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Flutter Entertainment(FLUT) - 2024 Q4 - Annual Report
FLUTFlutter Entertainment(FLUT)2025-03-04 21:16
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Financial Performance - The company reported 13.9 million Average Monthly Players (AMPs) and 14,048millioninrevenueforfiscal2024[34].−Forfiscal2024,5614,048 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 5,798million(415,798 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 3,257million(233,257 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 143million,aimingtodiversifyinternationallyandexpanditsonlineofferings[50].−Thecompanyinvested143 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 3,205milliononsalesandmarketingacrossitsfourgeographicdivisions[60].MarketPresenceandOperations−Thecompanyoperatesinover100countries,withtheU.S.divisionbeingthefastest−growingsegment[44].−ThecompanyoperatesFanDuelretailsportsbooklocationsandoffersiGamingproductsinmultiplestates,ensuringcompliancewithlocalregulations[83].−ThepartnershipwithBoydGamingCorporationprovidesfirstskinaccessforonlinesportsbettinginvariousjurisdictions[81].RegulatoryEnvironment−AsofDecember31,2024,35stateshavelegalizedretailsportsbetting,30stateshavelegalizedonlinesportsbetting,and6stateshavelegalizediGamingintheU.S.[79].−TheUKGamblingActreviewhasledtonewregulations,includingastatutorylevyonlicensedoperatorrevenueforgamblingharmresearch,effectivefromApril2025[90].−TheIrishGamblingAct,enactedinOctober2024,introducessignificantreforms,includinganewlicensingframeworkexpectedtocommencein2025or2026[93].ComplianceandRiskManagement−Thecompanyhasazero−toleranceapproachtomoneylaunderingandfraud,implementingvariouscompliancepoliciesandmonitoringcustomeractivities[131].−Compliancewithlocalregulationsisessential,asfailuretoadherecouldresultinmonetarypenaltiesandincreasedoperatingcosts[122].−Thecompanyemploysriskmanagementtechniquesforsportsbookbets,utilizingmathematicalmodelsandsettingpredefinedlimitsforbetacceptance[578].WorkforceandEmployment−AsofDecember31,2024,thecompanyhad27,345employeesacross27countries,withaglobalemployeeturnoverrateof203,205 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 31millionforDecember31,2024,31 million for December 31, 2024, 37 million for December 31, 2023, and $47 million for December 31, 2022[587].