Flutter Entertainment’s stock price increases following announcement of 30% core profit forecast, reports Investing.com

Flutter Entertainment’s stock price increases following announcement of 30% core profit forecast, reports Investing.com

© Reuters. Flutter Entertainment (FLUT) Rises on Base Earnings Guidance of 30%

Shares of Flutter Entertainment (FLUT) rose more than 2% premarket Tuesday after the company said it expects 30% growth in core earnings for the year, propelled by significant expansion in its operations in the United States.

This performance corresponds to market expectations, according to Jefferies analysts.

The company expects core U.S. profits to reach between $635 million and $785 million, up from $167 million last year, marking its first profitable year in the U.S. following the 2018 lifting of the ban on sport bets.

Internationally, Flutter forecasts core earnings ranging from $1.63 billion to $1.83 billion, up from $1.71 billion in 2023, in line with its previous forecast.

Flutter set its full-year 2024 guidance, showing an expected increase in group revenue of 17.5% and an increase in further adjusted EBITDA of 30.2% at the midpoint of the guidance.

Specifically, the company expects its U.S. revenue to be between $5.8 billion and $6.2 billion, representing year-over-year growth of approximately 36.3%. mid Road.

The company, which detailed its fourth quarter revenue earlier in January, reported a 23% increase in its group revenue for the first 11 weeks of 2024, with a notable rise of 56% in United States, fueled by record engagement during February’s Super Bowl.

For the full fiscal year 2023, Flutter reported a net loss per share of $6.89 on revenue of $11.79 billion.

Revenue trends show an increase of 3% in Flutter’s international segment and 17% in the UK and Ireland, bringing its market share to 30%. However, Australian revenue fell 8.8%, with expectations of further profitability challenges due to market and regulatory pressures.

“Flutter delivered a strong performance in 2023 while continuing to execute on our strategy,” said CEO Peter Jackson.

“This builds on a localized approach to technology and products, combined with the unique scale advantages of Flutter Edge. As expected, our number one position in the US transformed the Group’s earnings profile in 2023 as FanDuel generated positive adjusted EBITDA in the US for the first time for the full year.

Source Reference

Latest stories