Flutter Entertainment(US:FLUT)2025-05-07 20:11Player Metrics - Total Group Average Monthly Players (AMPs) increased to 14,880 in Q1 2025 from 13,722 in Q1 2024, representing a growth of 8.5%[149] - Sportsbook AMPs rose to 8,798 in Q1 2025, up from 8,340 in Q1 2024, indicating a year-over-year increase of 5.5%[149] - iGaming AMPs grew to 7,260 in Q1 2025, compared to 6,535 in Q1 2024, reflecting a growth of 11.1%[149] - Total International AMPs rose to 10,568, an increase of 7.5% from 9,825 in the previous year[171] - Southern Europe and Africa revenues grew by 14%, with AMPs reaching 1.8 million, a growth of 25%[182] Revenue and Income - Revenue increased by 8% to $3,665 million for the three months ended March 31, 2025, compared to $3,397 million for the same period in 2024[152] - U.S. segment revenue grew by 18% to $1,666 million, driven by a 15% increase in Sportsbook revenue and a 32% increase in iGaming revenue[166][167] - Net income increased by $512 million to $335 million for the three months ended March 31, 2025, with a net income margin of 9.1% compared to a net loss margin of 5.2% in the prior year[161] - Adjusted EBITDA rose by 20% to $616 million, with an Adjusted EBITDA margin of 16.8%, up from 15.1% in the previous year[162] - International segment revenue slightly increased by 1% to $1,999 million, with iGaming revenue up by 4%[172] - Total International segment revenue increased by 1% to $1,999 million for the three months ended March 31, 2025, compared to $1,987 million for the same period in 2024[176] Expenses and Profitability - Technology, research and development expenses increased by 13% to $215 million, reflecting continued investment in product development[154] - Sales and marketing expenses decreased by 5% to $840 million, with a revenue percentage drop from 26% to 23%[155] - Operating profit increased by $99 million to $223 million, attributed to revenue growth and cost management[157] - Other income improved by $390 million to $216 million, primarily due to a significant change in the fair value of the Fox Option liability[158] - Adjusted EBITDA for International was $518 million for the three months ended March 31, 2025, a 1% decrease from $524 million for the same period in 2024[186] Market Developments - The acquisition of Snaitech S.p.A was completed for approximately €2.3 billion ($2.6 billion), expected to enhance the International segment starting Q2 2025[131] - Flutter acquired a 56% interest in NSX Group for approximately $346 million, with completion expected in May 2025, aimed at expanding in the Brazilian market[132] - The U.S. segment is identified as the largest growth opportunity, with FanDuel active in 22 states as of March 31, 2025[136] - The regulatory environment in Italy is evolving, with new online gaming licenses expected to be issued by May 30, 2025, following a legislative decree approved in August 2023[143] - Brazil launched its regulated market for online sports betting and casino on January 1, 2025, with Flutter receiving a full license on February 7, 2025[147] Cash Flow and Financial Position - As of March 31, 2025, the company had $1,537 million in cash and cash equivalents available for corporate use[195] - Net cash provided by operating activities decreased by $149 million, or 44%, to $188 million for the three months ended March 31, 2025, compared to $337 million for the same period in 2024[204] - Net cash used in investing activities decreased by $159 million, or 61%, to $100 million for the three months ended March 31, 2025, compared to $259 million for the same period in 2024[206] - Net cash used in financing activities increased by $90 million, or 50%, to $271 million for the three months ended March 31, 2025, compared to $181 million for the same period in 2024[207] - Cash outflow in player deposit liabilities was $220 million due to timing of sports events for the three months ended March 31, 2025[205] - Cash outflow of $210 million in other liabilities was related to retention bonuses from the Singular acquisition and increased bonus payouts for the three months ended March 31, 2025[205] Regulatory and Risk Factors - The ongoing review of the UK Gambling Act may lead to more stringent regulations, potentially impacting Flutter's operations in its second-largest market[142] - The fair value of the Fox Option liability ranges from $52 million to $2,098 million as of March 31, 2025, depending on various assumptions[212] - The Group determined there was no impairment of goodwill for any reporting units following the change in reporting structure within the International segment[215] - There were no significant changes in exposure to market risk during the three months ended March 31, 2025[218] - The decrease in capital expenditures contributed to the reduction in net cash used in investing activities for the three months ended March 31, 2025[206] - The increase in cash outflow for financing activities was primarily driven by the repurchase of ordinary shares in the three months ended March 31, 2025[207] Revenue Breakdown - Sportsbook revenue decreased by 2% to $880 million for the three months ended March 31, 2025, with amounts staked down 6% to $6,912 million[177] - iGaming revenue increased by 4% to $1,050 million for the three months ended March 31, 2025, driven by a 9% growth in AMPs[179] - UKI revenue grew 2% year-over-year, with iGaming growing 9% driven by the rollout of premium games[181] - APAC revenue decreased by 13%, primarily due to an 18% decline in sportsbook revenues in Australia[183] - Central and Eastern Europe revenue grew by 15%, driven by strong performances in Georgia and Serbia[184] - Brazil revenue was down 44% due to customer re-registration friction in the newly regulated market[185]