Flutter Entertainment has successfully navigated a transformative 2024, solidifying its position as a leader in the global gaming and betting market. The company’s robust strategy and execution have yielded a significant uptick in both revenue and customer engagement, reinforcing its dominance, particularly in the U.S. with FanDuel, and expanding its influence across key international markets.

Comprehensive Financial and Operational Highlights

In 2024, Flutter saw its adjusted player metrics (AMPs) increase by 13%, while revenue surged by 19%, signaling strong market acceptance and customer growth. Notably, FanDuel not only maintained its lead in the U.S. sportsbook sector but also climbed to the top in iGaming. The year was marked by a substantial 113% rise in net income and a 26% increase in Adjusted EBITDA, as the company’s U.S. operations scaled efficiently.

Flutter’s financial health was further bolstered by exceptional cash flow management, with a net cash increase from operating activities surpassing $0.7 billion year-over-year. The company’s strategic financial maneuvers included reducing its leverage ratio from 3.1x to 2.2x and launching a share repurchase program, returning $121 million to shareholders in the fourth quarter alone, with plans to buy back up to $1 billion in shares in 2025.

The fourth quarter of 2024 set a strong pace for Flutter, with group AMPs rising by 7%, and revenue up by 14%. The period saw a dramatic 117% increase in net income, boosted partly by non-cash items like acquired intangibles amortization. Adjusted EBITDA saw a modest 4% increase, reflecting robust underlying momentum slightly offset by less favorable sports results.

CEO Peter Jackson commented on the year’s success, stating in the company’s press release (pdf), “I am proud of the progress we made during 2024 as we delivered against our strategic priorities and enhanced our leadership positions.”

Looking ahead to 2025, Flutter is poised for continued growth with promising early indicators. The company has already experienced a neutral impact from early sports results, with a notable positive outcome from Super Bowl LIX. This momentum is underpinned by Flutter’s comprehensive strategy, which includes expanding in existing U.S. states and preparing for launches in new territories like Missouri and Alberta, Canada.

Global expansion and diversified growth:

Outside the U.S., Flutter has made significant strides, particularly in the UK and Italy, where its market presence has been fortified through first-to-market product innovations and strategic acquisitions, such as those of NSX in Brazil and Snai in Italy. These efforts are part of Flutter’s broader strategy to consolidate and invest in local heroes, driving revenue growth of 18% in these segments.

In Australia, despite expected market declines, player engagement trends have remained positive, showcasing the resilience and adaptability of Flutter’s offerings in varying market conditions.

Flutter’s proactive approach to expansion and innovation is evident in its acquisition strategy and regulatory adaptations. The anticipated regulatory changes, especially in the prediction markets and sports betting sectors, present both challenges and opportunities, which Flutter is strategically positioned to navigate.

Flutter has set ambitious targets for 2025, with projected revenue growth of 13% and a 34% increase in Adjusted EBITDA at the midpoint. These projections are supported by strong performance in existing markets and planned expansions, which are expected to initially impact revenue negatively but are seen as strategic investments in long-term growth.

Analysts remain optimistic about Flutter’s trajectory, citing its effective market strategies and innovative product offerings as key drivers of its continued success in regulated markets. The company’s ability to execute strategic acquisitions and maintain a strong financial position while expanding its market share underscores its capacity to sustain growth and shareholder value in a competitive landscape.