Flutter Entertainment's Q4 2024: Contradictory Insights on Customer Acquisition, Product Strategy, and Market Expansion

These are the key contradictions discussed in Flutter Entertainment's latest 2024Q4 earnings call, specifically including: Customer Acquisition Environment, Product Strategy, and Market Expansion and Customer Acquisition:



Revenue and Adjusted EBITDA Growth:
- Flutter reported a 19% increase in revenue and a 26% rise in adjusted EBITDA to $482 million in 2024.
- The growth was driven by strong market positions in the U.S. and other key markets, strategic product innovation, and effective cost management.

U.S. Market Leadership and Performance:
- In the U.S., Flutter maintained a sportsbook GGR market share of 43% and a iGaming GGR market share of 26%, securing the position as the leading online sportsbook and iGaming operator.
- Growth in the U.S. was supported by successful product innovation, disciplined customer acquisition strategies, and high player engagement.

Strong International Business Performance:
- Flutter's international operations saw 14% revenue growth, with notable contributions from Sisal in Italy (41% online revenue growth) and MaxBet in the international business.
- Growth was driven by the integration of Flutter's "Edge" capabilities, which enabled share gains and improvements in market positions across various countries.

Cost Efficiency and Share Repurchase Program:
- Flutter achieved excellent operating leverage, despite customer-friendly sports results, and is on track to deliver $300 million in annualized cost savings by 2027.
- The company is expected to repurchase up to $1 billion of shares in 2025, reflecting strong cash conversion and leverage reduction, which has brought it within the medium-term guidance range.