Flutter Entertainment (FLUT) Soars on 30% Core Profit Forecast
Flutter Entertainment (FLUT) saw a significant increase in its stock price in premarket trading on Tuesday after announcing a 30% growth in core profits for the year. This growth is attributed to the company’s successful expansion in the U.S. market.
Analysts at Jefferies have noted that Flutter’s performance aligns with market expectations, with the company forecasting its U.S. core profits to reach between $635 million and $785 million, a significant jump from $167 million the previous year. This marks Flutter’s first profitable year in the U.S. following the lift of the Sports betting ban in 2018.
Internationally, Flutter anticipates core profits to range from $1.63 billion to $1.83 billion, compared to $1.71 billion in 2023, in line with its previous forecasts. The company has also set full-year 2024 guidance, with a projected increase in Group revenue by 17.5% and a rise in Further Adjusted EBITDA by 30.2% at the midpoint of forecasts.
Specifically, Flutter expects U.S. revenue to be between $5.8 billion and $6.2 billion, indicating a year-on-year growth of approximately 36.3% at the midpoint. The company reported a 23% increase in group revenue for the first 11 weeks of 2024, with a notable 56% rise in the U.S. market, driven by record engagement during February’s Super Bowl.
For fiscal 2023, Flutter reported a net loss per share of $6.89 on revenue of $11.79 billion. Revenue trends show a 3% increase in Flutter’s international segment and a 17% rise in the UK and Ireland, where the company’s market share has grown to 30%. However, Australian revenue declined by 8.8%, indicating potential challenges in profitability due to market and regulatory pressures.
CEO Peter Jackson expressed satisfaction with Flutter’s performance in 2023, attributing it to the company’s localized approach to Technology and product, combined with the scale advantages of the Flutter Edge. He highlighted the transformation of the Group’s earnings profile in the U.S. due to FanDuel’s positive full-year Adjusted EBITDA.
Overall, Flutter Entertainment’s impressive growth in core profits and strategic advancements in the U.S. market have positioned the company for continued success in the coming year. Investors and analysts alike will be closely monitoring Flutter’s performance as it navigates the dynamic landscape of the global gaming industry.
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