In This Article:
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Net Income Growth: 289% year-over-year increase in Q1.
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Adjusted EBITDA Growth: 20% year-over-year increase in Q1.
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Group Revenue Increase: 8% growth in Q1.
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Earnings Per Share: Increased to $1.57 from a loss of $1.10.
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US Revenue Growth: 18% year-over-year increase.
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Sportsbook Growth: 15% increase despite adverse March Madness outcomes.
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iGaming Growth: 32% increase in the US.
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Adjusted EBITDA (US): $161 million, more than 5 times higher than the prior year.
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International Revenue: $2 billion with constant currency growth of 3%.
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International Adjusted EBITDA: $518 million with constant currency growth of 2%.
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Net Cash from Operating Activities: Reduced by 44% year-over-year.
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Free Cash Flow: Reduced by 52% year-over-year.
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Available Cash: Approximately $1.5 billion, unchanged quarter-on-quarter.
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Net Debt: $5.3 billion with a leverage ratio of 2.2 times.
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Share Repurchase Program: 891,000 shares repurchased for $230 million in Q1.
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2025 Revenue Guidance: Expected to be $17.08 billion at the midpoint.
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2025 Adjusted EBITDA Guidance: Expected to be $3.18 billion for the year.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Flutter Entertainment PLC (NYSE:FLUT) reported a significant year-over-year net income growth of 289% and adjusted EBITDA growth of 20% in Q1 2025.
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The company's US business is driving a step change in earnings, with AMPs growing to more than 4.3 million in the quarter.
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Flutter's international business demonstrated strong performances, particularly in SEA and India, contributing to overall revenue growth.
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The acquisition of SNAI in Italy is expected to rapidly realize operational and financial benefits, enhancing Flutter's scale in the region.
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Flutter's proprietary pricing capability continues to drive market-leading sportsbook products, with a structural gross revenue margin progression reaching 14.1% in the quarter.
Negative Points
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Basketball handle growth was lower than anticipated, impacting overall sports betting performance.
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The company faced challenges in Brazil due to regulatory changes, affecting customer activation and registration processes.
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US sports results were customer-friendly in Q1, driven by an unprecedented number of winning favorites during March Madness, impacting revenue.
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Net cash from operating activities decreased by 44%, and free cash flow reduced by 52% year-over-year, impacted by a decrease in player deposit liabilities.
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The company is facing structural challenges in the Australian racing industry, affecting racing handle trends.