Core Viewpoint - Flutter Entertainment plc has published its Annual Report on Form 10-K for the financial year ended December 31, 2024, and has filed it with the U.S. Securities and Exchange Commission [1] Group 1 - The company has also prepared a UK annual report that incorporates the Annual Report on Form 10-K, referred to as the Annual Report and Accounts 2024 [1] - The Annual Report and Accounts 2024 is available for public access at the specified URL and has been submitted to the UK National Storage Mechanism for inspection [1][2] - The Annual Report on Form 10-K and the Annual Report and Accounts 2024 can be accessed on the company's official website [2]

Financial Data and Key Metrics Changes - Flutter Entertainment reported a revenue growth of 19% and adjusted EBITDA of $482 million, which is 26% higher than the previous year [9][26] - The company generated a net income of $156 million, with earnings per share increasing by 5.59% to $0.45 [26][27] - Adjusted EPS, excluding certain fair value movements, increased by 67% due to a tax credit [27][28] Business Line Data and Key Metrics Changes - In the U.S., revenue increased by 14%, with adjusted EBITDA of $163 million, driven by a 43% growth in iGaming [29][30] - Sportsbook revenue grew by 8%, impacted by adverse sports results, while handle growth moderated to 12% [30][31] - International revenue grew by 14%, with UKI revenue up 20%, driven by strong sportsbook and iGaming performance [31][32] Market Data and Key Metrics Changes - The U.S. sportsbook GGR market share reached 43%, and iGaming GGR market share was 26% [10] - In the UKI market, Flutter increased its market share by 4 percentage points over the last two years [19] - Italy's Sisal brand saw online revenue growth of 41%, benefiting from favorable sports results [33] Company Strategy and Development Direction - Flutter aims to leverage its "Flutter Edge" to enhance product offerings and maintain market leadership, particularly in the U.S. [7][24] - The company plans to continue expanding into new markets, with acquisitions like Snai and NSX expected to enhance scale and diversification [9][24] - Flutter is focused on product innovation, including the launch of new features and loyalty programs to drive customer engagement [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. business's strength and the potential for continued customer acquisition [12][17] - The company is monitoring regulatory changes and potential tax increases in various states, believing it is well-positioned to mitigate impacts [18][22] - Flutter anticipates strong growth in 2025, with existing state revenue and adjusted EBITDA expected to grow by 33% and 176%, respectively [36][37] Other Important Information - Flutter's cash flow from operating activities increased by 67%, with free cash flow growth of 175% [34][35] - The company plans to repurchase up to $1 billion in shares across 2025 [36] - Flutter is on track to deliver $300 million in annualized cost savings by 2027 [44] Q&A Session Summary Question: Can you discuss the $90 million of investment losses in new states? - Management expects to launch Missouri in Q4 and Alberta in Q1 2026, with Missouri's costs around $80 million and Alberta's around $10 million [50][51] Question: What are the customer acquisition trends? - Management is pleased with customer acquisition opportunities and believes they can continue to grow the business [52] Question: What is the outlook for prediction markets? - Management sees potential in prediction markets but emphasizes the richness of their current sportsbook offerings [54] Question: How are customer acquisition trends between iGaming and sportsbook? - Management reports strong growth in iGaming, driven by product improvements and customer engagement [58] Question: What is the status of the Italian lottery bid? - Management is considering bidding for the lotto contract in Italy, evaluating the financial returns [63][64] Question: What are the early learnings from the Your Way product? - Early engagement with the Your Way product has been strong, with significant customization appealing to customers [71][72] Question: How does the company view handle growth in 2025? - Management does not obsess over handle growth, focusing instead on revenue and EBITDA, which are trending positively [98][100] Question: What is the impact of promotional reinvestment in the U.S.? - Management is disciplined in allocating promotional spending to ensure good returns, with a focus on customer acquisition [125][126] Question: Are there signs of consumer weakness in older U.S. states? - Management does not see any signs of consumer weakness and believes the business is resilient in economic downturns [132][133] Question: What is the strategy for media rights partnerships? - Management is thoughtful about media rights, leveraging their scale to negotiate favorable contracts [137]

Financial Performance - The company reported 13.9 million Average Monthly Players (AMPs) and $14,048 million in revenue for fiscal 2024[34]. - For fiscal 2024, 56% of revenue was derived from sportsbook, 40% from iGaming, and 4% from other products, with 91% of revenue generated from online businesses[36]. - The company’s revenue for fiscal 2024 increased by 19% compared to fiscal 2023, which had revenue of $11,790 million[54]. Revenue Breakdown - The U.S. division constituted $5,798 million (41%) of total revenue for fiscal 2024, with a 44% share of the online sports betting market and a 25% share of the iGaming market in states where FanDuel operates[46]. - The UKI division generated $3,598 million (26%) of total revenue for fiscal 2024, while the International division contributed $3,257 million (23%) and the Australia division $1,395 million (10%)[48][52][53]. Investments and Acquisitions - The company acquired a 51% controlling stake in MaxBet for $143 million, aiming to diversify internationally and expand its online offerings[50]. - The company invested $820 million in technology research and development in fiscal 2024, focusing on online sports betting and iGaming[61]. - In fiscal 2024, the company spent $3,205 million on sales and marketing across its four geographic divisions[60]. Market Presence and Operations - The company operates in over 100 countries, with the U.S. division being the fastest-growing segment[44]. - The company operates FanDuel retail sportsbook locations and offers iGaming products in multiple states, ensuring compliance with local regulations[83]. - The partnership with Boyd Gaming Corporation provides first skin access for online sports betting in various jurisdictions[81]. Regulatory Environment - As of December 31, 2024, 35 states have legalized retail sports betting, 30 states have legalized online sports betting, and 6 states have legalized iGaming in the U.S.[79]. - The UK Gambling Act review has led to new regulations, including a statutory levy on licensed operator revenue for gambling harm research, effective from April 2025[90]. - The Irish Gambling Act, enacted in October 2024, introduces significant reforms, including a new licensing framework expected to commence in 2025 or 2026[93]. Compliance and Risk Management - The company has a zero-tolerance approach to money laundering and fraud, implementing various compliance policies and monitoring customer activities[131]. - Compliance with local regulations is essential, as failure to adhere could result in monetary penalties and increased operating costs[122]. - The company employs risk management techniques for sportsbook bets, utilizing mathematical models and setting predefined limits for bet acceptance[578]. Workforce and Employment - As of December 31, 2024, the company had 27,345 employees across 27 countries, with a global employee turnover rate of 20%[135]. - Approximately 7,700 employees are part of the technology function, with 3,900 focused on software engineering[135]. Future Outlook and Strategic Plans - The company plans to update its reportable segments to U.S. and International in its quarterly report for the period ending March 31, 2025[35]. - The company is preparing to report against the EU Corporate Sustainability Reporting Directive, updating its materiality assessment for sustainability issues[140]. Financial Risks - A hypothetical 10% strengthening of the U.S. dollar could result in a $957 million positive translation adjustment in other comprehensive income[586]. - The company may enter into interest rate swaps in the future to manage interest rate risk on outstanding long-term debt[587]. - A 100-basis point increase in market interest rates would increase annual interest expense on long-term debt by $31 million for December 31, 2024, $37 million for December 31, 2023, and $47 million for December 31, 2022[587].

Financial Performance - Flutter Entertainment plc announced preliminary financial information for Q4 and full year 2024 on January 7, 2025[4]. - The company reported a significant increase in revenue, with Q4 revenue reaching €1.5 billion, representing a 15% year-over-year growth[4]. - Full year revenue for 2024 was reported at €5.8 billion, up 12% compared to 2023[4]. User Growth - User data indicated an increase in active customers, with a total of 10 million active users by the end of 2024, a 20% increase from the previous year[4]. Market Expansion - The company plans to expand its market presence in North America, targeting a 25% market share by 2026[4]. - The company expects to launch three new products in 2025, aiming to capture an additional 5% market share[4]. Investment and Innovation - Flutter Entertainment is investing in new technology, with €200 million allocated for R&D in 2025[4]. - Future guidance indicates a projected revenue growth of 10-15% for 2025, driven by user acquisition and product innovation[4]. Strategic Goals - The company has outlined a strategic goal to achieve EBITDA of €1 billion by 2026, reflecting a 30% increase from 2024 levels[4]. - Flutter is exploring potential acquisitions to enhance its product offerings and market reach, with a focus on the European market[4].

Core Insights - Flutter Entertainment reported strong financial results for Q4 and full year 2024, with significant growth in revenue, net income, and adjusted EBITDA, positioning the company well for 2025 [1][4][5] Financial Performance - Q4 2024 revenue reached $3,792 million, a 14% increase from Q4 2023, while full year revenue was $14,048 million, up 19% year-over-year [2][4] - Average monthly players (AMPs) increased by 7% in Q4 and 13% for the full year, reaching 14,605,000 in Q4 [2][4] - Net income for Q4 was $156 million, a significant turnaround from a net loss of $902 million in Q4 2023, and full year net income was $162 million compared to a loss of $1,211 million the previous year [2][4][30] - Adjusted EBITDA for Q4 was $655 million, a 4% increase year-over-year, while full year adjusted EBITDA grew by 26% to $2,357 million [2][4] Market Position and Strategy - Flutter's FanDuel brand solidified its position as the number one operator in both sportsbook and iGaming in the US, with a market share of 36% in online gross gaming revenue [4][16] - The company expanded its international portfolio, adding MaxBet and achieving substantial growth in key markets such as the UK and Italy [4][12] - Flutter's strategic focus on product innovation and customer engagement led to a record sportsbook structural gross revenue margin of 14.5% and a 43% increase in iGaming revenue [6][20] Cash Flow and Capital Management - Net cash provided by operating activities increased by 67% year-over-year to $652 million, while free cash flow surged by 175% to $473 million [2][35] - The company initiated a share repurchase program, returning $121 million in Q4 2024, with plans to return up to $1 billion to shareholders in 2025 [4][51] 2025 Guidance - For 2025, Flutter anticipates revenue growth of 13% and adjusted EBITDA growth of 34% at the midpoint, with existing state revenue expected to reach $7.72 billion, representing a 33% increase [8][53] - The company expects new state launches to incur a negative revenue impact of $40 million and an adjusted EBITDA cost of $90 million [10][55]

Group 1 - Flutter Entertainment is a leading online sports betting and iGaming operator with significant market positions globally, including in the US [2][3] - The company aims to leverage its scale and innovative mindset to drive long-term growth while promoting sustainability through its Positive Impact Plan [2] - Flutter operates a diverse portfolio of brands such as FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, and Paddy Power [3] Group 2 - Peter Jackson, CEO, and Rob Coldrake, CFO, will participate in the Morgan Stanley Technology, Media & Telecom Conference on March 5, 2025, at 08:30 AM PST [1] - A live audio webcast of the conference will be available on Flutter's investor relations website, with a replay accessible shortly after the event [1]

Group 1: The Greenbrier Companies (GBX) - The Greenbrier Companies is a leading supplier of transportation equipment and services to the railroad and related industries [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 13.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1][2] - The PEG ratio for The Greenbrier Companies is 0.96, compared to 1.96 for the industry, and it possesses a Growth Score of A [2] Group 2: M-tron Industries, Inc. (MPTI) - M-tron Industries designs, manufactures, and markets highly-engineered, high reliability frequency and spectrum control products and solutions [2] - The company also carries a Zacks Rank of 1 and has experienced a 1.7% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [2][3] - M-tron Industries has a PEG ratio of 0.88, compared to 1.47 for the industry, and it possesses a Growth Score of A [3] Group 3: Flutter Entertainment PLC (FLUT) - Flutter Entertainment is an online sports betting and iGaming operator [3] - The company holds a Zacks Rank of 1 and has seen a 9.2% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [3] - The PEG ratio for Flutter Entertainment is 0.55, compared to 1.35 for the industry, and it possesses a Growth Score of B [3]

Group 1: nCino, Inc. (NCNO) - nCino is a software-as-a-service company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.5% over the last 60 days [1] - nCino has a PEG ratio of 2.03, which is lower than the industry average of 2.39, and possesses a Growth Score of B [1] Group 2: Pilgrim's Pride Corporation (PPC) - Pilgrim's Pride is a producer of fresh and frozen meat products with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 4.3% over the last 60 days [2] - Pilgrim's Pride has a PEG ratio of 0.20, significantly lower than the industry average of 0.59, and possesses a Growth Score of A [2] Group 3: Flutter Entertainment plc (FLUT) - Flutter Entertainment is a sports betting and gaming company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its next year earnings has increased by 3.1% over the last 60 days [3] - Flutter has a PEG ratio of 0.58, compared to the industry average of 1.29, and possesses a Growth Score of B [3]

Industry Overview - The House Edge is a unique marketplace service focused on the casino, gaming, and online sports betting sectors, offering insights from Howard Jay Klein, a 30-year industry veteran [1] - Howard Jay Klein's extensive network and insider perspective consistently deliver superior returns, outperforming standard analyst guidance [1] Legalization Trends - Seven states are progressing toward legalization, potentially increasing the total number of states with legalized gambling to 45 plus DC, with at least three states likely to move forward this year [2] Expert Background - Howard Jay Klein has 30 years of executive and consulting experience in major casino operations, including roles at Ballys, Trump Taj Mahal, Mohegan Sun, and Caesars Palace in Las Vegas [3] - He is a value investor who prioritizes management quality in his investment strategies and leads The House Edge, providing actionable research for the casino, online betting, and entertainment industries [3] - His intelligence network spans the US gambling and entertainment sectors, encompassing customer-facing employees, mid-management, and C-suite executives [3]

Core Insights - Flutter Entertainment plc (FLUT) stock has increased by 25.4% over the past six months, outperforming the industry growth of 5.5%, indicating strong market momentum and dominance [1] - The Zacks Consensus Estimate for FLUT's earnings per share has been revised upward by 3.1% to $8.66 for the next year, reflecting positive analyst sentiment [2] Performance Metrics - The NFL season has significantly boosted FanDuel, leading to a 36% increase in overall betting handles for Q3 2024, with notable growth of 23% in states launched before 2022 and 37% in states launched during 2022 and 2023 [3] - Flutter's customer acquisition strategy has resulted in an average payback period of 18 months, well within the target of 24 months, demonstrating effective investment strategies [3] Revenue Growth - Revenues outside the United States increased by 15% in Q3 2024, with all segments contributing to this growth, particularly in the UK and Ireland, where EBITDA rose by 29% [4] - Favorable sports outcomes contributed to a 40 basis point increase in the sportsbook net revenue margin in the UKI, while Australia experienced a 130 basis point boost, leading to a 12% revenue increase and a 14% rise in adjusted EBITDA [4] Sportsbook and iGaming Performance - Flutter reported a 62% growth in sportsbook revenue for Q3 2024, supported by a 36% increase in handle and an 8.2% net revenue margin, alongside a structural revenue margin expansion to 12.8% [5][7] - The company reinvested a significant portion of its revenue gains into promotional spending to enhance customer value [7] - iGaming revenues surged by 46%, driven by ongoing product enhancements that bolster customer engagement and growth [8]