnings Per Share
Flutter’s diluted earnings per share (EPS) saw a dramatic increase of 290%, rising to $1.45. Adjusted earnings per share also grew substantially, up 56% to $2.61. This notable rise in EPS highlights the company’s effective cost management and revenue growth strategies.
Cash Flow and Financial Health
The company’s financial health improved significantly with net cash provided by operating activities increasing by 688% to $323 million. This substantial growth in cash flow underscores Flutter’s strong operational efficiency and financial stability.
Performance in the United States
In the US market, Flutter’s operations demonstrated robust growth. Average monthly players (AMPs) increased by 27%, and revenue surged by 39%. The company’s FanDuel brand continues to lead the US sportsbook market, holding a dominant 47% share of gross gaming revenue (GGR) and a 51% share of net gaming revenue (NGR).
International Markets
Outside the US, Flutter’s performance was also strong. AMPs grew by 15%, and revenue increased by 10%. The company’s operations in the UK and Ireland benefited from the European Football Championship and continued growth in the iGaming sector. In Italy, Flutter’s Sisal brand achieved a record market share, with AMPs increasing by 25%.
Comparison with Q1 2024 Results
Flutter’s Q2 performance follows a strong Q1, where the company reported a 16% increase in revenue to $3.4 billion, despite a net loss attributed to non-cash charges from the closure of the Fox Bet brand. The US segment was a significant driver of this growth, with revenue increasing by 32%.
Outlook and Guidance
Given the impressive results for Q2 2024, Flutter has updated its full-year guidance. The company now anticipates a 20% increase in group revenue and a 34% rise in adjusted EBITDA at the midpoints. This revised guidance reflects Flutter’s confidence in maintaining its growth trajectory and financial performance.
Stock Performance
Following the strong Q2 results, Flutter’s share price has risen to £161.70, reflecting a 10% increase. This rise in share price, down from an initial 12% increase, highlights investor confidence in the company’s ongoing performance and growth prospects.
Flutter Entertainment’s Q2 2024 results demonstrate a significant leap in revenue, net income, and overall financial health. With robust growth in both US and international markets and a positive outlook for the remainder of the year, Flutter is well-positioned to continue its strong performance and deliver substantial value to its shareholders. The company’s strategic focus on expanding its market share and enhancing operational efficiency is evidently paying off, as reflected in its impressive financial metrics and revised full-year guidance.