Ireland |
98-1782229 |
|||||
(State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) |
|||||
290 Park Ave South 14th Floor New York, New York |
10010 |
|||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class |
Trading Symbol(s) |
Name of Each Exchange on which Registered | ||
Ordinary Shares, nominal value of €0.09 per share | FLUT | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
TABLE OF CONTENTS
Page
i
EXPLANATORY NOTE
Flutter Entertainment plc, a public limited company incorporated under the laws of Ireland, qualifies as a foreign private issuer in the United States for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Flutter voluntarily has chosen to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K with the United States Securities and Exchange Commission (“SEC”) instead of filing on the reporting forms available to foreign private issuers.
Flutter has moved its operational headquarters to New York. Given changes in the location of its executive leadership and its board of directors, Flutter has ceased to qualify as a foreign private issuer at the end of its second fiscal quarter of 2024 and will be required to file on the reporting forms specified for domestic filers beginning on the first day of its next fiscal year.
CERTAIN TERMS
Unless otherwise specified or the context otherwise requires, the terms “Flutter,” the “Company,” the “Group,” “we,” “us” and “our” each refer to Flutter Entertainment plc and its subsidiaries.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited, to statements related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believe(s),” ”expect(s),” “potential,” “continue(s),” “may,” “will,” “should,” “could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,” “plan(s),” “estimate(s),” “anticipates,” “projection,” “goal,” “target,” “aspire,” “will likely result,” and or the negative version of these words or other comparable words of a future or forward-looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Such factors include, among others:
• | Flutter’s ability to effectively compete in the global entertainment and gaming industries; |
• | Flutter’s ability to retain existing customers and to successfully acquire new customers; |
• | Flutter’s ability to develop new product offerings; |
• | Flutter’s ability to successfully acquire and integrate new businesses; |
• | Flutter’s ability to maintain relationships with third-parties; |
• | Flutter’s ability to maintain its reputation; |
• | Public sentiment towards online betting and iGaming generally; |
• | The potential impact of general economic conditions, including inflation, rising interest rates and instability in the banking system, on Flutter’s liquidity, operations and personnel; |
• | Flutter’s ability to obtain and maintain licenses with gaming authorities; |
• | Adverse changes to the regulation of online betting and iGaming; |
• | The failure of additional jurisdictions to legalize and regulate online betting and iGaming; |
• | Flutter’s ability to comply with complex, varied and evolving U.S. and international laws and regulations relating to its business; |
• | Flutter’s ability to raise financing in the future; |
• | Flutter’s success in retaining or recruiting officers, key employees or directors; |
• | Litigation and the ability to adequately protect Flutter’s intellectual property rights; |
ii
• | The impact of data security breaches or cyber-attacks on Flutter’s systems; and |
• | Flutter’s ability to remediate material weaknesses in its internal control over financial reporting. |
Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the SEC on March 26, 2024 and other periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Website and Social Media Disclosure
We use our website (www.flutter.com) and at times our corporate X account (@FlutterPLC) and LinkedIn (www.linkedin.com/company/flutter-entertainment-plc) as well as other social media channels to distribute company information. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. The contents of our website and social media channels are not, however, a part of this Quarterly Report on Form 10-Q.
iii
As of June 30, 2024 |
As of December 31, 2023 | |||||||
ASSETS |
||||||||
CURRENT ASSETS: |
||||||||
Cash and cash equivalents |
$ | 1,526 | $ | 1,497 | ||||
Cash and cash equivalents – restricted |
25 | 22 | ||||||
Player deposits – cash and cash equivalents |
1,684 | 1,752 | ||||||
Player deposits – investments |
174 | 172 | ||||||
Accounts receivable, net |
75 | 90 | ||||||
Prepaid expenses and other current assets |
441 | 443 | ||||||
|
|
|
|
|
| |||
TOTAL CURRENT ASSETS |
3,925 |
3,976 |
||||||
Investments |
7 | 9 | ||||||
Property and equipment, net |
480 | 471 | ||||||
Operating lease right-of-use |
456 | 429 | ||||||
Intangible assets, net |
5,664 | 5,881 | ||||||
Goodwill |
13,679 | 13,745 | ||||||
Deferred tax assets |
29 | 24 | ||||||
Other non-current assets |
82 | 100 | ||||||
|
|
|
|
|
| |||
TOTAL ASSETS |
$ |
24,322 |
$ |
24,635 |
||||
|
|
|
|
|
| |||
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY |
||||||||
CURRENT LIABILITIES: |
||||||||
Accounts payable |
$ | 234 | $ | 240 | ||||
Player deposit liability |
1,775 | 1,786 | ||||||
Operating lease liabilities |
124 | 123 | ||||||
Long-term debt due within one year |
53 | 51 | ||||||
Other current liabilities |
2,192 | 2,326 | ||||||
|
|
|
|
|
| |||
TOTAL CURRENT LIABILITIES |
4,378 |
4,526 |
||||||
Operating lease liabilities – non-current
|
374 | 354 | ||||||
Long-term debt |
6,737 | 7,005 | ||||||
Deferred tax liabilities |
737 | 802 | ||||||
Other non-current liabilities |
612 | 580 | ||||||
|
|
|
|
|
| |||
TOTAL LIABILITIES |
$ |
12,838 |
$ |
13,267 |
||||
|
|
|
|
|
| |||
COMMITMENTS AND CONTINGENCIES (Note 16) |
||||||||
REDEEMABLE NON-CONTROLLING INTERESTS |
1,432 |
1,152 |
||||||
SHAREHOLDERS’ EQUITY |
||||||||
Ordinary share (Authorized 300,000,000 shares of €0.09 ($0.10) par value each; issued June 30, 2024: 177,681,906 shares; December 31, 2023: 177,008,649 shares) |
$ | 36 | $ | 36 | ||||
Shares held by employee benefit trust, at cost June 30, 2024: 0 shares, December 31, 2023: 0 shares |
— | — | ||||||
Additional paid-in capital |
1,503 | 1,385 | ||||||
Accumulated other comprehensive loss |
(1,674 | ) | (1,483 | ) | ||||
Retained earnings |
10,018 | 10,106 | ||||||
|
|
|
|
|
| |||
Total Flutter Shareholders’ Equity |
9,883 |
10,044 |
||||||
Non-controlling interests |
169 | 172 | ||||||
|
|
|
|
|
| |||
TOTAL SHAREHOLDERS’ EQUITY |
10,052 |
10,216 |
||||||
|
|
|
|
|
| |||
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTSAND SHAREHOLDERS’ EQUITY |
$ |
24,322 |
$ |
24,635 |
||||
|
|
|
|
|
|
Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Revenue |
$ | 3,611 | $ | 3,001 | $ | 7,008 | $ | 5,919 | ||||||||
Cost of Sales |
(1,835 | ) | (1,491 | ) | (3,628 | ) | (3,032 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Gross profit |
1,776 |
1,510 |
3,380 |
2,887 |
||||||||||||
Technology, research and development expenses |
(216 | ) | (176 | ) | (406 | ) | (344 | ) | ||||||||
Sales and marketing expenses |
(746 | ) | (667 | ) | (1,627 | ) | (1,549 | ) | ||||||||
General and administrative expenses |
(445 | ) | (445 | ) | (854 | ) | (787 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Operating profit |
369 |
222 |
493 |
207 |
||||||||||||
Other (expense) income, net |
89 | 10 | (85 | ) | (35 | ) | ||||||||||
Interest expense, net |
(108 | ) | (82 | ) | (220 | ) | (174 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Income (loss) before income taxes |
350 |
150 |
188 |
(2 |
) | |||||||||||
Income tax expense |
(53 | ) | (86 | ) | (68 | ) | (45 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) |
297 |
64 |
120 |
(47 |
) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Net income (loss) attributable to non-controlling interests and redeemable non-controlling interests |
18 | 2 | 22 | (7 | ) | |||||||||||
Adjustment of redeemable non-controlling interest to redemption value |
18 | (5 | ) | 33 | (5 | ) | ||||||||||
Net income (loss) attributable to Flutter shareholders |
261 | 67 | 65 | (35 | ) | |||||||||||
Earnings (loss) per share |
||||||||||||||||
Basic |
1.47 | 0.38 | 0.37 | (0.20 | ) | |||||||||||
Diluted |
1.45 | 0.37 | 0.36 | (0.20 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other comprehensive income (loss), before tax: |
||||||||||||||||
Effective portion of changes in fair value of cash flow hedges |
(10 | ) | (16 | ) | 13 | (76 | ) | |||||||||
Fair value of cash flow hedges transferred to the income statement |
12 | 41 | (2 | ) | 84 | |||||||||||
Foreign exchange gain on net investment hedges |
50 | 8 | 29 | 12 | ||||||||||||
Foreign exchange (loss) gain on translation of the net assets of foreign currency denominated entities |
(60 | ) | 97 | (245 | ) | 275 | ||||||||||
Fair value movements on available for sale debt instruments |
1 | — | — | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Other comprehensive (loss) income |
(7 |
) |
130 |
(205 |
) |
295 |
||||||||||
Other comprehensive (loss) income attributable to Flutter shareholders |
(5 | ) | 101 | (191 | ) | 240 | ||||||||||
Other comprehensive (loss) income attributable to non-controlling interest and redeemable non-controlling interest |
(2 | ) | 29 | (14 | ) | 55 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total comprehensive (loss) income |
$ |
290 |
$ |
194 |
$ |
(85 |
) |
$ |
248 |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
Ordinary share |
Shares held by employee benefit |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Redeemable non-
controlling interests |
|
Shares |
Amount |
Shares |
Amount |
|
Additional paid-in
capital |
|
Accumulated Other Comprehensive Income/(Loss) |
Retained earnings |
|
Total Flutter Shareholders’ Equity |
|
Non- controlling interests |
|
Total Equity |
|
Net Income (Loss) |
|
||||||||||||||||||||||||||||
Balance as of December 31, 2023 |
$ |
1,152 |
177,008,649 |
$ |
36 |
— |
— |
$ |
1,385 |
$ |
(1,483 |
) |
$ |
10,106 |
$ |
10,044 |
$ |
172 |
$ |
10,216 |
||||||||||||||||||||||||||||
Net income (loss) |
15 | — | — | — | — | — | — | (196 | ) | (196 | ) | 4 | (192 | ) | (177 | ) | ||||||||||||||||||||||||||||||||
Adjustment of redeemable non-controlling interest to fair value |
216 | — | — | — | — | — | — | (216 | ) | (216 | ) | — | (216 | ) | ||||||||||||||||||||||||||||||||||
Shares issued on exercise of employee share options | — | 436,546 | 0 | — | — | 14 | — | — | 14 | — | 14 | |||||||||||||||||||||||||||||||||||||
Equity-settled transactions – expense recorded in the income statement | — | — | — | — | — | 40 | — | — | 40 | — | 40 | |||||||||||||||||||||||||||||||||||||
Acquisition of redeemable non-controlling interests | 89 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) |
(10 | ) | — | — | — | — | — | (186 | ) | — | (186 | ) | (2 | ) | (188 | ) | ||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 |
$ |
1,462 |
177,445,195 |
$ |
36 |
— |
$ |
— |
$ |
1,439 |
$ |
(1,669 |
) |
$ |
9,694 |
$ |
9,500 |
$ |
174 |
$ |
9,674 |
|||||||||||||||||||||||||||
Net income |
33 | — | — | — | — | — | — | 261 | 261 | 3 | 264 | 297 | ||||||||||||||||||||||||||||||||||||
Adjustment of redeemable non-controlling interest to fair value | (63 | ) | — | — | — | — | — | — | 63 | 63 | — | 63 | ||||||||||||||||||||||||||||||||||||
Shares issued on exercise of employee share options | — | 236,711 | 0 | — | — | 7 | — | — | 7 | — | 7 | |||||||||||||||||||||||||||||||||||||
Equity-settled transactions – expense recorded in the income statement | — | — | — | — | — | 57 | — | — | 57 | — | 57 | |||||||||||||||||||||||||||||||||||||
Dividend distributed to non-controlling interests |
— | — | — | — | — | — | — | — | — | (6 | ) | (6 | ) | |||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) |
— | — | — | — | — | — | (5 | ) | — | (5 | ) | (2 | ) | (7 | ) | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2024 |
$ |
1,432 |
177,681,906 |
$ |
36 |
— |
$ |
— |
$ |
1,503 |
$ |
(1,674 |
) |
$ |
10,018 |
$ |
9,883 |
$ |
169 |
$ |
10,052 |
|||||||||||||||||||||||||||
Ordinary share |
Shares held by employee benefit |
|||||||||||||||||||||||||||||||||||||||||||||||
|
Redeemable non-
controlling interests |
|
Shares |
Amount |
Shares |
Amount |
|
Additional paid-in
capital |
|
Accumulated Other Comprehensive Income/(Loss) |
Retained earnings |
|
Total Flutter Shareholders’ Equity |
|
|
Non- controlling interests |
|
Total Equity |
|
Net Income (Loss) |
|
|||||||||||||||||||||||||||
Balance as of December 31, 2022 |
$ |
929 |
176,091,902 |
$ |
36 |
1,396 |
$ |
(1 |
) |
$ |
1,192 |
$ |
(1,782 |
) |
$ |
11,590 |
$ |
11,035 |
$ |
156 |
$ |
11,191 |
||||||||||||||||||||||||||
Net (loss) |
(7 | ) | — | — | — | — | — | — | (102 | ) | (102 | ) | (2 | ) | (104 | ) | (111 | ) | ||||||||||||||||||||||||||||||
Adjustment of redeemable non-controlling interest to fair value |
125 | — | — | — | — | — | — | (125 | ) | (125 | ) | — | (125 | ) | ||||||||||||||||||||||||||||||||||
Shares issued on exercise of employee share options | — | 330,483 | 0 | — | — | 1 | — | — | 1 | — | 1 | |||||||||||||||||||||||||||||||||||||
Equity-settled transactions – expense recorded in the income statement | — | — | — | — | — | 32 | — | — | 32 | — | 32 | |||||||||||||||||||||||||||||||||||||
Other comprehensive income |
24 | — | — | — | — | — | 139 | — | 139 | 2 | 141 | |||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 |
$ |
1,071 |
176,422,385 |
$ |
36 |
1,396 |
$ |
(1 |
) |
$ |
1,225 |
$ |
(1,643 |
) |
$ |
11,363 |
$ |
10,980 |
$ |
156 |
$ |
11,136 |
||||||||||||||||||||||||||
Net (loss) income |
(8 | ) | — | — | — | — | — | — | 67 | 67 | 5 | 72 | 64 | |||||||||||||||||||||||||||||||||||
Adjustment of redeemable non-controlling interest to fair value |
60 | — | — | — | — | — | — | (60 | ) | (60 | ) | — | (60 | ) | ||||||||||||||||||||||||||||||||||
Shares issued on exercise of employee share options | — | 162,779 | 0 | — | — | 3 | — | — | 3 | — | 3 | |||||||||||||||||||||||||||||||||||||
Ordinary shares of the Company acquired by the Employee Benefit Trust | — | — | — | 825,400 | (166 | ) | — | — | — | (166 | ) | — | (166 | ) | ||||||||||||||||||||||||||||||||||
Equity-settled transactions – expense recorded in the income statement | — | — | — | — | — | 55 | — | — | 55 | — | 55 | |||||||||||||||||||||||||||||||||||||
Acquisition of redeemable non-controlling interests | (95 | ) | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | 25 | — | — | — | — | — | 101 | — | 101 | 4 | 105 | |||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 |
$ |
1,054 |
176,585,164 |
$ |
36 |
826,796 |
$ |
(167 |
) |
$ |
1,283 |
$ |
(1,542 |
) |
$ |
11,370 |
$ |
10,980 |
$ |
165 |
$ |
11,145 |
||||||||||||||||||||||||||
Six months ended June 30, |
||||||||
2024 |
2023 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income (loss) |
$ |
120 |
$ |
(47 |
) |
|||
Adjustments to reconcile net income (loss) to net cash from operating activities: |
||||||||
Depreciation and amortization |
569 |
601 |
||||||
Change in fair value of derivatives |
(22 |
) |
(12 |
) |
||||
Non-cash interest expense, net |
16 |
(4 |
) |
|||||
Non-cash operating lease expense |
65 |
67 |
||||||
Foreign currency exchange loss (gain) |
10 |
(224 |
) |
|||||
(Gain) loss on disposal |
(1 |
) |
1 |
|||||
Share-based compensation – equity classified |
97 |
87 |
||||||
Share-based compensation – liability classified |
3 |
21 |
||||||
Other expenses (net) |
95 |
117 |
||||||
Deferred taxes |
(83 |
) |
(192 |
) |
||||
Loss on extinguishment |
5 |
— |
||||||
Change in contingent consideration |
(3 |
) |
— |
|||||
Change in operating assets and liabilities: |
||||||||
Player deposits |
(2 |
) |
(5 |
) |
||||
Accounts receivable |
16 |
47 |
||||||
Other assets |
32 |
(59 |
) |
|||||
Accounts payable |
(46 |
) |
17 |
|||||
Other current liabilities |
(155 |
) |
101 |
|||||
Player deposit liability |
14 |
(462 |
) |
|||||
Operating leases liabilities |
(70 |
) | (62 |
) |
||||
Net cash provided by (used in) operating activities |
660 |
(8 |
) |
|||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchases of property and equipment |
(50 |
) |
(49 |
) |
||||
Purchases of intangible assets |
(97 |
) |
(79 |
) |
||||
Capitalized software |
(157 |
) |
(135 |
) |
||||
Acquisitions, net of cash acquired |
(132 |
) |
— |
|||||
Net cash used in investing activities |
(436 |
) |
(263 |
) |
||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Proceeds from issue of common stock upon exercise of options |
21 |
4 |
||||||
Proceeds from issuance of long-term debt (net of transactions costs) |
1,684 |
613 |
||||||
Repayment of long-term debt |
(1,929 |
) |
(711 |
) |
||||
Dividend distributed to non-controlling interests |
(6 |
) |
— |
|||||
Repurchase of common stock |
— | (166 |
) |
|||||
Net cash used in financing activities |
(230 |
) |
(260 |
) |
||||
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH |
(6 |
) |
(531 |
) |
||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — Beginning of period |
3,271 |
2,990 |
||||||
Foreign currency exchange (loss) gain on cash and cash equivalents |
(30 |
) |
139 |
|||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period: |
3,235 |
2,598 |
||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH comprise of: |
||||||||
Cash and cash equivalents |
$ |
1,526 |
$ |
1,020 |
||||
Cash and cash equivalents - restricted |
25 |
15 |
||||||
Player deposits - cash & cash equivalents |
1,684 |
1,563 |
||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH — End of period: |
$ |
3,235 |
$ |
2,598 |
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
||||||||
Interest paid |
231 |
210 |
||||||
Income taxes paid |
115 |
170 |
||||||
Operating cash flows from operating leases |
81 |
70 |
||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: |
||||||||
Right of use assets obtained in exchange for new operating lease liabilities |
74 |
40 |
||||||
Adjustments to lease balances as a result of remeasurement |
(3 |
) |
10 |
|||||
Business acquisitions (including contingent consideration) |
$ |
28 |
$ |
— |
• | U.S.; |
• | UK & Ireland (“UKI”); |
• | International; and |
• | Australia |
Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
($ in millions) |
2024 |
2023 |
2024 |
2023 |
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Revenue |
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U.S. |
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Sportsbook |
$ | 1,099 | $ | 781 | $ | 2,085 | $ | 1,540 | ||||||||
iGaming |
357 | 243 | 715 | 484 | ||||||||||||
Other |
71 | 73 | 137 | 144 | ||||||||||||
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U.S. segment revenue |
1,527 |
1,097 |
2,937 |
2,168 |
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UKI |
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Sportsbook |
451 | 401 | 862 | 777 | ||||||||||||
iGaming |
423 | 339 | 829 | 658 | ||||||||||||
Other |
54 | 49 | 98 | 90 | ||||||||||||
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UKI segment revenue |
928 |
789 |
1,789 |
1,525 |
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International |
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Sportsbook |
197 | 154 | 357 | 335 | ||||||||||||
iGaming |
574 | 540 | 1,174 | 1,093 | ||||||||||||
Other |
36 | 32 | 73 | 58 | ||||||||||||
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International segment revenue |
807 |
726 |
1,604 |
1,486 |
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Australia |
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Sportsbook |
349 | 389 | 678 | 740 | ||||||||||||
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Australia segment revenue |
349 |
389 |
678 |
740 |
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Total reportable segment revenue |
$ |
3,611 |
$ |
3,001 |
$ |
7,008 |
$ |
5,919 |
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Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
($ in millions) |
2024 |
2023 |
2024 |
2023 |
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U.S |
$ | 1,495 | $ | 1,087 | $ | 2,894 | $ | 2,170 | ||||||||
UK |
848 | 707 | 1,630 | 1,367 | ||||||||||||
Ireland |
76 | 80 | 153 | 158 | ||||||||||||
Australia |
349 | 389 | 678 | 740 | ||||||||||||
Italy |
371 | 332 | 736 | 701 | ||||||||||||
Rest of the world |
472 | 406 | 917 | 783 | ||||||||||||
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Total revenue |
$ |
3,611 |
$ |
3,001 |
$ |
7,008 |
$ |
5,919 |
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Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
($ in millions) |
2024 |
2023 |
2024 |
2023 |
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UKI |
$ | 293 | $ | 249 | $ | 561 | $ | 455 | ||||||||
U.S. |
260 | 172 | 286 | 119 | ||||||||||||
International |
156 | 145 | 329 | 294 | ||||||||||||
Australia |
74 | 108 | 157 | 193 | ||||||||||||
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Reportable segment adjusted EBITDA |
783 |
674 |
1,333 |
1,061 |
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Unallocated corporate overhead 1
|
(45 | ) | (41 | ) | (81 | ) | (76 | ) | ||||||||
Depreciation and amortization |
(272 | ) | (303 | ) | (569 | ) | (601 | ) | ||||||||
Share-based compensation expense |
(59 | ) | (64 | ) | (100 | ) | (110 | ) | ||||||||
Transaction fees and associated costs 2
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(16 | ) | (17 | ) | (45 | ) | (20 | ) | ||||||||
Restructuring and integration costs 3
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(22 | ) | (26 | ) | (45 | ) | (47 | ) | ||||||||
Other (expense) income, net |
89 | 10 | (85 | ) | (35 | ) | ||||||||||
Interest expense, net |
(108 | ) | (82 | ) | (220 | ) | (174 | ) | ||||||||
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Income (loss) before income taxes |
$ |
350 |
$ |
150 |
$ |
188 |
$ |
(2 |
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1. |
Unallocated corporate overhead includes shared technology, research and development, sales and marketing, and general and administrative expenses that are not allocated to specific segments. |
2. |
Comprises advisory fees related to implementation of internal controls, information system changes and other strategic advisory related to the change in the primary listing of the Group for the three and six months ended June 30, 2024 respectively. For the three and six months ended June 30, 2023 transaction fees and associated costs comprised advisory fees related to the proposed listing of Flutter’s ordinary shares in the U.S.. |
3. |
During the three and six months ended June 30, 2024, costs of $22 million and $45 million (three and six months ended June 30, 2023: $26 million and $47 million) primarily relate to various restructuring and other strategic initiatives to drive synergies. These actions include efforts to consolidate and integrate our technology infrastructure, back-office functions and relocate certain operations to lower cost locations. The costs primarily include severance expenses, advisory fees and temporary staffing cost. |
Three months ended June 30, |
Six months ended June 30, | |||||||||||||||
($ in millions) |
2024 |
2023 |
2024 |
2023 |
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Foreign exchange (loss) gain |
$ | (8 | ) | $ | 35 | $ | (11 | ) | $ | 71 | ||||||
Fair value gain on derivative instruments |
7 | 29 | 22 | 12 | ||||||||||||
Fair value gain on contingent consideration |
3 | — | 3 | — | ||||||||||||
Loss on settlement of long-term debt |
(5 | ) | — | (5 | ) | — | ||||||||||
Gain (loss) on disposal |
1 | (1 | ) | 1 | (1 | ) | ||||||||||
Fair value (loss) gain on Fox liability |
91 | (53 | ) | (93 | ) | (117 | ) | |||||||||
Fair value loss on investment |
— | — | (2 | ) | — | |||||||||||
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Total other (expense) income, net |
$ |
89 |
$ |
10 |
$ |
(85 |
) |
$ |
(35 |
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Three months ended June 30, |
Six months ended June 30, |
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($ in millions) |
2024 |
2023 |
2024 |
2023 |
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Interest and amortization of debt discount and expense on long-term debt, bank guarantees | $ | 122 | $ | 98 | $ | 248 | $ | 195 | ||||||||
Other interest expense |
2 | (2 | ) | 4 | (2 | ) | ||||||||||
Interest income |
(16 | ) | (14 | ) | (32 | ) | (19 | ) | ||||||||
Interest expense, net |
$ |
108 |
$ |
82 |
$ |
220 |
$ |
174 |
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Three months ended June 30, |
Six months ended June 30, |
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($ in millions except share and per share amounts) |
2024 |
2023 |
2024 |
2023 |
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Numerator |
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Net income (loss) |
297 | 64 | 120 | (47 | ) | |||||||||||
Net income (loss) attributable to non-controlling interests and redeemable non-controlling interests |
18 | 2 | 22 | (7 | ) | |||||||||||
Adjustment of redeemable non-controlling interest to redemption value |
18 | (5 | ) | 33 | (5 | ) | ||||||||||
Net income (loss) attributable to Flutter shareholder – basic and diluted |
261 | 67 | 65 | (35 | ) | |||||||||||
Denominator |
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Basic weighted average outstanding shares |
178 | 178 | 178 | 178 | ||||||||||||
Effective of dilutive stock awards |
2 | 2 | 2 | — | ||||||||||||
Diluted weighted average outstanding shares |
180 | 180 | 180 | 178 | ||||||||||||
Earnings (Loss) per share |
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Basic |
1.47 | 0.38 | 0.37 | (0.20 | ) | |||||||||||
Diluted |
1.45 | 0.37 | 0.36 | (0.20 | ) |
($ in millions) |
Gains and loss on Cash Flow Hedges |
Unrealized Gains and Losses on Available-
for- SaleDebt securities |
Foreign Currency Translation, net of Net Investment Hedges |
Total |
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Balance as of March 31, 2024 |
$ |
3 |
$ (2 |
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$ (1,670 |
) |
$ (1,669 |
) |
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Other comprehensive income (loss) before reclassifications |
(10 | ) | 1 | (8 | ) | (17 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss |
12 | — | — | 12 | ||||||||||||
Net current period other comprehensive income (loss) |
2 | 1 | (8 | ) | (5 | ) | ||||||||||
Balance as of June 30, 2024 |
$ |
5 |
$ (1 |
) |
$ (1,678 |
) |
$ (1,674 |
) |
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($ in millions) |
Gains and loss on Cash Flow Hedges |
Unrealized Gains and Losses on Available- for- Sale Debt securities |
Foreign Currency Translation, net of Net Investment Hedges |
Total |
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Balance as of December 31, 2023 |
$ |
(6 |
) |
$ |
(1 |
) |
$ |
(1,476 |
) |
$ |
(1,483 |
) |
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Other comprehensive income (loss) before reclassifications |
13 | — | (202 | ) | (189 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss |
(2 | ) | — | — | (2 | ) | ||||||||||
Net current period other comprehensive income (loss) |
11 | — | (202 | ) | (191 | ) | ||||||||||
Balance as of June 30, 2024 |
$ |
5 |
$ |
(1 |
) |
$ |
(1,678 |
) |
$ |
(1,674 |
) |
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($ in millions) |
Gains and loss on Cash Flow Hedges |
Unrealized Gains and Losses on Available- for- Sale Debt securities |
Foreign Currency Translation, net of Net Investment Hedges |
Total |
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Balance as of March 31, 2023 |
$ |
5 |
$ |
(5 |
) |
$ |
(1,643 |
) |
$ |
(1,643 |
) |
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Other comprehensive income (loss) before reclassifications |
(16 | ) | — | 76 | 60 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss |
41 | — | — | 41 | ||||||||||||
Net current period other comprehensive income |
25 | — | 76 | 101 | ||||||||||||
Balance as of June 30, 2023 |
$ |
30 |
$ |
(5 |
) |
$ |
(1,567 |
) |
$ |
(1,542 |
) |
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($ in millions) |
Gains and loss on Cash Flow Hedges |
Unrealized Gains and Losses on Available- for- Sale Debt securities |
Foreign Currency Translation, net of Net Investment Hedges |
Total |
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Balance as of December 31, 2022 |
$ |
22 |
$ |
(6 |
) |
$ |
(1,798 |
) |
$ |
(1,782 |
) |
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Other comprehensive income (loss) before reclassifications |
(76 | ) | 1 | 231 | 156 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss |
84 | — | — | 84 | ||||||||||||
Net current period other comprehensive income |
8 | 1 | 231 | 240 | ||||||||||||
Balance as of June 30, 2023 |
$ |
30 |
$ |
(5 |
) |
$ |
(1,567 |
) |
$ |
(1,542 |
) |
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($ in millions) |
As of |