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Flutter Entertainment PLC (FLUT)
NYSE:FLUT
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Flutter Entertainment PLC
(NYSE:FLUT)
60Neutral
Positive Factors
Earnings Transformation
The company achieved significant earnings transformation, with AEBITDA increasing 26%, driven by the rapid scaling of its U.S. business.
Growth Prospects
Guided revenue growth of 20% to 25% in the U.S. market, with significant margin expansion expected, demonstrates strong growth prospects.
Market Leadership
Flutter continues to demonstrate clear market leadership in U.S. online sports betting and iGaming, supported by disciplined customer acquisition, high retention, and a structurally advantaged margin profile driven by innovations like Your Way.
Negative Factors
Adverse Sports Results
Adverse sports results during March Madness prompt a cut in 1Q25 revenue to $1.8bn.
Decline in Sportsbook Hold
Flutter’s Q1 performance was negatively impacted by a sharp decline in sportsbook hold during the final reported week of March.
Share Price Decline
Flutter shares are down 30% from mid-February highs, which is attributable to broader 'risk off' of US exposed/growth/tech names and fears around consumer discretionary spending.
Flutter Entertainment PLC (FLUT) vs. S&P 500 (SPY)
Market Cap
£40.96B
Dividend YieldN/A
Average Volume (3M)3.15M
Price to Earnings (P/E)1052.5
Beta (1Y)1.45
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees27,345
SectorConsumer Cyclical
Sector Strength67
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)2.94
Shares Outstanding176,740,040
10 Day Avg. Volume3,558,064
30 Day Avg. Volume3,147,586
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.01
Price to Cash Flow (P/CF)16.50
P/FCF Ratio16.80
Enterprise Value/Market Cap1.17
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit7.15
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£313.91Price Target Upside31.55% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
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; peer-to-peer games, including online bingo, rummy, and poker; and business-to-business services. The company also operates HRTV, a horseracing television network, as well as offers treasury; risk management; and horse racing broadcasting and advanced deposit wagering services. It provides sports betting and gaming services through paddypower.com, betfair.com, sportsbet.com.au, tvg.com, us.betfair.com, fanduel.com, pokerstars.com, Skybet.com, tombola.com, and adjarabet.com websites under the Paddy Power, Betfair, Sportsbet, TVG, FanDuel, Sky Betting & Gaming, PokerStars, Tombola, and Adjarabet brands, as well as BetStars, Sky Bet, Sky Vegas, FOX Bet, Stardust, Sky Bingo, and Junglee Games brands; and betting shops, and live poker tours and events. The company was formerly known as Paddy Power Betfair plc and changed its name to Flutter Entertainment plc in May 2019. Flutter Entertainment plc 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 Financial Statement Overview
Summary
Flutter Entertainment PLC shows strong revenue growth and cash generation, but faces profitability challenges and rising leverage. Operational improvements are seen in EBIT and EBITDA margins, and the company maintains a strong equity base. Focus needed on sustainable profitability and debt management.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 14.05B | 11.79B | 9.46B | 8.31B | 6.04B | Gross Profit |
| 6.70B | 5.59B | 4.65B | 4.43B | 3.93B | EBIT |
| 869.00M | -549.00M | -88.00M | -449.00M | 141.54M | EBITDA |
| 1.60B | 653.00M | 987.00M | 561.00M | 1.18B | Net Income Common Stockholders |
| 109.00M | -1.22B | -432.00M | -923.00M | 51.83M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.58B | 3.42B | 2.70B | 2.31B | 1.74B | Total Assets |
| 24.51B | 24.64B | 24.77B | 22.68B | 23.23B | Total Debt |
| 7.28B | 7.53B | 7.24B | 5.19B | 4.52B | Net Debt |
| 5.70B | 4.28B | 4.71B | 2.98B | 2.89B | Total Liabilities |
| 13.24B | 13.27B | 12.27B | 8.77B | 8.20B | Stockholders Equity |
| 9.29B | 10.04B | 12.35B | 13.86B | 14.99B |
| Cash Flow | Free Cash Flow | |||
| 941.00M | 344.10M | 558.14M | 339.44M | 920.64M | Operating Cash Flow |
| 1.60B | 937.00M | 1.03B | 736.87M | 1.21B | Investing Cash Flow |
| -811.00M | -602.00M | -2.76B | -324.97M | -1.79B | Financing Cash Flow |
| -469.00M | -113.00M | 1.87B | 79.35M | 1.24B |
Flutter Entertainment PLC Technical Analysis
Neutral
238.62
Price Trends
243.62
Negative
255.20
Negative
239.60
Negative
Market Momentum
-2.07
Negative
52.40
Neutral
76.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FLUT, the sentiment is Neutral. The current price of 238.62 is above the 20-day moving average (MA) of 225.93, below the 50-day MA of 243.62, and below the 200-day MA of 239.60, indicating a neutral trend. The MACD of -2.07 indicates Negative momentum. The RSI at 52.40 is Neutral, neither overbought nor oversold. The STOCH value of 76.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FLUT.
Flutter Entertainment PLC Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.52B | 28.75 | 21.14% | 3.63% | 18.10% | ― | |
68 Neutral | $7.15B | 22.98 | 47.97% | ― | 9.82% | 109.44% | |
68 Neutral | $2.80B | 612.00 | 3.61% | ― | 33.70% | ― | |
60 Neutral | $6.86B | 11.74 | 3.14% | 4.15% | 2.37% | -21.95% | |
60 Neutral | £40.96B | 1,052.50 | -1.40% | ― | ― | ― | |
58 Neutral | $30.56B | ― | -54.81% | ― | 30.07% | 39.93% | |
42 Neutral | $2.42B | ― | -10.27% | ― | 3.38% | 38.18% |
* Consumer Cyclical Sector Average
Performance Comparison
FLUT
Flutter Entertainment PLC
238.62
48.86
25.75%
PENN
Penn National Gaming
15.71
-0.73
-4.44%
LNW
Light & Wonder
85.08
-4.92
-5.47%
DKNG
DraftKings
33.22
-8.60
-20.56%
RSI
Rush Street Interactive
12.36
5.94
92.52%
SGHC
Super Group (SGHC)
8.13
5.06
164.82%
Flutter Entertainment PLC Earnings Call Summary
Earnings Call Date:Mar 04, 2025
(Q4-2024)
| % Change Since: -10.34%|
Next Earnings Date:May 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a strong financial performance with significant growth in both revenue and market share, particularly in the U.S. and international markets. However, challenges such as adverse sports results and regulatory concerns were noted. The sentiment is balanced with strong highlights but notable lowlights.Q4-2024 Updates
Positive Updates
Strong Financial Performance
Flutter reported a revenue growth of 19% and adjusted EBITDA increased by 26% in 2024. The net income was $156 million, and earnings per share increased by $5.59 to $0.45 in Q4.
U.S. Market Leadership
Flutter maintained its number 1 position in the U.S. online sportsbook market with a GGR market share of 43% and became the number 1 iGaming operator with a 26% market share.
Successful International Expansion
Significant progress was made in international markets, including the successful launch of FanDuel in North Carolina and Vermont, and the acquisition of MaxBet.
Innovative Product Development
The introduction of the Flutter Edge and further product innovations like the Same Game Parlay and FanDuel Reward Machine drove strong customer engagement and growth.
Negative Updates
Adverse Sports Results Impact
Customer-friendly NFL results led to a significant adverse impact on Q4 sports results, costing approximately $550 million in revenue and $360 million of adjusted EBITDA.
Challenges in Australia
The Australian market faced challenges with an 8% decline in revenue, attributed to softness in the racing market.
Regulatory Challenges and Tax Increases
Potential state gaming tax increases in the U.S. were highlighted as a concern, with ongoing efforts to mitigate impacts.
Company Guidance
In the recent earnings call, Flutter provided guidance for 2025, highlighting significant achievements and strategic plans. The company reported a 19% revenue growth and a 26% increase in adjusted EBITDA to $482 million for 2024. In the U.S., Flutter maintained a sportsbook GGR market share of 43% and an iGaming GGR market share of 26%, solidifying its position as the leading online sportsbook and iGaming operator. For 2025, Flutter anticipates U.S. revenue and adjusted EBITDA midpoints of $7.72 billion and $1.4 billion, respectively, representing substantial year-over-year growth. The company plans to continue organic investments and acquisitions, including the Snai and NSX acquisitions, and expects up to $1 billion in share repurchases. Flutter's strategic focus on product innovation and disciplined customer acquisition is expected to drive further market leadership and shareholder value.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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.