©Reuters. Flutter Entertainment (FLUT) rises on 30% core profit forecast
Flutter Entertainment (FLUT) stock rose more than 2% in pre-market trading on Tuesday after the company said it expects core earnings to increase 30% this year due to a significant expansion of its U.S. operations. .
This performance is in line with market expectations, according to Jefferies analysts.
The company expects U.S. core profits to reach between $635 million and $785 million, up from $167 million last year and the first time the company has turned a profit in the U.S. since sports betting was lifted in 2018. It will be 2018.
Internationally, Flutter expects core profits to be between $1.63 billion and $1.83 billion, compared to $1.71 billion in 2023, meeting previous forecasts.
Flutter has set full-year 2024 guidance, with group revenue expected to increase by 17.5% and incremental adjusted EBITDA to increase by 30.2% at the midpoint of the forecast.
Specifically, the company expects U.S. revenue to be between $5.8 billion and $6.2 billion, representing approximately 36.3% year-over-year growth at the midpoint.
The company detailed its fourth quarter earnings in early January, with group revenue up 23% in the first 11 weeks of 2024, particularly in the U.S., driven by record engagement at February's Super Bowl. reported an increase of 56%.
For the full year 2023, Flutter reported a net loss of $6.89 per share and revenue of $11.79 billion.
Looking at the revenue trends, Flutter's international division grew by 3%, and in the UK and Ireland by 17%, increasing its market share to 30%. However, market and regulatory pressures are expected to further challenge profitability, with Australian revenue down 8.8%.
“Flutter delivered strong performance in 2023 as we continued to execute on our strategy,” said CEO Peter Jackson.
“This was supported by Flutter Edge's localized approach to technology and products, combined with unique economies of scale. As expected, FanDuel achieved positive U.S. full-year adjusted EBITDA for the first time; ’s number one position has transformed the Group’s earnings profile in 2023.”