Flutter Entertainment rises on 30% core profit forecast

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Flutter Entertainment rises on 30% core profit forecast
Credit: © Reuters.

Shares of Flutter Entertainment (FLUT) rose more than 2% in premarket trading Tuesday after the company said it anticipates a 30% growth in its core profits for the year, propelled by a significant expansion in its U.S. operations.

This performance aligns with market expectations, according to analysts at Jefferies.

The company forecasts its U.S. core profits to reach between $635 million and $785 million, up from $167 million last year, marking its first profitable year in the U.S. following the 2018 lift of the sports betting ban.

Internationally, Flutter projects core profits ranging from $1.63 billion to $1.83 billion, compared to $1.71 billion in 2023, meeting its previous forecasts.

Flutter has set its full-year 2024 guidance, indicating an expected increase in Group revenue by 17.5% and a rise in Further Adjusted EBITDA by 30.2% at the midpoint of forecasts.

Specifically, the company projects U.S. revenue to be between $5.8 billion and $6.2 billion, representing a year-on-year growth of approximately 36.3% at the midpoint.

The firm, which detailed its fourth-quarter revenue earlier in January, reported a 23% increase in group revenue for the first 11 weeks of 2024, with a notable 56% rise in the U.S., fueled by record engagement during February's Super Bowl.

For the full fiscal 2023, Flutter reported a net loss per share of $6.89 on revenue of $11.79 billion.

Revenue trends show a 3% increase in Flutter's international segment and a 17% rise in the UK and Ireland, boosting its market share to 30%. However, Australian revenue dropped by 8.8%, with expectations of further profitability challenges due to market and regulatory pressures.

“Flutter delivered a strong 2023 performance as we continued to deliver on our strategy,” said CEO Peter Jackson.

“This was underpinned by a localized approach to technology and product coupled with the unique scale advantages of the Flutter Edge. As anticipated, our number one position in the US has transformed the Group's earnings profile during 2023 as FanDuel delivered a positive US full year Adjusted EBITDA for the first time.”

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