Shares of FanDuel parent Flutter Entertainment rose — and those of rival DraftKings fell — on news of a profitable second quarter of 2024. Flutter posted a profit of $297 million on revenue of $3.6 billion.
Cash flow was $738 million, with a 20.4 percent margin, as earnings per share hit $1.45. Free cash flow was $171 million and the company’s leverage ratio reached two times EBITDA.
United States-derived revenue grew 39 percent, helped by 25 percent market share in igaming. Also contributing was online sports betting in North Carolina, where Flutter executives reported a 59 percent market share.
Revenues in the United Kingdom and Ireland were up 10 percent, fueled by the Euro soccer tournament and favorable sporting outcomes overall. Australian results were reported to be “in line with expectations,” despite a 10 percent decline in horse-racing win.
Profit rose by $233 million from the second quarter of 2023 and cash flow was up by 17 percent overall, 51 percent in the U.S. alone.
Flutter raised its earnings guidance for the year, emboldened by the second-quarter results. It is now projecting revenue increases of 20 percent and cash flow growth of 34 percent.
Most of the revenue growth will be international. U.S. numbers are forecast to tick up three percent, to $6.2 billion for the year, while American cash flow is anticipated to grow four percent to $740 million, despite a $50 million impact from raised taxes in Illinois.
Flutter CEO Peter Jackson stated, “Our U.S. performance was excellent in new and existing states, reflecting our disciplined approach to customer acquisition and our best-in-class product, which offers our sports book customers the best pricing in the market. … The returns we’re seeing give us the confidence to continue driving customer acquisition in the second half, building a bigger business, which bodes well for 2025 and beyond.”
