Q3 Earnings Exceed Expectations, Stock Repurchase Marks Milestone for Flutter
Flutter Entertainment, the global leader in sports betting and igaming, reported a strong third-quarter performance, surpassing market expectations, and announced a significant milestone with its first-ever stock buyback. CEO Peter Jackson expressed his satisfaction with the company’s results during a November 12 earnings call, highlighting continued growth, robust customer economics, and an encouraging outlook for the future.
On the heels of the positive earnings report, Flutter revealed that it will initiate a stock repurchase program, purchasing up to $350 million in shares. This marks the first of multiple tranches, signaling Flutter’s strong financial position and commitment to delivering value to shareholders. The buyback will begin on November 14, 2024.
Strong Quarter Performance Across Multiple Markets
Flutter’s third-quarter performance showed notable growth, particularly in the U.S. and the U.K. markets. Jackson praised the results, calling the quarter “excellent” and emphasizing that the business is poised for further expansion.
“We’re ahead of market expectations, and the business is very well-positioned for growth,” Jackson said during the call. “Customer economics have also remained compelling, and we’re seeing strong demand for our products.”
Flutter’s growth in the U.S. was especially notable, driven by strong sports betting results and a 46% growth in igaming. CFO Rob Coldrake confirmed that U.S. performance “exceeded our expectations,” with positive outcomes in sports betting further boosting Flutter’s position in the market.
Jackson also celebrated the passage of sports betting legislation in Missouri, which is expected to go live in 2025. The approval of Amendment 2 was a victory for the company, which now anticipates new opportunities for growth in the state. “We’re very pleased that the legislation passed, even if by a narrow margin,” Jackson remarked, adding that the Missouri market represents a promising opportunity as it comes online next summer.
Regional Markets Show Varied Results
While the U.S. market exceeded expectations, Flutter also reported mixed results across its other international markets. In the U.K., the company saw strong growth in both sports betting and igaming, particularly with a 102% increase in single-game parlays. This growth highlights the continuing demand for sports betting products in the region, a trend that Flutter has been able to capitalize on.
However, in Australia, the performance was less stellar. The company’s horse racing market saw an 8% decline, although Jackson noted that the outlook for the Australian market remains “encouraging.” The company plans to continue focusing on improving customer experiences and enhancing its offerings in the region.
Regarding the U.K. government’s White Paper on gambling, which has been in the works since the administration of Prime Minister Rishi Sunak, Flutter is cautious but optimistic. Jackson confirmed that Flutter is in the early stages of a multi-year consultation with the U.K. government and that they are proceeding according to the guidance previously given. There has been little impact on Flutter’s operations in the country to date.
Looking Ahead: Continued Momentum and Stock Buyback
Flutter’s financial guidance for the remainder of the year reflects strong momentum across all markets. Coldrake forecasted full-year revenues of approximately $6.1 billion in the U.S. and an additional $8.2 billion from its global operations. These figures point to continued growth and solid performance across Flutter’s diverse portfolio.
The announcement of the stock repurchase underscores the company’s confidence in its future. With cash flow from operations remaining robust, Flutter sees this buyback program as a way to return value to shareholders while reinforcing its financial stability. The decision reflects the company’s belief that its stock is undervalued and that now is the right time to invest in its own future.
Despite the solid performance, Flutter remains committed to a competitive approach. Coldrake explained that the company’s promotional strategy, especially for its U.S. sports betting brand FanDuel, continues to prioritize customer engagement and loyalty. “We’re doing well with our market payback and generosity,” Coldrake said. “There’s no need to change our strategy as we move forward.”
As Flutter continues to grow and diversify its offerings, the company’s future looks promising. The combination of strong regional growth, new market opportunities, and its first stock buyback all point to a bright future for the global gaming and sports betting giant.
