Flutter CEO Peter Jackson on Q2 Earnings, Raising FY Guidance, and Global Growth

Q2 Financial Performance and Guidance

• 📈 Flutter announced a strong second quarter with earnings per share of 295, exceeding the street's expectation of 208.
• 📊 Revenues also beat expectations, reaching 4.2 billion against the street's 4.13 billion, indicating a beat on both top and bottom lines.
• 🚀 The company is raising its full-year guidance, reflecting confidence in continued business momentum.

iGaming and Sports Betting Strength

• 🎯 iGaming has shown very strong performance, with revenues up 37% year-over-year, driven by exclusive games, a new rewards club, and jackpot features.
• 🏈 While sports outcomes can be unpredictable, Flutter experienced favorable results in Q2, benefiting from a mix of underdog wins and customer bets that didn't materialize.
• 📱 iGaming is becoming a significant contributor, approaching 40% of what the sports book brings in, even with limited state availability.

FanDuel Acquisition and Valuation

• 🤝 Flutter acquired Boyd Gaming's 5% stake in FanDuel, which was a pre-arranged deal at an attractive price.
• 💰 This acquisition provides new market access at favorable terms and marks a new valuation for the FanDuel business.

State Taxes and Regulatory Environment

• ⚠️ Increases in state taxes for 2025 are anticipated, but Flutter has not lowered its guidance due to offsetting favorable market access deals.
• ⚖️ The company expressed disappointment with tax increases in Illinois, fearing they could push recreational users to the black market and negatively impact sporting integrity.

International Business Growth

• 🌍 Flutter has had a good quarter internationally, closing the acquisition of Sisal to become the number one player in Italy.
• 🌐 The company is seeing strong growth in Turkey and India, and has acquired a business in Brazil, a fast-growing market.
• 🧩 Diversification across global markets outside of America presents significant opportunities for Flutter's growth.