Flutter Q3 Results Easily Top Wall Street Estimates
Shares of Flutter Entertainment (NYSE: FLUT) rallied in extended trading on Tuesday after the gaming company reported third-quarter results that soundly beat Wall Street forecasts.
The FanDuel parent said it earned 43 cents per share on revenue of $3.25 billion during the July through September period. That earnings per share figure isn’t based on generally accepted accounting principles (GAAP). Analysts expected Flutter to post earnings of 23 cents on sales of less than $3.20 billion. In the US, where FanDuel is one of the largest online sportsbook operators, Flutter benefited from a strong start to the 2024 NFL season.
In the US, we had a fantastic start to the new NFL season with peak wagers per minute already higher than Super Bowl LVII. Our proprietary product offering continued to drive strong parlay penetration as well as a step up in live betting handle,” observed CEO Peter Jackson in a statement.
Flutter’s US third-quarter results were buoyed by average monthly player (AMP) growth of 28%, as well as by 10% year-over-year growth in customer acquisition. The operator highlighted AMP growth of 23% in the states in which it launched mobile sports wagering prior to 2022, and an increase of 37% in the states in which it went live in 2022 and 2023.
Flutter Tightens FanDuel Guidance
Flutter tightened its 2024 guidance for FanDuel, following suit with some rivals that cited bettors beating the house in October. The company trimmed the mid-points of its EBITDA and revenue forecasts by 4% and 1%, respectively.
The Dublin-based operator now expects its US business to post fourth-quarter sales of $6.05 billion to $6.25 billion and EBITDA of $670 million to $750 million. That’s down from previous forecasts of revenue of $6.05 billion to $6.35 billion and EBITDA of $680 million to $800 million. Still, even at the midpoints of the newly introduced estimates, Flutter expects FanDuel to notch fourth-quarter revenue and EBITDA growth of 40% and 206%, respectively.
