Flutter lowers 2024 U.S. revenue projections amid disappointing betting trends
Flutter Entertainment, owner of American sportsbook FanDuel, has downgraded its U.S. 2024 revenue and EBITDA guidance after twice increasing it during the year. Ahead of releasing the financial results for the full year of 2024, the company cited disappointment in short-term sports betting results from one of the most bettor-friendly NFL seasons on record.
Meanwhile, favorites have been winning at unusually high rates—an indicator closely correlated to operator margins, for good measure. As a result, Flutter changed the 2024 U.S. revenue outlook, now anticipating revenues of US$5.78 billion, or US$370 million below the previous guidance midpoint.
This revision shows an adjusted EBITDA estimate of US$505 million, a US$205 million reduction from the results predicted previously. Revisions reflect a US$438 million negative GGR impact from the current estimate from November 12 to December 31. The Group said reductions include a negative revenue of US$390 million and Adjusted EBITDA of US$260 million.
Flutter said the quarter’s net revenue margin for the sportsbook was 6.6%, influenced by structural margins of 14.5%, adverse sports results, and decreased promotional spending year over year. The business updated its guidance, saying fourth-quarter revenue is expected to reach US$1.59 billion, while adjusted EBITDA should come in at US$161 million.
The company believes these results are transitory and do not detract from the long-term growth strategy it shared with investors during Investor Day last September. Flutter added that it is optimistic about its future growth drivers and trajectory and declared its non-U.S. growth had been stronger than anticipated.
The updated forecasts arrived as Flutter continued its share repurchase program of up to US$5 billion. A comprehensive update will follow in March, including Q4 2024 earnings and guidance for the balance of the year.
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