Flutter Entertainment(US:FLUT)2025-05-07 21:32Financial Data and Key Metrics Changes - Group revenue increased by 8% year over year, with net income growing by 289% and adjusted EBITDA rising by 20% [19][20][29] - Earnings per share increased to $1.57 from a loss of $1.1, with adjusted earnings per share up by 51% [20] - Net cash from operating activities reduced by 44%, and free cash flow decreased by 52% year over year [26] Business Line Data and Key Metrics Changes - U.S. revenue was 18% higher year over year, with sportsbook growth of 15% and iGaming growth of 32% [21][22] - International revenue was $2 billion, reflecting constant currency growth of 32%, driven by strong performance in SEA and CEE regions [22][23] - iGaming in India saw a remarkable year-over-year revenue growth of 45% [16][23] Market Data and Key Metrics Changes - SEA region experienced excellent growth of 14%, driven by 25% AMP growth [23] - UKI saw overall growth moderate to 2%, but iGaming growth remained strong at 9% [23] - CEE's strong growth of 15% was driven by performance in Georgia and Serbia [23] Company Strategy and Development Direction - The company is focused on scaling its U.S. business and leveraging its international operations for diversification [6][11] - The acquisition of SNAI in Italy is expected to enhance scale and operational benefits [14][17] - The company is excited about its outcome-based pricing technology, which aims to innovate across U.S. and international markets [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business despite potential economic pressures, citing historical performance during consumer pressure periods [7][11] - The company remains optimistic about long-term growth opportunities in the global regulated market [18] - Management highlighted the importance of net revenue growth as a key metric, emphasizing a disciplined approach to promotions and customer acquisition [57][63] Other Important Information - The company is committed to a share repurchase program, expecting to return approximately $1 billion to shareholders during 2025 [28] - The acquisition of Snai is expected to generate synergies of €70 million over three years [48] - The company is monitoring developments in prediction markets and exploring opportunities in this space [10][86] Q&A Session Summary Question: Can you elaborate on the basketball-related factors affecting handle? - Management acknowledged some weakness in basketball handle but noted strength in NFL and MLB performance, indicating handle growth is in line with expectations [36][39] Question: How is iGaming performing compared to peers? - Management expressed satisfaction with iGaming performance, highlighting product delivery and unique content as key drivers [37] Question: What is the integration process for Snai? - Management is optimistic about the integration, expecting to realize synergies and operational benefits quickly [47] Question: How does the company view the impact of favorable sports results on guidance? - Management noted that while favorable results can impact cash balances, they remain confident in pricing and structural margin assumptions [87][88] Question: What are the strategic merits of bidding for the Italian Lotto? - Management highlighted the opportunity to cement leadership in Italy and the potential for digital growth in the lottery market [78][79] Question: Is there potential for maturity in U.S. states? - Management indicated that no states have reached maturity yet, with ongoing growth expected in existing states [95]