Why did Flutter's operating profit surge in Q2 2024?


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Flutter's operating profit surged in Q2 2024 due to several key factors:
- Revenue Growth: The most significant contributor to the operating profit surge was the increase in revenue. Flutter's operating revenue for Q2 2024, was $3.61 billion1. This represents a substantial growth from the previous year's revenue of $2.92 billion for the same quarter. The growth in revenue was driven by strong performance in the U.S. market and international markets, particularly in iGaming.
- U.S. Market Performance: In the U.S., Flutter's average monthly players (AMPs) increased by 15%, and revenue grew by 32%. The company's leading brands, FanDuel and PokerStars, continued to perform well, with FanDuel achieving a record gross gaming revenue (GGR) share of 27% in the iGaming segment for the quarter23.
- International Market Performance: Outside the U.S., Flutter saw growth in key international markets such as the UK and Italy. The company's international business reported an increase in revenue and growth in iGaming performance, which helped to offset the impact of unfavorable sports results in some markets23.
- Adjusted EBITDA: The surge in operating profit can also be attributed to the increase in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Flutter's adjusted EBITDA for Q2 2024, was $514 million5. This is a 46% increase from the previous year's $352 million. The adjusted EBITDA margin also improved by 310 basis points to 15.1%23.
- Cost Management: Flutter's ability to manage costs effectively also contributed to the increased operating profit. Despite the increase in revenue, the company's cost of sales only rose to $1.793 billion from $1.541 billion, and general and administrative expenses increased to $409 million from $342 million6. This indicates that Flutter was able to control its costs and leverage its operating leverage to improve profitability.
In conclusion, Flutter's operating profit surge in Q2 2024 was driven by strong revenue growth, particularly in the U.S. and international markets, combined with effective cost management and improved profitability metrics such as adjusted EBITDA.
FLUT Operating Income, Total Revenue
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FLUT Operating Profit, Revenue in Q2 2024
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