​
Flutter Entertainment Releases First Quarter 2024 Financial
Results
May 14, 2024: Flutter Entertainment (NYSE:FLUT; LSE:FLTR), the
world's leading online sports betting and iGaming operator, today
announced results for Q1 20241.
Key
financial highlights:
|
In
$ millions except percentages and average monthly
players
|
Three months
ended March
31
|
2024
|
2023
|
YOY
|
|
|
|
|
|
|
Average monthly players (AMPs)
('000s)2
|
13,722
|
12,349
|
+11%
|
|
Revenue
|
3,397
|
2,918
|
+16%
|
|
Net loss
|
(177)
|
(111)
|
(59%)
|
|
Adjusted EBITDA 3,4
|
514
|
352
|
+46%
|
|
Adjusted EBITDA Margin 3
|
15.1%
|
12.1%
|
+310bps
|
|
Net loss per share
($)
|
(1.10)
|
(0.58)
|
(92%)
|
|
Adjusted earnings per share
($)3
|
0.10
|
0.69
|
(85%)
|
|
Net cash provided by/(used in)
operating activities
|
337
|
(49)
|
|
|
Adjusted Free Cash
Flow 3
|
157
|
(50)
|
|
|
Leverage ratio (December 2023
3.1x)3,4
|
2.8x
|
|
|
|
·
Group strategy delivering continued strong growth
with revenue +16%
· US produced another excellent quarter;
AMPs2 +15% and revenue +32%, despite unfavorable sports results in
the second half of March:
‒ FanDuel #1
brand in both sportsbook (net gaming revenue (NGR) share 52%; gross
gaming revenue (GGR) share 46%) and iGaming (record GGR share of
27%) in Q1 20245
‒ Very successful launch in North Carolina with 5.3% adult
population signed up to FanDuel in first 45 days; new player
acquisition in pre-2022 states +12%; projected payback in line with
historic trends6
‒ Product
enhancements driving iGaming player (AMPs2 +34%) and revenue (+49%)
growth
‒ FanDuel a founding member of the Responsible Online Gaming
Association (ROGA)
· Group Ex-US AMPs2
+10% and revenue +8% benefitting from strong
performance in iGaming (revenue +15%) and the acquisition of MaxBet
in January:
‒
Improved iGaming cross-sell rates in UKI driven by
product improvements
‒ In International, Sisal delivered market share gains in Italy,
with iGaming performance mitigating the impact of unfavorable
sports results
·
US primary listing expected to become effective on
May 31, 2024
Q1
2024 financial overview
·
Net loss of $177m, $66m higher year on year, after
non-cash charges of $356m due to (i) $172m acquired intangibles
amortization; and (ii) $184m (Q1 2023 $64m) fair value change in
Fox Option liability
·
Group Adjusted EBITDA3 of $514m, +46%:
‒ US
Adjusted EBITDA3 of $26m (Q1 2023 -$53m), driven by
strong revenue growth and significant operating leverage;
Adjusted EBITDA margin3 +680bps, despite
continued disciplined US player acquisition
investment
‒ Group Ex-US Adjusted EBITDA3 of $488m +20%,
reflecting increased revenue and Adjusted EBITDA margin3
expansion of 260bps, primarily driven by sales and marketing
leverage and a one-off credit from the
settlement of historic litigation
· Group's financial growth algorithm driving Adjusted
EBITDA Margin3
accretion, +310bps to 15.1%
· Net loss per share and adjusted earnings per share decreases
of $0.52 and $0.59 primarily due to the Fox Option charge (-$1.04),
offsetting improved financial performance
· Net
cash provided by operating activities increased $386m to $337m
primarily driven by the strong operational performance converting
into cash and year on year movement in US player
deposits
· Adjusted Free Cash Flow3 of $157m (Q1 2023 -$50m)
and leverage ratio3,4 of 2.8x at March 31, 2024 based on
last 12 months Adjusted EBITDA3 (December 31, 2023
3.1x), both benefitting from improved financial performance year on
year
2024 Outlook
·
Remain confident in financial year 2024
guidance7 provided at financial year 2023 results
announcement on March 26, 2024, despite unfavorable US sports
results in the last two weeks of March
Peter Jackson, CEO, commented:
"We have had an excellent start to the year. In the US,
FanDuel's top line momentum is translating into strong growth in US
Adjusted EBITDA and market share gains. We are focused on
continuing to expand our player base, market share, and embedding
future profits within our business through disciplined investment.
Outside of the US, our focus on delivering the best products for
our players is driving good momentum in key markets such as the UK
where the launch of Super Sub on Paddy Power has been our most
successful product launch to date, and in Italy where we have been
taking online sports betting and iGaming market share during Q1 and
reached an all-time record in April. We are proud to be one of the
founding members of the US Responsible Online Gaming Association
whose goal is to develop and advance responsible gaming practices.
We are a strong advocate for building a sustainable sector in the
US. We believe that our global experience positions us well to help
lead the way.
On
May 1, shareholders voted to move our primary listing to the US. We
believe a US primary listing is the natural home for the Group and
we look forward to this becoming effective on May 31. With a
greater proportion of the Group's future profits expected to be
generated in the US, we have moved our operational headquarters to
New York reflecting the importance of the US sports betting and
iGaming market to our business."
Q1
24 Operating Review:
US:
FanDuel has started the year
strongly by consolidating its leadership position in sports with a
52% online NGR market share (GGR share 46%) for Q1 2024, while
FanDuel Casino was the number one iGaming brand5. We had a record 27% iGaming GGR
share in Q1, a four-percentage point increase year on year.
FanDuel's total AMP growth of 15% included a record 2.6 million
players for Super Bowl LVIII, the culmination of a highly
successful NFL season.
We launched our sportsbook product
in Vermont (January 11, 2024) and North Carolina (March 11, 2024).
Consistent with our long-term strategy, we are investing behind the
excellent returns being generated from our player promotions and
marketing spend, with projected paybacks on customers acquired in
the quarter in line with historic trends6. North Carolina has been our
second most successful launch to date, with 5.3% of the adult
population signed up to be a FanDuel customer in the first 45
days.
Total new sportsbook and casino
player volumes were lower in the quarter, due to a full quarter of
significant Ohio acquisition volumes in the comparative period.
However, new players acquired in states that launched before 2022
were 12% higher than last year, demonstrating the strong demand for
our products well after the initial launch period (pre 2022 states
staking +19%). We believe the combination of our high structural
sportsbook revenue margin and significant scale result in more
efficient payback periods for FanDuel. Where payback periods
indicate compelling returns on our customer acquisition spend, we
will continue to make disciplined investment to drive future
profitability.
FanDuel added more innovations to
its market leading sportsbook product in the quarter. Ahead of the
new Major League Baseball ("MLB") season we increased the range of
betting markets available to players. This helped drive a
four-percentage point increase in the proportion of handle on Same
Game Parlays across the first three weeks of the MLB
season.
In iGaming, we continue to deliver
on our strategy. Our focus on direct casino players and
best-in-class customer experiences is generating results. We have
gained exclusive online access to one of retail casinos' most
popular slot titles and launched the first in a series of online
versions, which immediately became our most played game. We expect
further slots-based innovation and exclusive content to drive our
leadership in iGaming.
Group Ex-US:
Our diversified Ex-US business grew
AMPs2 by
10% and added another podium position during Q1 with the
acquisition of MaxBet, a leading omnichannel operator in
Serbia.
We continued to deliver a very
strong performance in the UKI with AMPs2 +2% despite the strong prior
year quarter, which benefitted from a halo effect from the FIFA
2022 World Cup. iGaming growth was particularly strong driven by
further product improvements with over 100 new games launched
during Q1 and improved cross-sell rates. In sportsbook we leveraged
the Flutter Edge and launched Super Sub for Paddy Power,
replicating the popular Duo feature first introduced in our
International division. This feature swaps a substitute player into
a parlay bet and early engagement has been positive with over 80%
of football customers engaging with the product in
March.
We are seeing the benefit of product
improvements in key International Consolidate and
Invest8 markets. In Italy, Sisal delivered all-time
record levels of AMPs2, +22% in March compared with
March 2023, together with Q1 market share gains and extending its
lead as the market leading brand in the Italian market in
April8. This was achieved through our new Sisal betting
app, launched in Q3 2023, which continued to help drive high levels
of engagement on sportsbook with online staking +24% year on year.
In addition, expanded casino content, including a free-to-play
"Bonus Wheel" feature drove increased cross-sell rates to iGaming.
In Georgia and Armenia, a redesigned app with more personalized
content helped deliver market share gains and a clear number one
position8. We saw good momentum in Spain and Brazil with
continued focus on localization of our product and optimized
generosity offerings. Junglee Poker was launched in India, in line
with our local hero strategy, with encouraging levels of player
engagement since launch.
Q1 2024 financial highlights:
Group
|
Three months
ended
March 31
|
|
Revenue
|
Adjusted
EBITDA
|
|
2024
|
2023
|
YOY
|
YOY
CC
|
2024
|
2023
|
YOY
|
YOY
CC
|
In
$ millions
|
|
|
|
|
|
|
|
|
US
|
1,410
|
1,071
|
32%
|
32%
|
26
|
(53)
|
|
|
UKI
|
861
|
736
|
17%
|
12%
|
268
|
206
|
30%
|
24%
|
International
|
797
|
760
|
5%
|
6%
|
173
|
149
|
16%
|
20%
|
Australia
|
329
|
351
|
(6%)
|
(2%)
|
83
|
85
|
(2%)
|
2%
|
Unallocated corporate
overhead9
|
|
|
|
|
(36)
|
(35)
|
1%
|
(3%)
|
Group Ex-US
|
1,987
|
1,847
|
8%
|
7%
|
488
|
406
|
20%
|
21%
|
Group
|
3,397
|
2,918
|
16%
|
16%
|
514
|
352
|
46%
|
47%
|
|
|
|
|
|
|
|
|
|
The Group delivered an excellent
performance in Q1 with an 11% increase in
AMPs2 delivering revenue growth of 16% to
$3.4bn. The impact of sports results, calculated as the difference
between our expected net revenue margin and actual net revenue
margin, had an approximate five percentage point negative impact on
Group revenue growth. The increase in
revenue reflects the continued growth of our US business, where
revenue increased 32%, and strong iGaming momentum in UKI. The
addition of MaxBet in Q1 added $47m or two percentage points to
Group revenue growth year on year.
The Group
reported a net loss for the quarter of $177m after recording non-cash
expenses including (i) a loss of $184m relating
to a change in the fair value of the Fox Option liability (Q1 2023:
$64m loss) due to a higher valuation of FanDuel; and
(ii) amortization of acquired intangibles
charge of $172m (Q1 2023: $192m). The increases in the net loss and
the net loss margin during Q1 2024 compared with Q1 2023, were
primarily due to the improved financial performance outlined above
being more than offset by an associated tax charge and the change
in the fair value of the Fox Option liability.
The strong revenue momentum,
combined with a 310bps expansion on our Adjusted EBITDA
margin3, is driving a transformation of Group earnings
with Adjusted EBITDA3 46% higher at $514m. The margin
growth was primarily driven by operating
leverage in our sales and marketing expenses in the US and
International segments. Unallocated corporate overhead increased 1%
(-3% on a constant currency basis10) to $36m reflecting
investment in Flutter Edge capabilities and new compliance
requirements as a U.S. listed company9, offset by an
$18m credit from the settlement of historic litigation.
The higher loss in the current
period increased loss per share by $0.52 to $1.10, and decreased
adjusted earnings per share3 by $0.59 to $0.10. Both
metrics include the $184m loss on the fair value of the Fox Option,
which equates to $1.04 per share.
The Group's net cashflow provided by
operating activities in Q1 2024 increased $386m to $337m driven by
the strong operational performance and the year on year movement in
US player deposits. Adjusted Free Cash
Flow3 of $157m was $207m higher
than the prior year due to Adjusted EBITDA growth and working
capital movements.
Q1
2024 financial highlights: Segments
US revenue increased 32% in Q1
with strong growth in both sportsbook (+30%) and iGaming (+49%).
This reflects total revenue growth of 56% in the period from
January 1, 2024 to March 17, 2024, as reported in our 2023 full
year results on March 26, 2024, and -51% in the remainder of the
quarter. The performance over the last two weeks of the quarter
reflects the significant swing in sports results on the March
Madness college basketball tournament, from favorable in the prior
year to unfavorable in the current year. Sports results for this
two-week period were 320bps ($76m) unfavorable, while sportsbook
stakes were 46% higher.
In sportsbook, revenue growth was
driven by strong engagement with our leading product proposition
with AMPs2 +19% and staking +24%. Sportsbook net revenue margin increased
40bps to 7.3%. This reflected continued expansion of our structural
margin, driven by our market leading product offering, partly
offset by a 150bps adverse impact from unfavorable sports results
versus the comparable period (sports results: Q1 2024 130bps
unfavorable, Q1 2023 20bps favorable11, twelve months to
March 31, 2024 90bps unfavorable). Promotional spend levels were
in-line with the comparable prior year quarter.
iGaming revenue growth reflects the
improvements in our product proposition noted above and our
successful player acquisition driving AMPs2 34% higher. Within iGaming,
slots performed exceptionally well with new content helping drive
slots revenue up 73% versus the prior year.
Adjusted EBITDA3
increased by $79m to $26m due to revenue growth combined with
operating leverage across all cost categories. This drove a 680bps
expansion in Adjusted EBITDA margin3 to 1.8%. Cost of sales as a
percentage of revenue declined 140bps to 59.0%, higher than our
guidance for full year 2024 due to new state launches in the
quarter, but in line with our expectations. Sales and marketing
expenses reduced by 410bps as a percentage of revenue, despite
continued disciplined player acquisition investment, with
significant operating leverage in existing states being partly
offset by new state launches.
UKI revenue increased by 17%
(12% on a constant currency basis10) with
AMP2 growth of 2% despite lapping an enlarged post World Cup
recreational customer base and more congested sporting calendar in
the prior year period. The strong revenue performance was primarily
driven by iGaming +27% with sportsbook +9%. Sportsbook revenue
growth reflected an increase in net revenue margin of 100bps year
on year to 12.6%. This was driven by continued expansion of our
structural margin as penetration of higher margin bet types such as
Build A Bet increase. We also benefited from 40bps of favorable
sports results year on year (Q1 2024: 40bps favorable, Q1 2023: in
line with expected margin). Adjusted EBITDA3 grew 30% with Adjusted EBITDA
margin3 310bps higher reflecting the strong revenue performance and
operating leverage, particularly in sales and marketing.
International delivered
AMP2 growth of 20% including a step up in recreational customer
growth in Junglee Daily Fantasy Sports due to the earlier start to
the Indian Premier League in Q1 2024. Revenue grew by 5% (6% on a
constant currency basis10) driven by iGaming +8%.
Sportsbook revenue declined 12% despite strong staking growth of
21%, due to an adverse year on year swing in sports results of
280bps (Q1 2024: 150bps unfavorable, Q1 2023: 130bps favorable),
primarily in Sisal Italy.
Consolidate and Invest8 markets grew 8% reflecting the acquisition of MaxBet in
January which contributed $47m in revenue during the quarter, as
well as the benefit of our diversified geographic and product
portfolio. Excluding MaxBet, growth in Consolidate and Invest8
markets was flat driven by:
· Strong
revenue growth in Georgia and Armenia (+20%), Spain (+13%) and
Brazil (+8%), as well as good momentum in Turkey (+1%, +66% on a
constant currency basis10)
· Revenue declines in
(i) India (-25%) due to tax changes introduced in Q4 2023, where
product innovation to mitigate the impact has helped to
sequentially improve performance, and (ii) Sisal Italy (-1%) driven
by the impact of unfavorable sports results year on year which had
an approximate 12 percentage point impact on total Sisal Italy
revenue growth. This offset Sisal Italy iGaming revenue growth of
24% despite challenging prior year comparatives which included
engagement driven by the record SuperEnalotto jackpot.
Sales and marketing expenses reduced
as a percentage of revenue by 420bps to 13.0%. This was driven by
increasingly targeted investment to support the key market growth
described above, as well as the reduction in marketing resulting
from the closure of FOX Bet in August 2023. This was partly offset
by investment to support our expanding International portfolio
resulting in an increase in Adjusted EBITDA3 of 16% and Adjusted EBITDA
margin3 of 210bps year on year.
Australia revenue declined 6%
(-2% on a constant currency basis10) with AMPs2
in line year on year. Sportsbook net revenue
margin increased 180bps to 12.9% primarily due to 140bps of more
favorable sports results in the quarter (Q1 2024 170bps favorable;
Q1 2023 30bps favorable). This mostly offset the impact of the
softer racing market environment noted at our FY23 earnings
announcement, which remains in line with our expectations, and
drove total staking 19% lower (-16% on a constant currency
basis10). Lower racing streaming costs partly offset the
revenue decline to result in Adjusted EBITDA3 3% lower (2% higher
on a constant currency basis10) at $83m.
FY
2024 outlook
We remain confident in our financial
year 2024 guidance7
provided at the financial year 2023 results
announcement on March 26, 2024, despite unfavorable US sports
results in last two weeks of March and there is therefore no change
to previously communicated ranges:
· US:
Revenue and Adjusted EBITDA3 mid-points
of $6.0bn and $710m, representing year on year growth of 36.3% and
206.1% respectively.
· Group Ex-US:
Revenue and Adjusted EBITDA mid-points of $7.85bn
and $1.73bn, representing year on year growth of 6.3% and 5.4%
respectively.
Guidance7 is provided (i)
on the basis that sports results are in line with our expected
margin for the remainder of the year, (ii) at current foreign
exchange rates, and (iii) on the basis of a consistent regulatory
and tax framework.
A reconciliation of our
forward-looking non-GAAP financial measures to the most directly
comparable GAAP financial measure cannot be provided without
unreasonable effort. This is due to the inherent difficulty of
accurately forecasting the occurrence and financial impact of the
adjusting items necessary for such a reconciliation to be prepared
of items that have not yet occurred, are out of our control, or
cannot be reasonably predicted.
Capital structure
Total debt decreased to $6,836m from
$7,056m at December 31, 2023
while net
debt3 was
broadly in line at $5,684m from $5,795m. On April, 29 2024, we
refinanced existing debt with the successful placement of over $1bn
in secured senior notes, which mature in 2029. The Group's
leverage ratio3
reduced to 2.8x at March, 31 2024, based on last
12 months EBITDA from 3.1x at the end of December, 31 2023 due to
growth in Adjusted EBITDA. The Group's medium term leverage target
is 2.0-2.5x.
Listing update
On May 1, shareholders voted to move
our primary listing to the US. With a greater proportion of the
Group's future profits expected to be generated in the US, we
believe a US primary listing is the natural home for the Group. The
transition is expected to become effective on May 31, 2024. We have
also moved the Group's operational headquarters to New York
reflecting the importance of the US sports betting and iGaming
market to our business.
Conference call:
Flutter management will host a
conference call today at 6:30 a.m. ET (11:30 a.m. BST) to review
the results and be available for questions, with access via webcast
and telephone.
A public audio webcast of
management's call and the related Q&A can be accessed by
registering here
or via www.flutter.com/investors.
For those unable to listen to the live broadcast, a replay will be
available approximately one hour after conclusion of the call. This
earnings release and supplementary materials will also be made
available via www.flutter.com/investors.
Analysts and investors who wish to
participate in the live conference call must do so by dialing any
of the numbers below and using conference ID 48775. Please dial in
10 minutes before the conference call begins.
+1 646 307 1963 (United
States)
+44 20 3481 4247 (United
Kingdom)
+353 1 582 2023 (Ireland)
+61 2 8088 0946
(Australia)
Forward-Looking Statements
This press release contains
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements reflect
our current expectations as to future events based on certain
assumptions and include any statement that does not directly relate
to any historical or current fact. In some cases, you can identify
these forward-looking statements by the use of words such as
"outlook", "believe(s)", "expect(s)", "potential", "continue(s)",
"may", "will", "should", "could", "would", "seek(s)", "predict(s)",
"intend(s)", "trends", "plan(s)", "estimate(s)", "anticipates",
"projection", "goal", "target", "aspire", "will likely result", and
or the negative version of these words or other comparable words of
a future or forward-looking nature. Such forward-looking statements
are subject to various risks and uncertainties. Accordingly, there
are or will be important factors that could cause actual outcomes
or results to differ materially from those indicated in these
statements. Such factors include, among others: Flutter's ability
to effectively compete in the global entertainment and gaming
industries; Flutter's ability to retain existing customers and to
successfully acquire new customers; Flutter's ability to develop
new product offerings; Flutter's ability to successfully acquire
and integrate new businesses; Flutter's ability to maintain
relationships with third-parties; Flutter's ability to maintain its
reputation; public sentiment towards online betting and iGaming
generally; the potential impact of general economic conditions,
including inflation, rising interest rates and instability in the
banking system, on Flutter's liquidity, operations and personnel;
Flutter's ability to obtain and maintain licenses with gaming
authorities, adverse changes to the regulation of online betting
and iGaming; the failure of additional jurisdictions to legalize
and regulate online betting and iGaming; Flutter's ability to
comply with complex, varied and evolving U.S. and international
laws and regulations relating to its business; Flutter's ability to
raise financing in the future; Flutter's success in retaining or
recruiting officers, key employees or directors; litigation and the
ability to adequately protect Flutter's intellectual property
rights; the impact of data security breaches or cyber-attacks on
Flutter's systems; and Flutter's ability to remediate material
weaknesses in its internal control over financial
reporting.
Additional factors that could cause
the Company's results to differ materially from those described in
the forward-looking statements can be found in Part I, "Item 1A.
Risk Factors" of the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 2023 as filed with the Securities
and Exchange Commission (SEC) and other periodic filings with the
SEC, which are accessible on the SEC's website at
www.sec.gov. Accordingly, there are or
will be important factors that could cause actual outcomes or
results to differ materially from those indicated in these
statements. These factors should not be construed as exhaustive and
should be read in conjunction with the other cautionary statements
that are included in the Company's filings with the SEC. The
Company undertakes no obligation to publicly update or review any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as required by
law.
About Flutter Entertainment plc
Flutter is the world's leading
online sports betting and iGaming operator, with a market leading
position in the US and across the world. Our ambition is to
leverage our significant scale and our challenger mindset to change
our industry for the better. By Changing
the Game, we believe we can deliver long-term growth while
promoting a positive, sustainable future for all our stakeholders.
We are well-placed to do so through the distinctive, global
competitive advantages of the Flutter Edge, which gives our brands
access to group-wide benefits to stay ahead of the competition, as
well as our clear vision for sustainability through our Positive
Impact Plan.
Flutter operates a diverse portfolio
of leading online sports betting and iGaming brands including
FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy
Power, Sisal, tombola, Betfair, MaxBet, Junglee Games and
Adjarabet. We are the industry leader with $11,790m of revenue
globally for fiscal 2023, up 25% YoY, and $3,397m of revenue
globally for the quarter ended March 31, 2024.
Contacts:
Investor Relations:
|
Media Relations:
|
|
|
Paul Tymms, Investor
Relations
|
Kate Delahunty, Corporate
Communications
|
|
Ciara O'Mullane, Investor
Relations
|
Rob Allen, Corporate
Communications
|
|
Liam Kealy, Investor
Relations
|
Rupert Gowrley, Corporate
Communications
|
|
Email: investorrelations@flutter.com
|
Email: corporatecomms@flutter.com
|
|
|
|
|
|
|
| |
Links:
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Notes
1.
Growth rates throughout this release are Q1 2024
versus Q1 2023, unless otherwise stated.
2.
Average Monthly Players ("AMPs") is defined as the
average over the applicable reporting period of the total number of
players who have placed and/or wagered a stake and/or contributed
to rake or tournament fees during the month. This measure does not
include individuals who have only used new player or player
retention incentives, and this measure is for online players only
and excludes retail player activity. In circumstances where a
player uses multiple product categories within one brand, we are
generally able to identify that it is the same player who is using
multiple product categories and therefore count this player as only
one AMP at the Group level while also counting this player as one
AMP for each separate product category that the player is using. As
a result, the sum of the AMPs presented at the product category
level is greater than the total AMPs presented at the Group level.
See "-"Item 5. Operating and Financial Review and Prospects-Key
Operational Metrics" of the Company's Amendment No. 1 to the
Registration Statement on Form 20-F as filed with the Securities
and Exchange Commission ("SEC"), on January 18, 2024 for additional
information regarding how we calculate AMPs data, including a
discussion regarding duplication of players that exists in such
data.
3.
Adjusted EBITDA,
Adjusted EBITDA Margin,
Group Ex-US Adjusted EBITDA, Adjusted Free
Cash Flows, Net Debt, Leverage Ratio,
Constant Currency, Adjusted Net
Profit Attributable to Flutter Shareholders
and Adjusted Earnings Per Share are non-GAAP
financial measures. See "Definitions of
non-GAAP financial measures" and "Reconciliations of Non-GAAP Financial Measures"
sections of this document
for definitions of these measures
and reconciliations to the most directly
comparable financial measures calculated in accordance with GAAP.
Due to rounding, these numbers may not add up precisely to the
totals provided.
4. Beginning January 1, 2024, the Group revised its definition of
Adjusted EBITDA, which is the segment measure used to evaluate
performance and allocate resources. The definition of Adjusted
EBITDA now excludes share-based compensation as management believes
inclusion of share-based compensation can obscure underlying
business trends as share-based compensation could vary widely among
companies due to different plans in place resulting in companies
using share-based compensation awards differently, both in type and
quantity of awards granted.
5.
US market position based on available market share
data for states in which FanDuel is active. Online sportsbook
market share is the gross
gaming revenue (GGR) and
net gaming revenue (NGR) market share of our FanDuel brand
for the three months to March 31, 2024 in the states in which
FanDuel was live (excluding Tennessee as they no longer report this
data), based on published gaming regulator reports in those states.
iGaming market share is the GGR, market share of FanDuel and
PokerStars US (which is reported in the International
segment) for the three months to March 31, 2024 in the states in which those
brands were live, based on published gaming regulator reports in
those states. Number one iGaming brand based on FanDuel and peer
GGR for the three months to March 2024 based on published gaming
regulator reports and external estimates by Eilers and Krejcik for
competitor market share.
6. Payback is
calculated as the projected average length of time it takes players
to generate sufficient Adjusted gross profit to repay the original
average cost of acquiring those players. Customer acquisition costs
include the marketing and associated promotional spend incurred to
acquire a customer. The projected Adjusted gross profit is based on
predictive models considering inputs such as staking behavior,
interaction with promotional offers and gross revenue margin.
Projected Adjusted gross profit includes associated variable costs
of revenue as well as retention generosity costs.
7.
Foreign exchange rates assumed in our 2024
guidance were USD:GBP of 0.790, USD:EUR of 0.930 and USD:AUD of
1.540.
8. Consolidate and Invest markets within our International
segment are Italy, Spain, Georgia, Armenia, Serbia, Brazil, India,
Turkey, Morrocco, Bosnia & Herzegovina and the US.
International market positions reflect company estimates using a
variety of methods depending on the data sources available for the
relevant market, and include data releases by the relevant
regulatory body, market research and aggregated banking deposit
information. Italian market position and share based on regulator
GGR data from Agenzia delle dogane e dei Monopoli.
9.
Unallocated corporate overhead includes shared
technology, research and development, sales and marketing, and
general and administrative expenses that are not allocated to
specific segments.
10. Constant currency growth rates are calculated by retranslating
the non-US dollar denominated component of Q1 2023 at Q1 2024
exchange rates. See reconciliation on page 19.
11. The Q1 2023 impact of sports results has been updated from the
80bps of favorable sports results per our Q1 2023 trading update
published on May, 3 2023, following a reassessment of the expected
revenue margin being generated from parlay bets.
Definitions of non-GAAP financial measures
This press release includes Adjusted
EBITDA, Adjusted EBITDA Margin, Group Ex-US Adjusted EBITDA,
Adjusted Net Profit Attributable to Flutter Shareholders, Adjusted
Earnings Per Share ("Adjusted EPS"), leverage ratio, Net Debt,
Adjusted Free Cash Flow, and constant currency which are non-GAAP
financial measures that we use to supplement our results presented
in accordance with U.S. generally accepted accounting principles
("GAAP"). These non-GAAP measures are presented solely as
supplemental disclosures to reported GAAP measures because we
believe that these non-GAAP measures are useful in evaluating our
operating performance, similar to measures reported by its
publicly-listed U.S. competitors, and regularly used by analysts,
lenders, financial institutional and investors as measures of
performance. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net
Profit Attributable to Flutter Shareholders, Adjusted EPS, leverage
ratio, Net Debt, Adjusted Free Cash Flow, and Adjusted Depreciation
are not intended to be substitutes for any GAAP financial measures,
and, as calculated, may not be comparable to other similarly titled
measures of performance of other companies in other industries or
within the same industry.
Constant currency reflects certain operating results on
a constant-currency basis in order to facilitate period-to-period
comparisons of our results without regard to the impact of
fluctuating foreign currency exchange rates. The term foreign
currency exchange rates refer to the exchange rates used to
translate our operating results for all countries where the
functional currency is not the U.S. Dollar, into U.S. Dollars.
Because we are a global company, foreign currency exchange rates
used for translation may have a significant effect on our reported
results. In general, our financial results are affected positively
by a weaker U.S. Dollar and are affected negatively by a stronger
U.S. Dollar. References to operating results on a constant-currency
basis mean operating results without the impact of foreign currency
exchange rate fluctuations. We believe the disclosure of
constant-currency results is helpful to investors because it
facilitates period-to-period comparisons of our results by
increasing the transparency of our underlying performance by
excluding the impact of fluctuating foreign currency exchange
rates. We calculate constant currency revenue, Adjusted EBITDA and
Segment Adjusted EBITDA by translating prior-period revenue,
Adjusted EBITDA and Segment Adjusted EBITDA, as applicable, using
the average exchange rates from the current period rather than the
actual average exchange rates in effect in the prior
period.
Adjusted EBITDA is defined on a
Group basis as net profit/(loss) before income taxes; other
(expense)/income, net; interest expense, net; depreciation and
amortization; transaction fees and associated costs; restructuring
and integration costs; impairment of PPE and intangible assets and
share based compensation expense.
Adjusted EBITDA Margin is
Adjusted EBITDA as a percentage of revenue,
respectively.
Group Ex-US Adjusted EBITDA is
defined as Group Adjusted EBITDA excluding our US Segment Adjusted
EBITDA.
Adjusted Net Profit Attributable to Flutter
Shareholders is defined as net
profit/(loss) as adjusted for after-tax effects of transaction fees
and associated costs; restructuring and integration costs; gaming
taxes dispute, amortization of acquired intangibles, accelerated
amortization, loss/(gain) on settlement of long-term debt;
impairment of PPE and intangible assets; financing related fees not
eligible for capitalization; gain from disposal of businesses and
share-based compensation.
Adjusted EPS is calculated by
dividing adjusted net profit attributable to Flutter shareholders
by the number of diluted weighted-average ordinary shares
outstanding in the period.
Adjusted EBITDA, Adjusted EBITDA
Margin, Group Ex-US Adjusted EBITDA, Adjusted net profit
attributable to Flutter shareholders and Adjusted EPS are non-GAAP
measures and should not be viewed as measures of overall operating
performance, indicators of our performance, considered in
isolation, or construed as alternatives to operating profit/(loss),
net profit/(loss) measures or earnings per share, or as
alternatives to cash flows from operating activities, as measures
of liquidity, or as alternatives to any other measure determined in
accordance with GAAP.
Management has historically used
these measures when evaluating operating performance because we
believe that they provide additional perspective on the financial
performance of our core business.
Adjusted EBITDA has further
limitations as an analytical tool. Some of these limitations
are:
· it does not reflect the Group's cash expenditures or future
requirements for capital expenditure or contractual
commitments;
· it
does not reflect changes in, or cash requirements for, the Group's
working capital needs;
· it
does not reflect interest expense, or the cash requirements
necessary to service interest or principal payments, on the Group's
debt;
·
it does not reflect
shared-based compensation expense which is primarily a non-cash
charge that is part of our employee compensation;
·
although depreciation and
amortization are non-cash charges, the assets being
depreciated and amortized will often have to be replaced in the
future, and Adjusted EBITDA does not reflect any cash requirements
for such replacements;
· it is
not adjusted for all non-cash income or expense items
that are reflected in the Group's statements of cash flows;
and
· the
further adjustments made in calculating Adjusted EBITDA are those
that management consider not to be representative of the underlying
operations of the Group and therefore are subjective in
nature.
Net
debt is defined as total debt,
excluding premiums, discounts, and deferred financing expense, and
the effect of foreign exchange that is economically hedged as a
result of our cross-currency interest rate swaps reflecting the net
cash outflow on maturity less cash and cash equivalents.
Leverage ratio is defined as
net debt divided by Adjusted EBITDA. We use this non-GAAP financial
measure to evaluate our financial leverage. We present net debt to
Adjusted EBITDA because we believe it is more representative of our
financial position as it is reflective of our ability to cover our
net debt obligations with results from our core operations, and is
an indicator of our ability to obtain additional capital resources
for our future cash needs. We believe net debt is a meaningful
financial measure that may assist investors in understanding our
financial condition and recognizing underlying trends in our
capital structure. The Leverage Ratio is not a substitute for, and
should be used in conjunction with, GAAP financial ratios. Other
companies may calculate leverage ratios differently.
Adjusted Free Cash Flow is
defined as net cash provided by operating activities excluding
changes in operating assets and liabilities related to player
deposits - investments and player deposit liabilities, cash paid
for transaction fees and associated cost, restructuring fees and
integration cost less payments for property and equipment,
intangible assets and capitalized software. We believe that
excluding these items from adjusted free cash flow better portrays
our ability to generate cash, as such items are not indicative of
our operating performance for the period. This non-GAAP measure may
be useful to investors and other users of our financial statements
as a supplemental measure of our cash performance, but should not
be considered in isolation, as a measure of residual cash flow
available for discretionary purposes, or as an alternative to
operating cash flows presented in accordance with GAAP. Adjusted
Free Cash Flow does not necessarily represent funds available for
discretionary use and is not necessarily a measure of our ability
to fund our cash needs. Our calculation of Adjusted Free Cash Flow
may differ from similarly titled measures used by other companies,
limiting their usefulness as a comparative measure.
Adjusted depreciation is
defined as depreciation and amortization excluding amortization of
acquired intangibles.
Consolidated Balance Sheets:
($
in millions except share and per share amounts)
|
Three months ended March
31,
|
|
Year ended December
31,
|
|
2024
|
|
2023
|
Assets
|
|
|
|
Current assets:
|
|
|
|
Cash and cash equivalents
|
1,353
|
|
1,497
|
Cash and cash equivalents -
restricted
|
22
|
|
22
|
Player deposits - cash and cash
equivalents
|
1,782
|
|
1,752
|
Player deposits -
investments
|
173
|
|
172
|
Accounts receivable, net
|
82
|
|
90
|
Prepaid expenses and other current
assets
|
448
|
|
443
|
Total current assets
|
3,860
|
|
3,976
|
Investments
|
7
|
|
9
|
Property and equipment,
net
|
478
|
|
471
|
Operating lease right-of-use
assets
|
449
|
|
429
|
Intangible assets, net
|
5,787
|
|
5,881
|
Goodwill
|
13,678
|
|
13,745
|
Deferred tax assets
|
27
|
|
24
|
Other non-current assets
|
104
|
|
100
|
Total assets
|
24,390
|
|
24,635
|
Liabilities, redeemable non-controlling interests and
shareholders' equity
|
|
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
265
|
|
240
|
Player deposit liability
|
1,842
|
|
1,786
|
Operating lease
liabilities
|
128
|
|
123
|
Long-term debt due within one
year
|
46
|
|
51
|
Other current liabilities
|
2,305
|
|
2,326
|
Total current liabilities:
|
4,586
|
|
4,526
|
Operating lease liabilities -
non-current
|
362
|
|
354
|
Long-term debt
|
6,790
|
|
7,005
|
Deferred tax liabilities
|
783
|
|
802
|
Other non-current
liabilities
|
733
|
|
580
|
Total liabilities
|
13,254
|
|
13,267
|
Redeemable non-controlling interests
|
1,462
|
|
1,152
|
Shareholders' equity
|
|
|
|
Common share (Authorized 300,000,000
shares of €0.09 ($0.09) par value each; issued March 31, 2024:
177,445,195 shares; December 31, 2023: 177,008,649
shares)
|
36
|
|
36
|
Shares held by employee benefit
trust, at cost March 31, 2024: nil shares, December 31, 2023:
nil
|
-
|
|
-
|
Additional paid-in
capital
|
1,439
|
|
1,385
|
Accumulated other comprehensive
loss
|
(1,669)
|
|
(1,483)
|
Retained earnings
|
9,694
|
|
10,106
|
Total Flutter shareholders' equity
|
9,500
|
|
10,044
|
Non-controlling interests
|
174
|
|
172
|
Total shareholders' equity
|
9,674
|
|
10,216
|
Total liabilities, redeemable non-controlling interests and
shareholders' equity
|
24,390
|
|
24,635
|
Consolidated Statement of Comprehensive
Income/(Loss):
($
in millions except per share and per share
amounts)
|
Three months ended March
31,
|
|
2024
|
|
2023
|
Revenue
|
3,397
|
|
2,918
|
Cost of Sales
|
(1,793)
|
|
(1,541)
|
Gross profit
|
1,604
|
|
1,377
|
Technology, research and development
expenses
|
(190)
|
|
(168)
|
Sales and marketing
expenses
|
(881)
|
|
(882)
|
General and administrative
expenses
|
(409)
|
|
(342)
|
Operating profit / (loss)
|
124
|
|
(15)
|
Other expense, net
|
(174)
|
|
(45)
|
Interest expense, net
|
(112)
|
|
(92)
|
Loss before income taxes
|
(162)
|
|
(152)
|
Income tax (expense) /
income
|
(15)
|
|
41
|
Net
loss
|
(177)
|
|
(111)
|
Net gain/(loss) attributable to
non-controlling interests and redeemable non-controlling
interests
|
4
|
|
(9)
|
Adjustment of redeemable
non-controlling interest to redemption value
|
15
|
|
-
|
Net loss attributable to Flutter
shareholders
|
(196)
|
|
(102)
|
Net
loss per share
|
|
|
|
Basic
|
(1.10)
|
|
(0.58)
|
Diluted
|
(1.10)
|
|
(0.58)
|
Other comprehensive (loss) / income, before
tax:
|
|
|
|
Effective portion of changes in fair
value of cash flow hedges
|
23
|
|
(60)
|
Fair value of cash flow hedges
transferred to the income statement
|
(14)
|
|
43
|
Foreign exchange (loss) / gain on
net investment hedges
|
(21)
|
|
4
|
Foreign exchange (loss) / gain on
translation of the net assets of foreign currency denominated
entities
|
(185)
|
|
177
|
Fair value movements on available
for sale debt instruments
|
(1)
|
|
1
|
Other comprehensive (loss) / income
|
(198)
|
|
165
|
Other comprehensive
(loss) / income attributable to Flutter shareholders
|
(188)
|
|
139
|
Other comprehensive (loss) / income
attributable to non-controlling interest and redeemable
non-controlling interest
|
(10)
|
|
26
|
Total comprehensive (loss) / income
|
(375)
|
|
54
|
|
|
|
|
Consolidated Statement of Cash
Flows
($
in millions)
|
Three months ended March
31,
|
Cash flows from operating activities
|
2024
|
|
2023
|
Net loss
|
(177)
|
|
(111)
|
Adjustments to reconcile net loss to
net cash from operating activities:
|
|
|
|
Depreciation and
amortization
|
297
|
|
297
|
Change in fair value of
derivatives
|
(15)
|
|
17
|
Non-cash interest income,
net
|
(1)
|
|
(8)
|
Non-cash operating lease
expense
|
32
|
|
31
|
Unrealized foreign currency exchange
(gain) / loss, net
|
8
|
|
(36)
|
Share-based compensation - equity
classified
|
40
|
|
32
|
Share-based compensation - liability
classified
|
1
|
|
14
|
Other expense, net
|
186
|
|
64
|
Deferred taxes
|
(48)
|
|
(113)
|
Change in contingent
consideration
|
-
|
|
(2)
|
Change in operating assets and
liabilities:
|
|
|
|
Player deposits -
investments
|
-
|
|
(7)
|
Accounts receivable, net
|
19
|
|
45
|
Prepaid expenses and other current
assets
|
13
|
|
(73)
|
Accounts payable
|
(18)
|
|
25
|
Other current
liabilities
|
(40)
|
|
(119)
|
Player deposit liability
|
73
|
|
(77)
|
Operating leases
liabilities
|
(33)
|
|
(28)
|
Net
cash generated by/(used in) operating activities
|
337
|
|
(49)
|
Cash flows from investing activities
|
|
|
|
Purchases of property and
equipment
|
(22)
|
|
(18)
|
Purchases of intangible
assets.
|
(57)
|
|
(43)
|
Capitalized software
|
(73)
|
|
(66)
|
Acquisitions, net of cash
acquired
|
(107)
|
|
-
|
Net
cash used in investing activities
|
(259)
|
|
(127)
|
Cash flows from financing activities
|
|
|
|
Proceeds from issue of common share
upon exercise of options
|
14
|
|
1
|
Proceeds from issuance of long-term
debt (net of transaction costs)
|
639
|
|
609
|
Repayment of long-term
debt
|
(834)
|
|
(608)
|
Net
cash (used in)/provided by financing activities
|
(181)
|
|
2
|
Net
decrease in cash, cash equivalents and restricted
cash
|
(103)
|
|
(174)
|
Cash, cash equivalents and restricted cash - beginning of the
period
|
3,271
|
|
2,990
|
Foreign currency exchange on cash and cash
equivalents
|
(11)
|
|
25
|
Cash, cash equivalents and restricted cash - end of the
period
|
3,157
|
|
2,841
|
Cash, cash equivalents and restricted cash comprise
of:
|
|
|
|
Cash and cash equivalents
|
1,353
|
|
821
|
Cash and cash equivalents -
restricted
|
22
|
|
28
|
Player deposits - cash and cash
equivalents
|
1,782
|
|
1,992
|
Cash, cash equivalents and restricted cash - end of the
period
|
3,157
|
|
2,841
|
Supplemental disclosures of cash flow
information:
|
|
|
|
Interest paid
|
123
|
|
97
|
Income taxes paid
|
29
|
|
52
|
Non-cash investing and financing activities:
|
|
|
|
Operating cash flows from operating
leases
|
38
|
|
32
|
Right-of-use assets obtained in
exchange of operating lease liabilities
|
20
|
|
20
|
Adjustments to lease balances as a
result of remeasurement
|
(2)
|
|
6
|
Business acquisitions (including
contingent consideration)
|
26
|
|
-
|
Reconciliations of non-GAAP financial
measures
Adjusted EBITDA reconciliation:
See below a reconciliation
of Adjusted
EBITDA and Adjusted EBITDA Margin to net loss, the most comparable
GAAP measure.
($
in millions)
|
Three months ended March
31,
|
|
2024
|
|
2023
|
Net loss
|
(177)
|
|
(111)
|
Add back:
|
|
|
|
Income taxes
|
15
|
|
(41)
|
Other expense, net
|
174
|
|
45
|
Interest expense, net
|
112
|
|
92
|
Depreciation and
amortization
|
297
|
|
297
|
Share-based compensation
expense
|
41
|
|
46
|
Transaction fees and associated
costs1
|
29
|
|
3
|
Restructuring and integration
costs2
|
23
|
|
21
|
Group Adjusted EBITDA
|
514
|
|
352
|
Less: US Adjusted
EBITDA
|
26
|
|
(53)
|
Group Ex-US Adjusted EBITDA
|
488
|
|
406
|
Group Revenue
|
3,397
|
|
2,918
|
Group Adjusted EBITDA
Margin
|
15.1%
|
|
12.1%
|
|
|
|
|
1. Comprises advisory fees of $25 million related to
implementation of internal controls, information system changes and
other activities related to the anticipated change in the primary
listing of the Group for the three months ended March 31,
2024
2.
During the three months ended March 31,
2024, costs of $23 million (three months ended March 31, 2023: $21
million) primarily relate to various restructuring and other
strategic initiatives to drive synergies . These actions include
efforts to consolidate and integrate our technology infrastructure,
back-office functions and relocate certain operations to lower cost
locations. The costs primarily include severance expenses, advisory
fees and temporary staffing cost.
Adjusted Free Cash Flow reconciliation:
See below a reconciliation of Adjusted Free Cash Flow to
net cash generated/ (used) in operating
activities, the most comparable GAAP
measure.
($ in millions)
|
Three months ended March
31,
|
|
2024
|
|
2023
|
Net cash provided by/(used in)
operating activities
|
337
|
|
(49)
|
Less:
|
|
|
|
Change in player deposits
|
-
|
|
7
|
Change in player deposit
liability
|
(73)
|
|
77
|
Add cash impact of:
|
|
|
|
Transaction fees and associated
costs
|
25
|
|
18
|
Restructuring and integration
costs
|
20
|
|
24
|
Less cash impact of:
|
|
|
|
Purchase of property and
equipment
|
(22)
|
|
(18)
|
Purchases of intangible
assets
|
(57)
|
|
(43)
|
Capitalized software
|
(73)
|
|
(66)
|
Adjusted Free Cash Flow
|
157
|
|
(50)
|
|
|
|
|
Net debt reconciliation:
See below a reconciliation
of net debt to
long-term debt, the most comparable GAAP measure.
($
in millions)
|
As at March
31,
|
|
As at December
31,
|
|
2024
|
|
2023
|
Long-term debt
|
6,790
|
|
7,005
|
Long-term debt due within one
year
|
46
|
|
51
|
Total Debt
|
6,836
|
|
7,056
|
Add:
|
|
|
|
Transactions costs, premiums or
discount included in the carrying value of debt
|
52
|
|
54
|
Less:
|
|
|
|
Unrealized foreign exchange on
translation of foreign currency debt1
|
149
|
|
182
|
Cash and cash equivalents
|
(1,353)
|
|
(1,497)
|
Net
debt
|
5,684
|
|
5,795
|
|
|
|
|
|
|
|
|
|
| |
1. Representing the adjustment for foreign exchange that is
economically hedged as a result of our cross-currency interest rate
swaps to reflect the net cash outflow on maturity.
Adjusted net profit attributable to Flutter
shareholders:
See below a reconciliation
of Adjusted net
profit attributable to Flutter shareholders to net loss, the most
comparable GAAP measure.
($
in millions)
|
Three months ended March
31,
|
|
2024
|
|
2023
|
Net loss
|
(177)
|
|
(111)
|
Add (Less):
|
|
|
|
Transaction fees and associated
costs
|
29
|
|
3
|
Restructuring and integration
costs
|
23
|
|
21
|
Amortization of acquired
intangibles
|
172
|
|
192
|
Share-based compensation
|
41
|
|
46
|
Tax impact of above
adjustments1
|
(51)
|
|
(37)
|
Adjusted net profit
|
37
|
|
114
|
Less:
|
|
|
|
Net loss attributable
to non-controlling interests and
redeemable non-controlling interests2
|
4
|
|
(9)
|
Adjustment of
redeemable non-controlling interest3
|
15
|
|
-
|
Adjusted net profit
attributable to Flutter shareholders
|
18
|
|
123
|
Weighted average number of
shares
|
177,757,967
|
|
177,325,483
|
|
|
|
|
1. Tax rates used in calculated adjusted net profit attributable
to Flutter shareholders is the statutory tax rate applicable to the
geographies in which the adjustments were incurred.
2. Represents net loss attributed to the non-controlling interest
in Sisal and the redeemable non-controlling interest in FanDuel and
Junglee.
3. Represents the adjustment made to the carrying value of the
redeemable non-controlling interests in Junglee to account for the
higher of (i) the initial carrying amount adjusted for cumulative
earnings allocations, or (ii) redemption value at each reporting
date through retained earnings.
Adjusted Earnings Per Share reconciliation:
See below a reconciliation
of Adjusted
Earnings Per Share to net loss per share, the most comparable GAAP
measure.
($
in millions)
|
Three months ended March
31,
|
|
2024
|
|
2023
|
Net loss per Flutter
shareholders
|
(1.10)
|
|
(0.58)
|
Add (Less):
|
|
|
|
Transaction fees and associated
costs
|
0.16
|
|
0.02
|
Restructuring and integration
costs
|
0.13
|
|
0.12
|
Amortization of acquired
intangibles
|
0.97
|
|
1.08
|
Share-based compensation
|
0.23
|
|
0.26
|
Tax impact of above
adjustments
|
(0.28)
|
|
(0.21)
|
Adjusted earnings per share
|
0.10
|
|
0.69
|
|
|
|
|
Constant currency ('CC') growth rate
reconciliation:
See below a reconciliation of constant currency growth rates
to nominal currency growth rates, the most comparable GAAP
measure.
($
in millions)
|
Three months ended March
31,
|
unaudited
|
2024
|
2023
|
YOY
|
|
2023
|
2023
|
YOY
|
Revenue
|
|
|
|
|
FX impact
|
CC
|
CC
|
US
|
1,410
|
1,071
|
32%
|
|
-
|
1,071
|
32%
|
UKI
|
861
|
736
|
17%
|
|
30
|
766
|
12%
|
International
|
797
|
760
|
5%
|
|
(11)
|
749
|
6%
|
Australia
|
329
|
351
|
(6%)
|
|
(13)
|
337
|
(2%)
|
Group
|
3,397
|
2,918
|
16%
|
|
5
|
2,923
|
16%
|
Group Ex-US
|
1,987
|
1,847
|
8%
|
|
5
|
1,853
|
7%
|
Adjusted EBITDA
|
|
|
|
|
|
|
|
US
|
26
|
(53)
|
|
|
(2)
|
(55)
|
|
UKI
|
268
|
206
|
30%
|
|
10
|
216
|
24%
|
International
|
173
|
149
|
16%
|
|
(5)
|
144
|
20%
|
Australia
|
83
|
85
|
(2%)
|
|
(4)
|
81
|
2%
|
Unallocated corporate
overhead
|
(36)
|
(35)
|
1%
|
|
(1)
|
(36)
|
(3%)
|
Group
|
514
|
352
|
46%
|
|
(3)
|
350
|
47%
|
Group Ex-US
|
488
|
406
|
20%
|
|
(1)
|
404
|
21%
|
|
|
|
|
|
|
|
|
Segment KPIs:
($
in millions)
|
Three months ended March
31,
|
|
YoY
|
Unaudited
|
US
|
UKI
|
Intl
|
Aus
|
|
US
|
UKI
|
Intl
|
Aus
|
Average monthly players ('000s)
|
3,898
|
4,096
|
4,738
|
991
|
|
+15%
|
+2%
|
+20%
|
-
|
Sportsbook stakes
|
13,484
|
3,263
|
1,567
|
2,546
|
|
+24%
|
+1%
|
+21%
|
(19%)
|
Sportsbook net revenue margin
|
7.3%
|
12.6%
|
10.2%
|
12.9%
|
|
+40bps
|
+100bps
|
(370bps)
|
+180bps
|
|
|
|
|
|
|
|
|
|
|
Sportsbook revenue
|
986
|
411
|
160
|
329
|
|
+30%
|
+9%
|
(12%)
|
(6%)
|
iGaming revenue
|
358
|
406
|
600
|
-
|
|
+49%
|
+27%
|
+8%
|
-
|
Other revenue
|
66
|
44
|
37
|
-
|
|
(7%)
|
+7%
|
+42%
|
-
|
Total revenue
|
1,410
|
861
|
797
|
329
|
|
+32%
|
+17%
|
+5%
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
26
|
268
|
173
|
83
|
|
N/A
|
+30%
|
+16%
|
(2%)
|
Adjusted EBITDA margin
|
1.8%
|
31.1%
|
21.7%
|
25.2%
|
|
+680bps
|
+310bps
|
+210bps
|
+100bps
|
|
|
|
|
|
|
|
|
|
|
Additional information: Segment cost of sales and operating
expenses
|
|
|
|
|
|
Cost of Sales
|
833
|
314
|
374
|
174
|
|
+29%
|
+19%
|
+5%
|
(7%)
|
Technology, research and development
expenses
|
55
|
40
|
51
|
9
|
|
+14%
|
+12%
|
+16%
|
(10%)
|
Sales and marketing
expenses
|
422
|
166
|
104
|
47
|
|
+16%
|
+8%
|
(21%)
|
(11%)
|
General and administrative
expenses
|
74
|
73
|
95
|
17
|
|
+15%
|
(5%)
|
+17%
|
2%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of supplementary non GAAP information: Adjusted
depreciation and amortization
($
in millions)
|
Three months ended March 31,
2024
|
|
Three months ended March 31,
2023
|
Unaudited
|
US
|
UKI
|
Intl
|
Aus
|
Corp
|
Total
|
|
US
|
UKI
|
Intl
|
Aus
|
Corp
|
Total
|
Depreciation and
Amortization
|
29
|
101
|
146
|
15
|
6
|
297
|
|
25
|
101
|
159
|
14
|
-
|
297
|
Less: Amortization of acquired
intangibles
|
(4)
|
(70)
|
(93)
|
(4)
|
-
|
(172)
|
|
(5)
|
(76)
|
(106)
|
(6)
|
-
|
(192)
|
Adjusted depreciation and
amortization1
|
25
|
31
|
53
|
11
|
6
|
125
|
|
20
|
25
|
53
|
8
|
-
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
Adjusted depreciation and amortization is defined
as depreciation and amortization excluding amortization of acquired
intangibles.
US
GAAP - Consolidated Group income statement update
Note: Income tax (expense)/benefit for Q1 2021 - Q4 2023 has
been updated as compared to the data published in the IFRS to US
GAAP conversion materials on February 29, 2024 and the FY 2023 KPI
pack published on 26 March 2024. The updates are confined to
allocation of the tax (expense)/benefit between quarters and does
not impact the income tax (expense)/benefit for FY 2021, 2022 or
2023.
($
in millions)
|
Q1 2021
|
Q2 2021
|
Q3 2021
|
Q4 2021
|
FY 2021
|
Q1 2022
|
Q2 2022
|
Q3 2022
|
Q4 2022
|
FY 2022
|
Q1 2023
|
Q2 2023
|
Q3 2023
|
Q4 2023
|
FY 2023
|
Q1 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sportsbook
|
1,055
|
1,212
|
1,105
|
1,140
|
4,512
|
1,111
|
1,341
|
1,215
|
1,649
|
5,316
|
1,667
|
1,725
|
1,288
|
1,906
|
6,585
|
1,886
|
iGaming
|
813
|
796
|
736
|
770
|
3,115
|
853
|
798
|
879
|
1,043
|
3,573
|
1,113
|
1,122
|
1,135
|
1,251
|
4,621
|
1,364
|
Other
|
179
|
184
|
150
|
169
|
682
|
144
|
148
|
133
|
150
|
574
|
139
|
154
|
136
|
155
|
584
|
147
|
Total revenue
|
2,047
|
2,191
|
1,992
|
2,079
|
8,308
|
2,108
|
2,287
|
2,227
|
2,842
|
9,463
|
2,918
|
3,000
|
2,559
|
3,312
|
11,790
|
3,397
|
Cost of sales
|
(918)
|
(970)
|
(962)
|
(1,031)
|
(3,881)
|
(1,085)
|
(1,100)
|
(1,176)
|
(1,452)
|
(4,813)
|
(1,541)
|
(1,490)
|
(1,386)
|
(1,784)
|
(6,202)
|
(1,793)
|
Gross profit
|
1,129
|
1,221
|
1,030
|
1,047
|
4,427
|
1,023
|
1,186
|
1,051
|
1,390
|
4,650
|
1,377
|
1,510
|
1,173
|
1,528
|
5,588
|
1,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technology, research and development
expenses
|
(133)
|
(215)
|
(129)
|
(156)
|
(634)
|
(133)
|
(156)
|
(109)
|
(154)
|
(552)
|
(168)
|
(176)
|
(214)
|
(207)
|
(765)
|
(190)
|
Sales & marketing
expenses
|
(726)
|
(706)
|
(653)
|
(735)
|
(2,819)
|
(751)
|
(685)
|
(681)
|
(897)
|
(3,014)
|
(882)
|
(667)
|
(700)
|
(1,527)
|
(3,776)
|
(881)
|
General and administrative
expenses
|
(157)
|
(547)
|
(476)
|
(244)
|
(1,423)
|
(272)
|
(236)
|
(349)
|
(315)
|
(1,172)
|
(342)
|
(444)
|
(394)
|
(415)
|
(1,596)
|
(409)
|
Operating profit / (loss)
|
113
|
(246)
|
(229)
|
(87)
|
(449)
|
(133)
|
109
|
(88)
|
24
|
(88)
|
(15)
|
223
|
(135)
|
(621)
|
(549)
|
124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income,
net
|
88
|
(16)
|
97
|
(68)
|
101
|
91
|
(27)
|
31
|
(91)
|
5
|
(45)
|
11
|
(44)
|
(80)
|
(157)
|
(174)
|
Interest expense, net
|
(53)
|
(54)
|
(107)
|
(0)
|
(215)
|
(41)
|
(35)
|
(52)
|
(84)
|
(212)
|
(92)
|
(83)
|
(92)
|
(117)
|
(385)
|
(112)
|
Profit/(loss) before tax
|
148
|
(316)
|
(239)
|
(156)
|
(563)
|
(84)
|
48
|
(109)
|
(150)
|
(295)
|
(152)
|
152
|
(271)
|
(818)
|
(1,091)
|
(162)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) /
benefit
|
(46)
|
(128)
|
(2)
|
(19)
|
(194)
|
1
|
(48)
|
(52)
|
24
|
(75)
|
41
|
(86)
|
10
|
(85)
|
(120)
|
(15)
|
Net
profit / (loss)
|
102
|
(444)
|
(241)
|
(175)
|
(757)
|
(83)
|
-
|
(161)
|
(126)
|
(370)
|
(111)
|
66
|
(261)
|
(903)
|
(1,211)
|
(177)
|