NEW YORK - Flutter Entertainment PLC (NYSE:FLUT; LSE:FLTR), a global leader in online sports betting and iGaming, has announced revised financial expectations for its US operations following a period of customer-friendly outcomes in sports betting, particularly in NFL Parlay and Same Game Parlay bets. Despite the strong momentum of US players, the company experienced a significant impact on its Q4 2024 trading due to the most favorable season for customers in nearly two decades.
As a result of these outcomes, Flutter now estimates an adverse impact on gross gaming revenue (GGR) of $438 million, with revenue and Adjusted EBITDA reductions of approximately $390 million and $260 million, respectively, for the period from November 12 to December 31, 2024. Consequently, the company's US revenue for 2024 is expected to be about $370 million lower than the previous guidance midpoint, totaling around $5.78 billion. The US Adjusted EBITDA forecast has also been adjusted to approximately $505 million, which is $205 million below the earlier guidance midpoint.
The revised expectations for Q4 US revenue and Adjusted EBITDA stand at approximately $1.59 billion and $161 million, respectively. These figures reflect an estimated Q4 sports results impact totaling $643 million in GGR, $550 million in revenue, and $360 million in Adjusted EBITDA.
Despite these setbacks in the US, the company has seen continued positive momentum in the UK and Ireland, particularly with favorable sports results in the English Premier League. This has led to an estimated increase of about 1% in revenue and 2% in Adjusted EBITDA for the Group Ex-US compared to the mid-points of their previous guidance.
Flutter has emphasized that the short-term results do not affect the long-term growth trajectory and underlying assumptions set out during their Investor Day. A detailed update is expected to be provided during their scheduled Q4 earnings release on March 4, 2025.
These financial estimates are preliminary and subject to change upon completion of financial reporting processes. Flutter's independent registered public accounting firm has not audited or reviewed these preliminary figures. Investors are cautioned against relying solely on this preliminary financial information.
This article is based on a press release statement from Flutter Entertainment.
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