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Flutter Entertainment PLC (FLUT)
NYSE:FLUT
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Flutter Entertainment PLC
(NYSE:FLUT)
Rating:71Outperform
Price Target:
$305.00
▲(6.52%Upside)
Positive Factors
Market Position
Flutter Entertainment continues to demonstrate strong operational momentum, particularly in the U.S., where underlying engagement and structural margin trends remain healthy.
Revenue Growth
The strong growth profile allows Flutter to invest in organic growth and return up to $5 billion of capital to shareholders over the next three years.
Negative Factors
Competition
FLUT faces significant competition from regulated and unregulated gambling operators and other forms of entertainment, which may impact its market share.
Taxation
The new transaction tax will push DKNG and FLUT's effective tax rate in the state over 50%, which materially hurts their margin in the state.
Flutter Entertainment PLC (FLUT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
£50.40B
Dividend YieldN/A
Average Volume (3M)3.31M
Price to Earnings (P/E)99.0
Beta (1Y)1.41
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees27,345
SectorConsumer Cyclical
Sector Strength57
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)1.59
Shares Outstanding176,687,870
10 Day Avg. Volume3,855,360
30 Day Avg. Volume3,307,865
Financial Highlights & Ratios
PEG Ratio1.03
Price to Book (P/B)1.93
Price to Sales (P/S)0.00
P/FCF Ratio42.73
Enterprise Value/Market Cap0.19
Enterprise Value/Revenue0.18
Enterprise Value/Gross Profit1.41
Enterprise Value/Ebitda1.45
Forecast
1Y Price Target
£302.74Price Target Upside5.73% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
Flutter Entertainment PLC Business Overview & Revenue Model
Company DescriptionFlutter Entertainment plc operates as a sports betting and gaming company in the United Kingdom, Ireland, Australia, the United States, and internationally. The company operates through four segments: UK & Ireland, Australia, International, and US. It offers sportsbooks and exchange sports betting products, daily fantasy sports products, and pari-mutuel betting products; fixed odds games betting products; online games and casinos; lottery; peer-to-peer games, including online bingo, rummy, and poker; and business-to-business services. In addition, the company operates HRTV, a horseracing television network. Further, it provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, adjarabet.com, pokerstars.com, Skybet.com, tombola.com, and sisal.com websites under the FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, tombola, Betfair, FOX Bet, TVG, Stardust, Junglee Games, and Adjarabet brands, as well as live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in 2019. The company was incorporated in 1958 and is headquartered in Dublin, Ireland.
How the Company Makes MoneyFlutter Entertainment PLC generates revenue primarily through its sports betting and gaming operations. The company's key revenue streams include online and retail sports betting, online gaming services such as casino and poker, and daily fantasy sports. Flutter leverages its portfolio of popular brands to attract a wide customer base, providing them with betting options on a variety of sports and gaming events. The company's strategic partnerships and acquisitions, such as the merger with The Stars Group, have expanded its market reach and product offerings, further enhancing its revenue potential. Flutter also benefits from its strong presence in regulated markets, ensuring compliance and sustainable growth across its global operations.
Flutter Entertainment PLC Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 18.14%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call exhibited a largely positive outlook with significant growth in net income, strong international performance, and successful strategic acquisitions. However, challenges in the basketball handle and adverse sports results in the U.S. were noted as concerns. Overall, the highlights outweigh the lowlights, indicating a positive sentiment.Q1-2025 Updates
Positive Updates
Strong U.S. Business Performance
The scaling of the U.S. business drove a step change in the earnings profile with AMPs growing to more than 4.3 million in the quarter and sportsbook handle growth in line with expectations.
Significant International Growth
International business showed strong performance, especially in SEA and India, with year-over-year revenue growth of 3% constant currency and strong growth in Turkey.
Record Net Income and Adjusted EBITDA Growth
Net income and adjusted EBITDA increased by 289% and 20% year-over-year, respectively, driven by U.S. business transformation and international diversification.
Successful Acquisition of Snai
Completed acquisition of Snai, significantly adding to scale in Italy with expected rapid realization of operational and financial benefits.
iGaming Milestone
FanDuel iGaming proposition hit 1 million AMPs for the first time, supporting a strong leadership position with a 48% net gaming revenue sportsbook share.
Negative Updates
Basketball Handle Softness
Basketball handle growth was lower than anticipated, attributed to less competitive matchups and larger spreads.
Challenges in Brazil
Growth in Brazil was materially negative due to regulatory changes impacting customer sign-ups, although some improvement in ARPU was noted.
Adverse U.S. Sports Results Impact
Unfavorable U.S. sports results, particularly during March Madness, impacted financials with year-to-date adverse results affecting $280 million in revenue and $180 million in adjusted EBITDA.
Company Guidance
In the first quarter of 2025, Flutter Entertainment reported a robust performance with significant year-over-year growth in key financial metrics. The company achieved a 289% increase in net income and a 20% rise in adjusted EBITDA. Group revenue grew by 8%, driven by strong performances in the U.S. and international markets, particularly in SEA and India. In the U.S., revenue was up 18%, with a notable 32% growth in iGaming. The company's adjusted EBITDA reached $161 million, marking a more than fivefold increase from the previous year, demonstrating significant operating leverage. Flutter's proprietary pricing capability has enabled a structural gross revenue margin progression to 14.1%. Despite some challenges in basketball handle growth, other areas like NFL and MLB showed encouraging trends. The company maintained its full-year guidance for 2025, with expectations of $17.08 billion in revenue and $3.18 billion in adjusted EBITDA, reflecting 22% and 35% growth, respectively. Additionally, Flutter's strategic initiatives, such as the acquisition of Snai and advancements in their Your Way pricing technology, are expected to drive long-term innovation and value creation across their U.S. and international markets.Flutter Entertainment PLC Financial Statement Overview
Summary
Flutter Entertainment PLC demonstrates strong revenue growth and cash generation capabilities, but struggles with profitability and increasing leverage. The company has made operational improvements, as seen in its EBIT and EBITDA margins, and maintains a strong equity base. Future focus should be on turning revenue growth into sustainable profitability and managing debt levels.Income Statement
Flutter Entertainment PLC has shown impressive revenue growth, increasing from $2.83 billion in 2019 to $14.05 billion in 2024. However, the company has faced challenges with profitability, recording net losses over the past few years, including a $130 million loss in 2024. While gross profit margins have improved, net profit margins remain negative. The company has improved its EBIT and EBITDA margins in 2024, which reflects operational improvements.60
Neutral
Balance Sheet
The company's financial position shows a stable equity base with stockholders' equity at $9.29 billion in 2024. The debt-to-equity ratio has increased over the years, indicating rising leverage, which poses potential risks. However, the equity ratio remains strong, reflecting a solid asset base relative to equity. Return on equity is currently negative due to net losses.65
Positive
Cash Flow
Operating cash flow has been consistently positive, reflecting strong cash generation capabilities, with $1.6 billion in 2024. Free cash flow has also shown significant growth, indicating improved cash management. The ratio of operating cash flow to net income highlights operational efficiency, despite net losses.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.32B | 14.05B | 11.79B | 9.46B | 8.31B | 6.04B |
| Gross Profit | 6.81B | 6.70B | 5.59B | 4.65B | 4.43B | 3.93B |
| EBITDA | 2.00B | 1.61B | 653.00M | 987.00M | 561.00M | 1.18B |
| Net Income | 620.00M | 109.00M | -1.22B | -432.00M | -923.00M | 51.83M |
Balance Sheet | ||||||
| Total Assets | 24.82B | 24.51B | 24.64B | 24.77B | 22.68B | 23.23B |
| Cash, Cash Equivalents and Short-Term Investments | 3.47B | 3.59B | 3.42B | 2.70B | 2.31B | 1.74B |
| Total Debt | 7.39B | 7.28B | 7.53B | 7.24B | 5.19B | 4.52B |
| Total Liabilities | 13.05B | 13.24B | 13.27B | 12.27B | 8.77B | 8.20B |
| Stockholders Equity | 9.86B | 9.29B | 10.04B | 12.35B | 13.86B | 14.99B |
Cash Flow | ||||||
| Free Cash Flow | 843.83M | 941.00M | 344.10M | 558.14M | 339.44M | 920.64M |
| Operating Cash Flow | 1.45B | 1.60B | 937.00M | 1.03B | 736.87M | 1.21B |
| Investing Cash Flow | -652.00M | -811.00M | -602.00M | -2.76B | -324.97M | -1.79B |
| Financing Cash Flow | -559.00M | -469.00M | -113.00M | 1.87B | 79.35M | 1.24B |
Flutter Entertainment PLC Technical Analysis
Positive
286.33
Price Trends
257.07
Positive
250.82
Positive
252.46
Positive
Market Momentum
8.55
Negative
66.01
Neutral
85.62
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUT, the sentiment is Positive. The current price of 286.33 is above the 20-day moving average (MA) of 275.17, above the 50-day MA of 257.07, and above the 200-day MA of 252.46, indicating a bullish trend. The MACD of 8.55 indicates Negative momentum. The RSI at 66.01 is Neutral, neither overbought nor oversold. The STOCH value of 85.62 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FLUT.
Flutter Entertainment PLC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $8.34B | 26.76 | 46.19% | ― | 7.26% | 54.83% | |
72 Outperform | $3.54B | 201.03 | 11.87% | ― | 29.86% | ― | |
72 Outperform | $5.72B | 41.27 | 21.19% | 1.40% | 22.80% | 281.38% | |
71 Outperform | £50.40B | 98.95 | 5.48% | ― | ― | ― | |
65 Neutral | $37.65B | ― | -46.78% | ― | 22.86% | 30.40% | |
64 Neutral | £1.70B | 10.48 | 6.12% | 260.21% | 0.58% | -32.48% | |
61 Neutral | $2.76B | ― | -2.81% | ― | 5.51% | 92.46% |
* Consumer Cyclical Sector Average
Performance Comparison
FLUT
Flutter Entertainment PLC
286.33
82.86
40.72%
PENN
Penn National Gaming
18.46
-2.31
-11.12%
LNW
Light & Wonder
101.11
-5.71
-5.35%
DKNG
DraftKings
42.80
5.65
15.21%
RSI
Rush Street Interactive
15.56
6.73
76.22%
SGHC
Super Group (SGHC)
11.99
8.64
257.91%
Flutter Entertainment PLC Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Flutter Entertainment Aligns Shares with UK Regulations
Neutral
Oct 30, 2024
Flutter Entertainment plc announced a block listing application for its ordinary shares to align with UK regulatory requirements. This move involves their Deferred Share Incentive Plan and other schemes, adjusting the balance of unissued shares through a regular update. Key figures include an increase and allotment of shares under various incentive plans, showcasing active management of their equity incentives.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.