Dual-listed Flutter Entertainment PLC (FLUT) (GB:FLTR) raised its outlook for 2024 after reporting a 20% year-over-year surge in its Q2 revenue to $3.6 billion. Following the results yesterday, Flutters’ NYSE-listed shares gained around 10% while its shares in London fell 0.20%.
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Flutter Entertainment is a sports betting and gaming company that owns brands like Paddy Power, PokerStars, and Betfair. The company generates most of its profits from the U.S. and moved its primary listing to NYSE in May 2024.
Flutter’s Strong Q2 Results
In the second quarter, Flutter’s average monthly players (AMP) grew by 17% year-over-year to 14.34 million. In the U.S., AMP and revenue jumped by 27% and 39% year-over-year, respectively, as FanDuel maintained its top position in the region. FanDuel is a leading American sports betting company, owned by Flutter Entertainment.
The group, excluding the U.S., achieved strong AMP and revenue growth of 15% and 10%, respectively.
Flutter’s net income grew by 364% to $297 million, driven by strong revenue and a 610 basis points impressive jump in the net income margin. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) increased by 17% to $738 million.
In addition to the results, the company announced that it would not impose a surcharge on customers in high-tax U.S. states. This move is in response to rival firm DraftKings’ (DKNG) decision to abandon similar plans. Earlier in August, DraftKings introduced a surcharge for customers in high-tax states, which led to a drop in its shares.
Flutter’s Upgraded Outlook
Flutter now expects its adjusted EBITDA to be between $680 million and $800 million in the U.S., up from the previous forecast of $635 million and $785 million. Additionally, the company’s adjusted EBITDA for markets excluding the U.S. is now expected in the range of $1.69 billion to $1.85 billion, compared to the prior outlook of $1.63 billion to $1.83 billion.
In terms of revenue, the company expects $6.05 billion to $6.35 billion from the U.S. in 2024. Meanwhile, other markets are expected to generate $7.85 billion to $8.15 billion in revenues. These figures are higher than the previous revenue forecast of $5.8 billion to $6.2 billion for the U.S. and $7.65 billion to $8.05 billion for other markets.
Are Flutter Shares a Good Buy?
Post-results, Jefferies and Craig-Hallum assigned Buy ratings on FLTR stock. Jefferies predicts 50% upside potential in the share price, driven by the company’s second-quarter results. Analyst James Wheatcroft from Jefferies is confident about the company’s position in the U.S. market, which is driving strong momentum for the business.
According to TipRanks consensus, FLTR stock has received a Strong Buy rating based on 13 Buy and two Hold recommendations. The Flutter share price target is 19,128.15p, which is 30.7% above the current level.
