Flutter Entertainment has increased its full-year 2024 guidance for the second time this year, following a strong performance in the third quarter. Aiming to expand its presence in North America and launch in Brazil in 2025, the company reported 'excellent Q3 results' globally. Before the period closed in September, Flutter announced the acquisition of NSX Group in Brazil.
During the third quarter earnings call, Flutter CEO Peter Jackson started by calling Q3 "very strong for the group and once again ahead of market expectations". The headline number is a 74% increase in EBITDA to US$ 450 million. It showed a profit of US$ 58 million in the US. The company also raised its revenue and EBITDA guidance by 1%.
According to its financial results, Flutter had a net loss of US$ 114 million for the quarter, but this was an improvement of US$ 148 million from the previous year. Main profits combined in Australia, Britain, and across Europe increased by 24%. Flutter is active globally in sports betting and iGaming.
Jackson also responded to a question about the possibility of entering the Florida market. Earlier this year, Hard Rock International chairman and CEO of Seminole Gaming, Jim Allen, said his company is open to partnerships in the state. The Seminole tribe holds a monopoly on gambling, including sports betting.
“Excited by the great opportunities” in Brazil
Executives responded to questions about other parts of the world, including Australia, Brazil, Italy, and the UK and Ireland (UKI). Many eyes are on Brazil, which aims to launch regulated sports betting on January 1, 2025, although the regulatory and legislative process has not moved as quickly or smoothly as many stakeholders had hoped.
CFO Rob Coldrake said that Flutter is planning a launch on January 1, but "there are several regulatory challenges there at the moment. We are confident with the progress we have made in Brazil... and we are excited to capitalize on what we believe to be a really exciting market with lots of opportunities".
In September, Flutter acquired a 56% stake in the parent company of Betnacional, NSX Group, thus becoming one of the top three betting companies in the country. Along with its Betfair product, Flutter holds an 11% market share.
With the acquisition of NSX, Flutter continued its M&A strategy of buying existing, successful companies which it boosts, but mainly keeps under existing or local management.
Commenting on the results, Peter Jackson said: "Flutter had an excellent quarter, with revenue growth accelerating to 27%, well ahead of market expectations".
He further highlighted Flutter's long-term strategy, emphasizing the company's position as "an 'and' business, with opportunities to deploy capital both organically and through mergers and acquisitions, as seen with the recent acquisitions of Snai (Italy) and NSX (Brazil)".
"We expect to have significant capital to deploy in the coming years and are excited to launch our share buyback program in the fourth quarter", concluded Jackson.
Source: GMB/iGB
