Flutter Entertainment delivered a blockbuster 2024, with profits more than doubling thanks to the strength of its FanDuel brand. The company reported a 113% surge in annual profit, fueled by double-digit revenue growth and increased market dominance in the U.S. sports betting and iGaming sectors.
FanDuel Drives Record Revenue Growth
Revenue was up across the board for Flutter. The fourth quarter saw a 14% increase, while full-year revenue climbed 19%. FanDuel remained the engine behind these gains, solidifying its lead in the competitive U.S. gambling market.
Average monthly players (AMPs) on FanDuel rose 7% in the final quarter and 13% over the year. Despite a tricky NFL season, the company expanded its structural gross revenue margin to 14.5%. More impressively, iGaming revenue skyrocketed by 43%, showing FanDuel’s ability to capture more casual and high-value players.
Strong Super Bowl Performance Offsets NFL Challenges
The NFL season presented its fair share of challenges, but Flutter navigated them well. While betting patterns during the season impacted revenue, a successful Super Bowl campaign helped balance the scales.
- The company’s diversified sports offering softened the blow of unpredictable NFL outcomes.
- FanDuel’s innovative betting features kept engagement high despite seasonal fluctuations.
- Increased adoption of online casino gaming helped offset volatility in sports betting.
With FanDuel firmly entrenched as the top sports betting brand in the U.S., Flutter remains confident about sustaining momentum in 2025.
Cash Flow and Share Buybacks Boost Shareholder Value
Profitability gains translated directly into stronger free cash flow. The company generated $473 million in free cash flow in the fourth quarter alone—a 175% increase. For the full year, free cash flow jumped 181% to $941 million.
This financial strength allowed Flutter to initiate a significant share buyback program. The company aims to return up to $1 billion to shareholders in 2025. Investors welcomed this move as a sign of confidence in continued growth.
Expansion Plans: Missouri, Alberta, and Beyond
Looking ahead, Flutter is eyeing new markets. FanDuel is gearing up for a late 2025 launch in Missouri and an early 2026 debut in Alberta, Canada. These moves come with strategic investments:
| Market | Expected Launch | Investment |
|---|---|---|
| Missouri | Late 2025 | $80 million |
| Alberta | Early 2026 | $10 million |
Expanding into these regions aligns with Flutter’s strategy of targeting high-growth opportunities while strengthening its presence in regulated markets.
Tax Hikes and Regulatory Challenges
It wasn’t all smooth sailing for Flutter in 2024. A tax increase in Illinois took a $50 million bite out of profits. However, executives remain optimistic, expecting to mitigate at least half of that impact in 2025.
Regulatory shifts in key markets remain a concern, but Flutter has proven adept at adapting. The company’s ability to adjust pricing, optimize promotions, and expand into new territories helps counterbalance these headwinds.
Global Growth Strategy Paying Off
While FanDuel dominates headlines, Flutter’s international expansion is another key storyline. The company saw progress across multiple markets, including:
- United Kingdom & Ireland: Stable performance despite economic pressures.
- Italy & Turkey: Steady market penetration with strong brand presence.
- India & Georgia: Emerging opportunities with long-term potential.
- Brazil: A major focus, with the NSX acquisition expected to push Flutter’s market share to 11% by mid-2025.
Flutter’s acquisition of MaxBet and its push into Brazil highlight a larger strategy: identifying and nurturing “local heroes”—brands that already have a strong regional presence but can benefit from Flutter’s resources and expertise.
CEO Confident in Future Growth
CEO Peter Jackson expressed optimism about Flutter’s trajectory. He emphasized FanDuel’s market leadership in the U.S. and reiterated the company’s commitment to seizing new opportunities in both regulated gambling and emerging prediction markets.
As Flutter heads into 2025, the company’s formula seems clear: strong U.S. performance, strategic global expansion, and disciplined financial management. With FanDuel at the forefront, the momentum shows no signs of slowing down.
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