Flutter losses widen on one-off costs but revenues boosted by US

26th Mar 2024 09:24

(Sharecast News) - Paddy Power owner Flutter Entertainment posted a widening of its full-year losses on Tuesday due to one-off costs, but revenue surged and the company guided to 30% growth in 2024 core profit thanks to a strong performance in the US.

In the year to the end of December 2023, full-year losses widened to $1.2bn from $370m a year earlier as it incurred non-cash charges of $1.7bn. This included a $725m PokerStars trademark impairment and $791m acquired intangibles amortisation.

Group revenue jumped 24.6% to $11.8bn amid significant growth in the US, which saw a 40.7% increase and the first year of positive adjusted EBITDA. Flutter said FanDuel was a key driver of this growth.

Excluding the US, revenue was up 16.4%, driven by a strong performance in UK and Ireland and in the company's "Consolidate and Invest" international markets.

Flutter said it also benefited from the full-year consolidation of the Sisal business bought in 2022, which generated $1.2bn in revenue compared with $465m in 2022.

"This was partly offset by the impact of softer racing market conditions in Australia combined with a reduced level of Australian player engagement compared with the prior year, following easing of Covid-19 restrictions," it said.

Flutter introduced guidance for 2024, saying it now expects implied group revenue growth of 17.5% and further adjusted EBITDA growth of 30.2% at the midpoint.

Chief executive Peter Jackson said: "Flutter delivered a strong 2023 performance as we continued to deliver on our strategy. This was underpinned by a localised approach to technology and product coupled with the unique scale advantages of the Flutter Edge.

"As anticipated, our number one position in the US has transformed the group's earnings profile during 2023 as FanDuel delivered a positive US full year adjusted EBITDA for the first time."

At 0920 GMT, the shares were up 1.7% at 17,585p.