Why did FLUT's Q3 2024 EPS exceed expectations?

Flutter Entertainment's Q3 2024 EPS exceeded expectations due to several key factors:

1. Strong Revenue Growth: Flutter reported a 20% increase in revenue year-over-year, reaching $3.61 billion in Q2 2024. This robust revenue growth was driven by exceptional performance in the US market and strong growth outside the US, reflecting the company's strategic initiatives and market expansion.
2. US Market Performance: The company saw accelerated growth in the US, with average monthly players (AMPs) increasing by 27% and revenue growing by 39%. FanDuel, Flutter's US business, extended its #1 position with a 38% market share in total online gross gaming revenue (GGR). This performance underscores the effectiveness of Flutter's disciplined approach to customer acquisition and its best-in-class product offerings.
3. International Growth: Group Ex-US revenue grew by 10%, with AMPs increasing by 15%. Performance in the UK and Ireland was bolstered by the European Football Championship and favorable sports results. This diversification outside the US markets contributed significantly to the company's overall growth.
4. Technological Advancements: The completion of FanDuel Casino's migration to proprietary technology is expected to enhance customer offerings and user experience. This technological edge likely contributed to the company's ability to attract and retain customers, thereby supporting revenue growth.
5. Strategic Initiatives: Flutter's strong performance was driven by several strategic initiatives, including its focus on international growth, especially in Latin America, India, and Central and Eastern Europe. The company's investor day presentation highlighted its "Flutter Edge," which includes product, technology, expertise, and scale, positioning it for success in key markets.

In summary, Flutter's Q3 2024 EPS exceeded expectations due to a combination of strong revenue growth, particularly in the US market, international expansion, technological advancements, and strategic initiatives. These factors collectively contributed to the company's robust financial performance.