Flutter Entertainment Plc · NYSE:FLUT
Flutter Entertainment — Investor Day (September 2024)
152 slides from Flutter Entertainment's investor day presentation, Sep 25, 2024
Slide 1: Investor Day
I N V E S T O R D A Y Management presentation and Q&A New York, September 25, 2024 Wi-Fi: Flutter Investor Day Password: FLUTTER2024 II N N VV EE SS TT O O RR DD AA YY 1
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that
Slide 3: Peter Jackson, Group CEO
P E T E R J A C K S O N GROUP CEO I N V E S T O R D A Y 3
Slide 4: Agenda
Agenda Introduction Global leader in sports betting and iGaming Our unique competitive advantage U.S. Continuing to win Break Rest of World Leveraging a local hero strategy Financial Model Our compelling financial story Break and Q&A I N V E S T O R D A Y 4
Slide 5: Introduction
Introduction PETER JACKSON, FLUTTER CEO I N V E S T O R D A Y 5
Slide 6: Flutter is the #1 online sports betting and gaming operator
Flutter is the #1 online sports betting and gaming operator Leading brands Powered by the Product Technology Expertise Scale 1. Number one position based on estimated revenue for the twelve-month period ended 30 June 2024, internal estimates based on competitor filings. See slide 148 for details on
Slide 7: A global leader with unmatched scale
A global leader with unmatched scale Revenue, LTM June 30 20244 3x $41bn Market Capitalization1 32m Active customers2 2x ~$14bn FY24E revenue3 ~$2.5bn FY24E Adjusted EBITDA3 Flutter #2 UK #2 US Group listed peer listed peer 1. As of September 17, 2024 2. See slide 148 for a definition of active cust
Slide 8: Strategic positioning is compelling investment opportunity
Strategic positioning is compelling investment opportunity 1 2 3 Diversified portfolio Unique differentiator: Significant market of local hero brands opportunity with local scale Rapidly expanding newly- Winning in key markets, Competitive advantages regulated US market and #1 position in US, Italy,
Slide 9: Significant market opportunity
Introduction 1 Significant market opportunity Regulated sports betting and gaming market1 Strong 8% CAGR to 2030 Further opportunity beyond 2030: ▸Just ~43% online in ROW ~$368bn ▸Unregulated ROW market still remaining of c.$210bn Compelling opportunity for future growth 1. Market opportunity and as
Slide 10: Diversified local hero brands
Introduction 2 Diversified local hero brands 2023 revenue by region1 Gold medals in key markets 2 6% US UK & Ireland Each 1% 38% 30% 3% 37% US 12% UK Australia Italy Ireland Turkey Georgia India 12% Spain Armenia Brazil Italy Australia Other 30% 45% 23% 1. Revenue is attributed based on the countrie
Slide 11: Local hero brands with local scale
Introduction 3 Local hero brands with local scale ▸Leading product grows customers and revenue INCREASED BEST SCALE AND CUSTOMER FLEXIBILITY PROPOSITION ▸Enables higher returns and investment capacity GREATER HIGHER ▸Creates significant barrier to entry OPERATING REVENUE LEVERAGE GROWTH ▸Drives supe
Slide 12: Unique advantages of the Flutter Edge
3 Unique advantages of the Product Technology Expertise Scale Empowering local hero brands with the benefits of a global leader I N V E S T O R D A Y 12
Slide 13: Optimal strategy to deliver success
Introduction 4 Optimal strategy to deliver success Harnessing the to Win in the US Win in the ROW ▸ Sustain FanDuel as the primary ▸ Consolidate gold medal positions sportsbook in North America ▸ Grow local hero brands through ▸ Solidify position as #1 iGaming brand organic investment and M&A ▸ Tran
Slide 14: Sustainability underpins our strategy
Introduction 4 Sustainability underpins our strategy Play Well Work Better Goal to reach 75% of customers Goal to reach 40% leadership using a Play Well tool1 by 2030 roles held by women by 20262 (50% by 2026) Our Positive Impact Do More Plan Go Zero Goal to reach NET ZERO Goal to improve the lives
Slide 15: Responsible gambling is at the heart of our business
Introduction 4 Responsible gambling is at the heart of our business Bespoke local approach With significant progress SUSTAINABLE underpinned by four PLAY made to date consistent principles 47.5% 75% SUSTAINABLE Play Well CUSTOMERS Lead progress underpins Flutter’s Q2 2024 tool 2030 goal usage global
Slide 16: Strategic positioning is compelling investment opportunity
Strategic positioning is compelling investment opportunity Diversified portfolio Unique differentiator: Significant market of local hero brands opportunity with local scale Harnessed by Clear and well executed strategy for sustainable growth Will deliver Flutter value-creation model Sustainable Cash
Slide 17: Creating significant medium-term value-creation
Creating significant medium-term value-creation c.25% c.$21bn 2027E Group c.$2.5bn Up to $5bn 2027E Group Adjusted EBITDA 2027E Free in capital returns revenue1 margin1 Cash Flow1 Approximately Approximately Approximately 14% 700 36% Shareholder returns compound basis points compound FCF over 3-4 ye
Slide 18: Peter Jackson, Group CEO
PETER JACKSON, GROUP CEO I N V E S T O R D A Y 18
Slide 19: Federated operating model
Introduction Product Technology Expertise Scale Federated operating model Decentralized decision making Challenger mindset in local markets Decisions at pace close to customer I N V E S T O R D A Y 19
Slide 20: Right management team to drive future success
Introduction Product Technology Expertise Scale Right management team to drive future success Delivering the wealth of expertise to power our strategic priorities PETER JACKSON ROB COLDRAKE PHIL BISHOP AMY HOWE BARNI EVANS Chief Executive Officer, Chief Financial Officer, Chief Operating Chief Execu
Slide 21: A global differentiator
Introduction Product Technology Expertise Scale - A global differentiator Product Technology Expertise Scale Natural home for Powering local Extensive portfolio Unparalleled, agile, world-leading industry brands through the of leading products scalable, proprietary experts, connecting effectiveness
Slide 22: Market leading products
Introduction Product Technology Expertise Scale Market leading products Product Sportsbook iGaming Superior pricing and risk management Unparalleled global breadth Global capabilities delivering best sportsbook High quality content with intuitive and personalized product across the Group delivery th
Slide 23: Unparalleled iGaming global breadth
Introduction Product Technology Expertise Scale Unparalleled iGaming global breadth Check out our iGaming video online Product: iGaming Leading local and global brands Best-in-class offering Highly effective customer acquisition #1 US, UKI Market-leading promotions and generosity Superior product an
Slide 24: Scaled and agile technology strategy
Introduction Product Technology Expertise Scale Scaled and agile technology strategy Check out our Technology video online Technology Unparalleled Unmatched Culture proprietary platforms scale and pace of innovation ▸Agile technology handling ▸Decentralized hubs with centers ▸Track record of sector-
Slide 25: Expertise
Introduction Product Technology Expertise Scale World-leading industry experts, connecting and collaborating Expertise ▸ 20+ years of online experience ▸ Deep bench strength ▸ Subject matter experts ▸ Shared knowledge and learning ▸ 250 global talent moves since 2022 I N V E S T O R D A Y 25
Slide 26: Powering local brands through the benefits of global leadership
Introduction Product Technology Expertise Scale Powering local brands through the benefits of global leadership Scale ▸ Driving operating leverage Revenue, LTM June 30 20241 ▸ Addressing a broad opportunity set ▸ Prioritizing longer term opportunities 2x ▸ Purchasing power 3x ▸ Geographic footprint
Slide 27: Pricing case study
Pricing case study DOMINIC CROSTHWAITE FLUTTER CHIEF TRADING OFFICER I N V E S T O R D A Y 27
Slide 28: Pricing underpins global sports betting leadership
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Pricing underpins global sports betting leadership We set accurate odds, using multiple core Pricing process inputs to get the right price quickly elling M od a We maximize the benefits of the largest M rk dataset in the market to mana
Slide 29: Operating model amplifies benefits of our scale and expertise
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Operating model amplifies benefits of our scale and expertise In-house 20+ years of experience expertise and 1,500 specialists Global teams Local sports managed by local expert teams, supported by our global capabilities Seamless distr
Slide 30: Price accuracy enables sustainable competitive advantage
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Price accuracy enables sustainable competitive advantage Offer more innovative and complex markets, shaping customer demand Flex pricing relative to market and competitive context Allows us to manage short-term results variability I N
Slide 31: More innovative and complex markets, shaping demand
Pricing and Risk Introduction Op Model Price Accuracy Net Effect More innovative and complex markets, shaping demand Material expansion in markets offered… …unlocking the benefits of market leading products 36% CAGR in player markets per game1 2021 2022 2023 1. Average unique market count offered on
Slide 32: Drives mix shift to higher revenue margin parlay products
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Drives mix shift to higher revenue margin parlay products More choice More parlays With more legs Bet at higher odds % of bets on player markets1 % of bets that are a parlay2 Average legs in a parlay3 Average odds of bets4 +470% +65% +
Slide 33: Flex pricing relative to market and competitive context
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Flex pricing relative to market and competitive context Best price as a Higher revenue margin to competitive advantage unlock generosity spend FanDuel has lowest prices but generates Higher gross revenue margin enabled highest gross re
Slide 34: Allows us to manage short-term results variability
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Allows us to manage short-term results variability Group actual vs expected gross revenue margin1 400bps 30bps 30bps Cumulative sports sports Cumulative results impact since 300bps results impact since January 2021 200bps January 2021
Slide 35: Global structural gross revenue margin advantage
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Global structural gross revenue margin advantage US1 UKI2 Australia3 17.5% 12.0% 13.3% 15.4% 9.2% 8.1% 8.3% 12.2% 6.8% 7.2% 11.8% 7.4% 2021 2022 2023 H1 2024 2021 2022 2023 2024 (Jan - 2020 2021 2022 2023 July) Flutter Rest of market C
Slide 36: Investing margin advantage to sustain benefits
Pricing and Risk Introduction Op Model Price Accuracy Net Effect Investing margin advantage to sustain benefits Improving pricing capabilities to extend our advantage Structural gross Partially revenue re-invested Unlocking new product innovations margin in advantage Better player value proposition
Slide 37: Generosity case study
Generosity case study BARNI EVANS SPORTSBET CEO I N V E S T O R D A Y 37
Slide 38: We have a worldclass sportsbook experience
Generosity Introduction Customer-led Diverse range Efficiency Outcomes We have a worldclass sportsbook experience Flutter Edge driving superior sportsbook outcomes Handle volume Market-leading pricing and risk Higher gross revenue margin Market-leading generosity Sustainable revenue growth I N V E S
Slide 39: We know how to deliver market-leading generosity
Generosity Introduction Customer-led Diverse range Efficiency Outcomes We know how to deliver market-leading generosity uniquely enables key drivers: Customer-led Diverse range Efficient delivery Enhanced customer experiences that are: Exciting Intuitive Personalized Fair I N V E S T O R D A Y 39
Slide 40: Unparalleled scale enables deeper customer understanding
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Unparalleled scale enables deeper customer understanding Flutter spends >$3bn annually in Annual active customers1 customer-led spend2 Australia 2023 Sportsbook >100 countries >10 brands and iGaming 2.3m ~3x Customer Insights 0.8
Slide 41: Elevating the sportsbook product experience
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Elevating the sportsbook product experience WIN MORE INSURANCE INTO THE SURPRISE & e.g. odds boost e.g. ‘money-back’ if 2nd ACTION DELIGHT e.g. inclusive free bet campaigns e.g. discretionary refund Pricing and risk management +
Slide 42: Expansion enabled by constant group innovation
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Expansion enabled by constant group innovation SEP SEPT2022 ‘23 MAR MAR2024 ‘24 JUN 2024 I N V E S T O R D A Y 42
Slide 43: Efficiency delivered through proprietary capabilities
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Efficiency delivered through proprietary capabilities Customer gets the value experience Machine Integrated with Distributed they want most scalable + thoughtfully through learning Tech Comms models platforms leveraging customer
Slide 44: Enhanced customer experiences
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Enhanced customer experiences Exciting Intuitive Bringing Giving our excitement from customers what the jump to the they want when final whistle they want it I N V E S T O R D A Y 44
Slide 45: Enhanced customer experiences
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Enhanced customer experiences Personalized Fair Creating an Not just delivering experience that what customer feels unique to expect but what each customer they deserve I N V E S T O R D A Y 45
Slide 46: Customer experience makes Sportsbet a clear player favorite
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Customer experience makes Sportsbet a clear player favorite Advocacy Growth Online Wagering NPS1 (%) Sportsbet AMPs2 (m) 34% 1.1 1.0 28% 22% 0.6 19% 0.1 2019 2023 Comp 1 Comp 2 20192 2021 2023 1. Net promoter score based on inter
Slide 47: Extending our structural revenue advantage
Generosity Introduction Customer-led Diverse range Efficiency Outcomes Extending our structural revenue advantage Sportsbet GGR & NGR (%) Structural hold Increasing gross revenue margins 18% from improved pricing and structural shifts in customer and product mix… 16% …have supported increasing 13% i
Slide 48: With more market-leading innovation to come
With more market-leading innovation to come 1-to-1 geno New range of personalisation generosity mechanics Model Driven Coming Generosity soon Machine learning capability that will create dynamic Giving customers targeted offering greater autonomy unique at the and choice individual customer- to depl
Slide 49: US overview
US overview AMY HOWE, FANDUEL CEO I N V E S T O R D A Y 49
Slide 50: Strategic positioning is compelling investment opportunity
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Strategic positioning is compelling investment opportunity Local hero FanDuel Unique differentiator: Significant US market brand with opportunity unmatched scale Harnessed by Clear and well executed strategy for sustainable growth Will deliver
Slide 51: FanDuel advantages delivered us to #1 position today
US Introduction Market Opp Sust SBK Adv iGaming Cohorts FanDuel Advantages delivered us to #1 position today ACQUIRE CUSTOMERS MORE + RETAIN CUSTOMERS FOR + GROW CUSTOMER EFFICIENTLY LONGER VALUE Benefiting from the I N V E S T O R D A Y 51
Slide 52: Progress clearly surpassed plans laid out in 2022
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Progress clearly surpassed plans laid out in 2022 Grow our Grow structural GGR Accelerate our Deliver positive customer base margin to 12% by 2025 iGaming position Adjusted EBITDA 3m c.10% #3 Negative 2022 brand 2022 Adjusted Q4 2022 AMPs FY 20
Slide 53: FanDuel has strengthened its position
US Introduction Market Opp Sust SBK Adv iGaming Cohorts FanDuel has strengthened its position Increased GGR market share… …built a scaled, profitable business FY 2021 Sportsbook H1 2024 iGaming H1 2024 Total H1 2024 Revenue Adjusted EBITDA1 51% NGR 51% $6,200m CAGR 46% 39% 38% 25% 27% 16% $1,804m $7
Slide 54: Consumer trends driving US industry growth
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Consumer trends driving US industry growth Parlays >70% Sportsbook Live action >25% NFL + NBA bets1 Player narratives >50% Customers want… Land-based content >50% iGaming customers play2 Jackpot games >35% 88% of bettors believe that sports bet
Slide 55: A sustainable winning strategy
US Introduction Market Opp Sust SBK Adv iGaming Cohorts A sustainable winning strategy Highly effective Superior World class promos Best Pricing acquisition Product and generosity Underpinned by our competitive moat: Unparalleled local scale and The I N V E S T O R D A Y 55
Slide 56: Commercial delivery underpins compelling financial outlook
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Commercial delivery underpins compelling financial outlook Scale advantage is Our players are growing Long runway for continued widening moat around in value customer acquisition our business c.$9.7bn c.25% c.$2.4bn 2027E US 2027E US Adjusted 2
Slide 57: Market opportunity
Market opportunity AMY HOWE, FANDUEL CEO I N V E S T O R D A Y 57
Slide 58: FanDuel market opportunity now expected to be $70bn
US Introduction Market Opp Sust SBK Adv iGaming Cohorts FanDuel market opportunity now expected to be $70bn 1.7x Total $70bn $7bn $24bn $40bn $18bn 1.5x US only $39bn Sportsbook $23bn iGaming Canada 2030 Mature market TAM1 2030 Mature market TAM2 (2022 estimate) US market growth to 4x where we are t
Slide 59: Pre-2022 states on-track to surpass original expectations
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Pre-2022 states on-track to surpass original expectations $10.0bn 77% $7.7bn $7.9bn 82% $6.5bn Sportsbook iGaming Previous mature market TAM estimate 2023 TAM1 Nov 22 estimate for 2023 TAM1 Nov 22 estimate for mature market2 mature market2 Driv
Slide 60: Factors combine to deliver US TAM 1.5x previous expectations
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Factors combine to deliver US TAM 1.5x previous expectations Market population Market population Drivers penetration coverage of increase Confident in reaching Confident in Higher parlay penetration, long-term population regulatory expansion st
Slide 61: Clear advocacy strategy
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Clear advocacy strategy GROWTH SUSTAINABILITY Continue to expand the map, with focus on “the big 3” Proactively drive favorable tax and policy outcomes • Creating compelling messaging around the industry’s economic impact (e.g. programs support
Slide 62: Sustainability built into the core of our business
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Sustainability built into the core of our business Understand Support Further a Unite Our Customers Our Customers Culture of RG the Industry Take data-led Develop tools and Increase Unify & advance approach to RG, capabilities to awareness and
Slide 63: Sustainable sportsbook advantages
Sustainable sportsbook advantages MIKE RAFFENSPERGER FANDUEL PRESIDENT OF SPORTS I N V E S T O R D A Y 63 63
Slide 64: Maintaining #1 by delivering key sportsbook growth drivers
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Maintaining #1 by delivering key sportsbook growth drivers Highly effective Superior World class promos Best Pricing acquisition Product and generosity Underpinned by our competitive moat: Unparalleled local scale and The I N V E S T O R D A Y
Slide 65: #1 sports betting brand driving highly efficient referral engine
US Sust ABK Adv Acquisition Product Generosity Pricing #1 sports betting brand driving highly efficient referral engine Aided brand awareness1 2023 active customers by source 80% 73% 26% Referrals 61% 74% Other channels Competitor A Competitor B Referral CPA ~75% lower than non-referral CPA2 1. Hall
Slide 66: National scale driving broadcast media spend efficiency
US Sust ABK Adv Acquisition Product Generosity Pricing National scale driving broadcast media spend efficiency Broadcast media spend mix1 Cost per impression2 National Local -45% ~30% ~50% ~70% ~50% 2022 2024E 2022 2024E 1. Estimated spend for advertising inventory purchases for male demographic age
Slide 67: Efficient investment in highly relevant streaming eco-system
US Sust ABK Adv Acquisition Product Generosity Pricing Efficient investment in highly relevant streaming eco-system Exclusive SBK Partner for Primary SBK category marketing Thursday Night partner for NFL partner of NFL Football and Christmas Day Sunday Ticket Monday Night on Netflix Hockey Streaming
Slide 68: Results in industry's most efficient acquisition engine
US Sust ABK Adv Acquisition Product Generosity Pricing Results in industry’s most efficient acquisition engine 34% more app downloads1… …while spending less2 +34% 1.2m +10% 0.9m Competitor A Competitor A Industry-leading payback periods: 18-month payback in H1 243 1. Internal estimate based on Q2 20
Slide 69: Integrated offering enables multi-product engagement
US Sust ABK Adv Acquisition Product Generosity Pricing Integrated offering enables multi-product engagement An engaged player base drives Single account for all FanDuel products greater value Active customers are 4x more likely to x-sell on state launch1 Customers that are active on more than one pr
Slide 70: FanDuel leads the way on parlay innovation
US Sust ABK Adv Acquisition Product Generosity Pricing FanDuel leads the way on parlay innovation 2024 2019 : SAME GAME 2022 REAL-TIME BET BIG 71 PLAYER PROPS: 14pp PARLAYS: EXPERIENCE: higher parlay penetration vs. competitors2 15pp higher retention among parlay customers3 18pp higher expected gros
Slide 71: Further transformative innovation in the pipeline
Further transformative innovation in the pipeline I N V E S T O R D A Y 71 71
Slide 72: Results in industry's #1 sportsbook product
US Sust ABK Adv Acquisition Product Generosity Pricing Results in industry’s #1 sportsbook product #1 rated sports betting app by customers Preferred brand for placing a bet1 33% 27% RATING 4.9 / 5 RATING 4.6 / 5 13% 1.5M Reviews 290K Reviews Competitor A Competitor B Average Player Days have increa
Slide 73: Customer-led and diverse range of generosity options
US Sust ABK Adv Acquisition Product Generosity Pricing Customer-led and diverse range of generosity options Expanded tokenization1 Seamless redemption From To Flexible Rewards - Profit Boost Tokens Limited visual cues for promotions Distribution innovation - Reward Stack Signposting of available rew
Slide 74: Delivered efficiently through advanced segmentation
US Sust ABK Adv Acquisition Product Generosity Pricing Delivered efficiently through advanced segmentation Sophisticated generosity distribution Marketing technology investment2 enhancing revenue per player H1 2023 H1 2024 Increase in +69% promos created relevant +10% -39% promotions +79% auto-campa
Slide 75: A winning formula for retaining our highest value customers
US Sust ABK Adv Acquisition Product Generosity Pricing A winning formula for retaining our highest value customers Top 20% customers returning at …And are continuously increasing in value unprecedented rates… Number of bets placed by top 20% customers +11% 91% customer retention1 H1 2023 1 H1 2024 2
Slide 76: In-house pricing enables competitive outperformance
US Sust ABK Adv Acquisition Product Generosity Pricing In-house pricing enables competitive outperformance 12% 11% 11% Increased pricing 9% 9% accuracy 9% Competitor A 8% 8% 8% 7% 7% 7% Improved bet mix Rest of Market 7% 6% 6% Product innovation 2020 2021 2022 2023 H1 2024 GGR margin vs market1 Loca
Slide 77: With opportunity for further structural hold growth
US Sust ABK Adv Acquisition Product Generosity Pricing With opportunity for further structural hold growth Parlay penetration increasing With runway for continued growth2 % handle1 Parlay SGP 21% Pre-game handle on parlays still only: 50% 22% Live still skews heavily 16% to straights, with live parl
Slide 78: Already at 12% structural margin with runway for further upside
US Sust ABK Adv Acquisition Product Generosity Pricing Already at 12% structural margin with runway for further upside Structural gross 16% revenue margin Long-term Market-leading 4% FanDuel generosity expectations Net revenue margin 12% Expect 15% gross revenue margin in 2027 in existing states I N
Slide 79: Clear leadership position has sustained over time
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Clear leadership position has sustained over time 2018: PASPA repeal Sportsbook GGR share (%) 50% 45% 46% 43% 44% 39% 39% 33% 32% 32% 36% 31% 29% Competitor A 30% 28% 28% 24% 22% 25% 24% Rest of Market 20% 2021: Fanatics 2022: Caesars 2023: ESP
Slide 80: Competitive moat and scale advantage drive leadership
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Competitive moat and scale advantage drive leadership Sportsbook product Marketing and Pricing updates releases generosity dollars ~500 Online sportsbook ~10k Cumulative updates to $10bn+ Total investment since product releases pricing platform
Slide 81: iGaming
iGaming AMY HOWE, FANDUEL CEO I N V E S T O R D A Y
Slide 82: We delivered on 2022 strategy to become #1 by 2025
US Introduction Market Opp Sust SBK Adv iGaming Cohorts We delivered on 2022 strategy to become #1 by 2025 iGaming GGR share1 (%) US Casino Market Share2 35 +3.5pp 30 25 25 Direct Cohort % of GGR3 23 Competitor A +4pp 20 20 Competitor B 15 Direct Casino Value-In4 +75% 10 1Q22 2Q22 3Q22 4Q22 1Q23 2Q2
Slide 83: Leadership position maintained through key growth drivers
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Leadership position maintained through key growth drivers Highly World class Superior effective promos and Product generosity acquisition Underpinned by our competitive moat: Unparalleled local scale and The I N V E S T O R D A Y 83
Slide 84: FanDuel brand position supports further growth
US Introduction Market Opp Sust SBK Adv iGaming Cohorts FanDuel brand position supports further growth #1 preferred casino brand today1 Continued through key partnerships 20% 19% 17% 10% FanDuel Brand 1 Brand 2 Brand 3 Media spend scaling >50% YoY2 while maintaining paybacks <20 months3 1. Hall & Pa
Slide 85: Delivering the product that customers are looking for
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Delivering the product that customers are looking for Customer preference on key features1 <50% 88% 98% Coverage of Top Games I Know 62% Game Suppliers2 Q2 2022 Q2 2024 2025 Exclusive Games 53% New Games 36% Branded Games 34% 5 Exclusive Wonka
Slide 86: Market-leading generosity improving engagement
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Market-leading generosity improving engagement Monthly Retention1 Further innovation on the way +28% +14 Q2 2022 Q2 2024 Average Player Days2 +66% +14 Q2 2022 Q2 2024 1. Monthly retention is calculated as the proportion of customers in Q2 2022
Slide 87: Confident we will deliver drivers of long-term growth
Confident we will deliver drivers of long-term growth Strong Extensive Momentum Runway Differentiated Plan to Expand Proposition US Market Translating to rapidly scaling revenue cohorts and profitability I N V E S T O R D A Y
Slide 88: Customer cohorts
Customer cohorts DAVID JENNINGS FANDUEL CFO I N V E S T O R D A Y
Slide 89: Revenue growth from three customer cohorts
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Revenue growth from three customer cohorts Existing states New states 1 2 3 Existing New customers customers Combined represent a large, fast-growing and sustainable revenue base II N N VV EE SS TT O O RR DD AA YY 89
Slide 90: Strong sportsbook customer acquisition volumes to date
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Strong sportsbook customer acquisition volumes to date1 3.4m 2.9m 1.6m 0.7m 0.3m 2019 2019A 2020 2020A 2021 2021A 2022 2022A 2023 2023A New states % of total population2 9% 9% 9% 10% 7% Driven by deeper penetration in existing states and new st
Slide 91: 2019 sportsbook cohort has grown GGR every year
US Introduction Market Opp Sust SBK Adv iGaming Cohorts 2019 sportsbook cohort has grown GGR every year #1 product underpinning key drivers2 19% CAGR Average Player Days3 2.5x Outsized growth in Y2 driven by annualization1 Gross revenue margin +73% Expansion 1.6x Strong retention after 4 years3 2019
Slide 92: Double digit revenue growth replicated in all cohorts
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Double digit revenue growth replicated in all cohorts 2019 cohort 2020 cohort 2021 cohort YoY: 35% 2022 cohort 2023 cohort CAGR Post- Annualization1 1-YR: 20% 2-YR: 12% 3-YR: 12% 4-YR: 19% 2019 2019A 2020 2020A 2021 2021A 2022 2022A 2023 2023A
Slide 93: Transformed iGaming capabilities driving strong growth
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Transformed iGaming capabilities driving strong growth Pre-sportsbook cohort 2019 cohort YOY +56% 2020 cohort 2021 cohort CAGR post 2022 cohort annualization1 2023 cohort +49% 1 YR: +9% 2 YR: 14% +10% 3 YR: +6% -7% +12% 4 YR: +4% -6% +22% 4 YR:
Slide 94: Headroom to double size of customer base in pre-2024 states
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Headroom to double size of customer base in pre-2024 states FanDuel sportsbook population FanDuel casino population penetration2 penetration1 1.9x 10.5% 2.1x 9.5% 5.6% 4.6% 2023 Long-Term Target 2023 Long-Term Target Expect future customers to
Slide 95: Strong foundation for sustainable existing state growth
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Strong foundation for sustainable existing state growth Efficient customer acquisition New product innovation Increased parlay penetration Existing customer New customer acquisition C. 16% Double digit capitalizing on existing state Sportsbook
Slide 96: Confident in long-term addressable population targets
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Confident in long-term addressable population targets Sportsbook 1.7x 80%1 iGaming 48% 2.2x 25%1 2024 States 4% 2023 States and Prior 44% 11% FanDuel FanDuel Long-Term Long-Term Live States Live States 1. Population targets represent the % of t
Slide 97: Significant operating leverage as business matures
US Introduction Market Opp Sust SBK Adv iGaming Cohorts Significant operating leverage as business matures Cost of sales %1 53.5-55.5% Long-term Adj EBITDA margins2: Sales and marketing % 25 -30% 10.5-12.5% Remain confident in previously Other operating costs % guided long-term range 5-6% Existing s
Slide 98: FanDuel winning formula will deliver long-term value creation
FanDuel winning formula will deliver long-term value creation Scale advantage is Our players are growing Long runway for continued widening moat around in value customer acquisition our business Sustainable revenue Significant Rapidly growth from operating scaling, new and leverage profitable existi
Slide 99: Investor Day
I N V E S T O R D A Y Management presentation and Q&A New York, September 25, 2024 II N N VV EE SS TT O O RR DD AA YY 99
Slide 100: ROW overview
ROW overview Dan Taylor, International CEO I N V E S T O R D A Y
Slide 101: Strategic positioning is compelling investment opportunity
Strategic positioning is compelling investment opportunity Diversified portfolio Unique differentiator: Significant ROW of local hero brands market opportunity with local scale Harnessed by Clear and well executed strategy for sustainable growth Will deliver Flutter value-creation model Sustainable
Slide 102: Huge global market with long runway of growth
ROW Introduction Developed markets UK case study Developing markets Huge global market with long runway of growth ROW gaming TAM1 6% 59% CAGR $298b 55% 2030 $193b $508bn 2023 $348bn 41% Regulated/regulating 45% Unregulated Online penetration 30% 39% Online market projected to grow at 10% annually 1.
Slide 103: Market is highly local, led by local leaders
ROW Introduction Developed markets UK case study Developing markets Market is highly local, led by local leaders Local Local Local customer payments / regulations needs reflected retail channels in product & as key enabler marketing for online Flutter makes decisions at pace, close to the customers
Slide 104: Empowering local heroes with the Flutter Edge
ROW Introduction Developed markets UK case study Developing markets Empowering local heroes with the Developed Developing Market type Mature Fast growth • Pre/early-stage regulation, higher levels • Scale market with established regulation of uncertainty and market share shift Key attributes • Stabl
Slide 105: Highly diversified across geographies and products
ROW Introduction Developed markets UK case study Developing markets Highly diversified across geographies and products 2023 ROW revenue by region1 Pro forma CAGR2 Brazil +14% Armenia Spain India Other • Exposure highly cash +7% Georgia Turkey 7% generative mature Each 2% markets and high UK growth i
Slide 106: ROW developed markets
ROW developed markets DAN TAYLOR, INTERNATIONAL CEO I N V E S T O R D A Y
Slide 107: Strong growth through substantial change
ROW Introduction Developed markets UK case study Developing markets Strong growth through substantial change Online Market Size NGR (2023)1 UKI ITALY2 AUSTRALIA $9.0b $3.7b $3.4b Flutter market share1 30% 21% 45% Revenue2 CAGR +7% +11% +14% Adj EBITDA2 CAGR +9% +11% +15% Our brands 1. See slide 148
Slide 108: Sisal leveraging Flutter Edge to take market share
ROW Introduction Developed markets UK case study Developing markets Sisal leveraging to take market share Sisal Italian online market share growth by category Sports betting GGR Pricing capabilities iGaming GGR +9ppt AMPs Generosity capabilities +3ppt 35% Lottery +2ppt Local 26% capabilities Retail
Slide 109: Snai consolidates Italian leadership, unlocking value
ROW Introduction Developed markets UK case study Developing markets Snai consolidates Italian leadership, unlocking value Enhances Flutter’s #1 position in Italy Unlock significant synergies Online Market Share – Q2 2024 c.$80m Integrated technology 21% Cost Common teams Synergies Aligned supplier t
Slide 110: Further Italian share gain opportunity in fragmented market
ROW Introduction Developed markets UK case study Developing markets Further Italian share gain opportunity in fragmented market Omnichannel operators winning Regulation likely to squeeze sub-scale players1 drives superior product Online only Operators PokerStars Flutter 33% brands with Platform migr
Slide 111: Transforming PokerStars through integration with local leaders
ROW Introduction Developed markets UK case study Developing markets Transforming PokerStars through integration with local leaders Plan India • PokerStars integration onto Italy technology of local hero brands completed Complete end H1 2025 UK Key benefits and .com North America • Strengthening comp
Slide 112: ROW: UKI case study
ROW: UKI case study IAN BROWN UKI CEO I N V E S T O R D A Y 112
Slide 113: Taking share in resilient UKI market
ROW Introduction Developed markets UK case study Developing markets Taking share in resilient UKI market Market expanding through Successful execution driving Flutter share gains regulatory change UKI online market NGR1 ($bn) +4% CAGR +7% AMPs CAGR2 30% 2023 market share4 7.0 +13% 5.9 Revenue CAGR2
Slide 114: Flutter winning in UKI market
Flutter winning in UKI market BEST PORTFOLIO PRODUCT & PLAYER SAFETY LOCAL SCALE GENEROSITY & EFFICIENCIES OF BRANDS & TRUST LEADERSHIP I N V E S T O R D A Y 114
Slide 115: Best portfolio of brands
BEST PORTFOLIO OF BRANDS I N V E S T O R D A Y 115
Slide 116: Product leadership leveraging Flutter Edge - Sports
ROW Introduction Developed markets UK case study Developing markets Product leadership leveraging - Sports New products New markets Mar 2024 Aug 2023 Fouls committed Fouls Won Saves Player Passes Score or assist 84% 47% of football customers of parlay customers placed a Super Sub have ‘frozen’ a bet
Slide 117: Product leadership leveraging Flutter Edge - iGaming
ROW Introduction Developed markets UK case study Developing markets Product leadership leveraging - iGaming Differentiated Co-created third In-house content branded games party exclusives In-house Peer to peer Innovative free-to-play game branded licensed content content Designed and First branded l
Slide 118: Product leadership leveraging Flutter Edge - Generosity
ROW Introduction Developed markets UK case study Developing markets Product leadership leveraging - Generosity From generic offers… …to tiered offers… …and personalized rewards -68% +163% reduction in mass generosity spend1 growth in tiered generosity spend1 1. Mass generosity refers to generosity s
Slide 119: Leading the industry on player safety and trust
ROW Introduction Developed markets UK case study Developing markets Leading the industry on player safety and trust Invested materially… …with positive outcomes… …and external recognition 412 Dedicated player safety Safer gambling tool usage Highest level Gamcare accreditation3 40% 56% colleagues1 3
Slide 120: Leveraging local scale for $100m cost efficiencies
ROW Introduction Developed markets UK case study Developing markets Leveraging local scale for $100m cost efficiencies Further integrating the UKI tech stack Automation and AI at our core Q1 2020 Q2 2024 Customer support journeys Sky Betting & Gaming migrating onto global automated % 8% 73% betting
Slide 121: Scale benefits compounding, $1bn Adjusted EBITDA business
ROW Introduction Developed markets UK case study Developing markets Scale benefits compounding, $1bn Adjusted EBITDA business Flutter UKI Revenue1 Flutter UKI Adj EBITDA1,2 H1 2024 Online H1 2024 Online 3x 4x 5x 10x Flutter Listed comp 1 Listed comp 2 Flutter Listed comp 1 Listed comp 2 YoY growth1
Slide 122: ROW: Developing markets
ROW: Developing markets DAN TAYLOR, INTERNATIONAL CEO I N V E S T O R D A Y
Slide 123: M&A will strengthen our portfolio of local hero leaders
ROW Introduction Developed markets UK case study Developing markets M&A will strengthen our portfolio of local hero leaders Grow share in Acquire local leaders Controlling stake in a developed markets in developed markets developing market • Grow share in established • New leadership position • New
Slide 124: Exceptional track record of delivering value from M&A
ROW Introduction Developed markets UK case study Developing markets Exceptional track record of delivering value from M&A First 3 years post-acquisition First 2.5 years post-acquisition 3 Acquired Feb 2019 Acquired Jan 2021 Acquired Aug 2022 Acquired Jan 2022 2.4x 3.4x 1.4x 1.3x Revenue1,2 2018 2021
Slide 125: Well placed in key developing markets for next wave of growth
ROW Introduction Developed markets UK case study Developing markets Well placed in key developing markets for next wave of growth India Central and Eastern Europe 111 million 1.4 billion collective population population $40-50bn TAM by 2 Latin America Turkey & North Africa 2030 ~150 million 215 mill
Slide 126: Case study 1 – India: Exceptional growth with large prize
ROW Introduction Developed markets UK case study Developing markets Case study 1 – India: Exceptional growth with large prize Junglee’s rapid expansion post acquisition Headroom to grow Avg Monthly Rake1 FY 2023 highlights India TAM4 (GGR $bn) $151m 7x revenue 5.6 #2 +18% market share2 1.3 2.9 milli
Slide 127: Case study 2 – Brazil: Acquisition creates strong podium player
ROW Introduction Developed markets UK case study Developing markets Case study 2 – Brazil: Acquisition creates strong podium player Significant market growth Strong combination Positioned to take share Brazil market NGR1 $bn 11% #3 18% CAGR $4.3bn Market Share1 Industry $330m Payments Experience $2.
Slide 128: Exceptionally well placed to capture huge global TAM
ROW Introduction Developed markets UK case study Developing markets Exceptionally well placed to capture huge global TAM Gold medals in Enviable brand Expanding Driving excellent largest regulated portfolio in high footprint to grow return from local markets driving growth share in ROW’s hero M&A su
Slide 129: Financial summary
Financial summary ROB COLDRAKE GROUP CFO I N V E S T O R D A Y 129
Slide 130: Financial model to deliver significant shareholder value
Financial model to deliver significant shareholder value Operating An ‘AND' business: Compelling leverage driving Organic investment platform for Significant cash Adjusted AND value accretive sustained revenue flow generation EBITDA margin M&A growth accretion AND capital returns I N V E S T O R D A
Slide 131: Transformational growth over three years
Transformational growth over three years Sustainable revenue growth Margin accretion Cashflow generation Capital allocation c.25% c.$2.5bn Up to c.$21bn $5bn 2027E Group 2027E 2027E Group Adjusted Free Cash in capital returns revenue1 EBITDA margin1 Flow1 Approximately Approximately Approximately 14
Slide 132: Strong track record of organic growth and value-creating M&A
Financial summary Introduction US ROW Group Strong track record of organic growth and value-creating M&A $14.2bn Revenue $11.8bn $9.5bn $8.3bn $5.7bn $2.7bn 2019 2020 2021 2022 2023 2024 $2.5bn Adjusted EBITDA2 $1.9bn $1.4bn $1.3bn $1.1bn $0.5bn 2 2019 2020 2021 2022 2023 2024 Feb 2019 Jan 2022 May
Slide 133: Strong foundation for sustainable existing US state growth
Financial summary Introduction US ROW Group Strong foundation for sustainable existing US state growth Efficient customer acquisition New product innovation c.16% Existing New customer customer Increased parlay penetration acquisition Double digit Sportsbook CAGR capitalizing on existing state penet
Slide 134: US: Existing US states Adjusted EBITDA to triple over three years
Financial summary Introduction US ROW Group US: Existing US states Adjusted EBITDA to triple over three years Existing states only 2024E1 2027E1 • Material Adjusted EBITDA expansion in 2025 from: 15% - 17% ⁃ Revenue growth 20%-25% Revenue c.$6.2bn CAGR c.$9.7bn ⁃ c.5-6ppt of operating leverage Adjus
Slide 135: US: Existing states growth benchmarks well versus high growth internet
Financial summary Introduction US ROW Group US: Existing states growth benchmarks well versus high growth internet Revenue CAGR 2024E-27E1 Adjusted EBITDA CAGR 2024E-27E1 16% 16% 16% 16% 14% 48% 14% 13% 13% 12% 12% 11% 11% 11% 11% 11% 11% 10% 10% 28% 27% 28% 28% 25% 26% 6% 6% 17% 13% 14% 14% 8% 1. F
Slide 136: US: Further material growth from new state launches
Financial summary Introduction US ROW Group US: Further material growth from new state launches Sportsbook iGaming Currently estimate ~2% of population annually At least one casino state over the next three years gain access 2025 – 2027 (~4% of population); first since 2021 ▸ Previously noted framew
Slide 137: ROW: Scale and diversification unlocks revenue growth
Financial summary Introduction US ROW Group ROW: Scale and diversification unlocks revenue growth FY 23 revenue growth in key markets1: UKI Italy Australia Other Consolidate & Invest2 +14% +10% -7% +32% % of ROW3 41% 18% 20% 12% Driving 5-10% ROW long-term revenue CAGR Underpinned by Local and Opera
Slide 138: Cost efficiency to drive ROW Adjusted EBITDA margin expansion
Financial summary Introduction US ROW Group Cost efficiency to drive ROW Adjusted EBITDA margin expansion $120m PokerStars integration $300m+ $80m Snai synergies Group cost efficiency program to 20271 $70m UKI efficiency program $30m UKI platform integration Renewed cultural focus on efficiency acro
Slide 139: ROW: Adjusted EBITDA growth enhanced by operating leverage
Financial summary Introduction US ROW Group ROW: Adjusted EBITDA growth enhanced by operating leverage 2024E1 Revenue 2027E3 CAGR2 Revenue c.$8.0bn 5% - 8% c.$9.5bn ▸ 2024 includes Existing ROW favourable YTD Adjusted EBITDA margin c.24.6% c.26% sports results Revenue c.$1.3bn 10% - 20% c.$2bn ▸ Int
Slide 140: ROW: Growth benchmarks well versus S&P500 consumer discretionary
Financial summary Introduction US ROW Group ROW: Growth benchmarks well versus S&P500 consumer discretionary Revenue CAGR 2024E-27E1 Adjusted EBITDA CAGR 2024E-27E1 8.5% 7% - 11% 5% - 10% 5.8% Flutter ROW S&P 500 Consumer Flutter ROW S&P 500 Consumer Discretionary Discretionary 1. S&P500 Consumer Di
Slide 141: Group: Adjusted EBITDA expected to more than double
Financial summary Introduction US ROW Group Group: Adjusted EBITDA expected to more than double 2024E1 In 2027E1 US $0.7bn c.$2.4bn Rest of World $2.0bn c.$3.0bn Reduces from 7% of Group Unallocated corporate overhead ($0.2)bn c.($0.2)bn Adjusted EBITDA to 4% by 2027 Group $2.5bn c.$5.2bn 1. 2024: M
Slide 142: Driving very strong free cash flow growth
Financial summary Introduction US ROW Group Driving very strong free cash flow growth 2024E CAGR In 2027E Other indicative cash costs2 2024E 2027E Group Adjusted EBITDA $2.5bn c.28% c.$5.2bn Tax $0.2bn c.$1.2bn % of revenue c.18% c.25% Other $0.2bn c.$0.1bn Net interest $0.4bn c.$0.7bn Capital Expen
Slide 143: Clearly defined capital allocation policy
Financial summary Introduction US ROW Group Clearly defined capital allocation policy Generates Organic — Disciplined player acquisition and retention investment highest investment — Sophisticated capabilities generate higher returns on generosity returns — Local hero brands in attractive markets Va
Slide 144: Significant value creation
Significant value creation Pathway to c.$5.2bn of Adjusted EBITDA in 2027 Revenue growth and operating leverage to drive significant capital allocation opportunities Commencing up to $5bn in shareholder returns across 3-4 years I N V E S T O R D A Y 144
Slide 145: Conclusion
Conclusion Peter Jackson, Flutter Group CEO Global leader in sports betting and iGaming I N V E S T O R D A Y 145
Slide 146: Strategic positioning is compelling investment opportunity
Strategic positioning is compelling investment opportunity Diversified portfolio Unique differentiator: Significant market of local hero brands opportunity with local scale Harnessed by Clear and well executed strategy for sustainable growth Will deliver Flutter value-creation model Sustainable Cash
Slide 147: Investor Day
I N V E S T O R D A Y Management presentation and Q&A New York, September 25, 2024 II N N VV EE SS TT O O RR DD AA YY 147
Slide 148: Definitions and endnotes
Definitions and endnotes Active customers includes the total number of players who have placed and/or wagered a stake and/or contributed to rake or tournament fees during the applicable period Average Monthly Players (“AMPs”) is defined as the average over the applicable reporting period of the tota
Slide 149: Appendices
Appendices I N V E S T O R D A Y 149
Slide 150: Reconciliation of historic revenue
Appendices Reconciliation of historic revenue 2019 Group reported Historic Pro forma US segment as Pro forma ROW $m revenue in USD1 acquisitions2 combined reported1 combined ROW revenue 2,732 3,283 6,015 480 5,535 2019 Segment reported revenue Historic Pro forma $m in USD1,3 acquisitions2 combined U
Slide 151: Adjusted EBITDA reconciliations
Appendices Adjusted EBITDA reconciliations Group1 $m 20191 20201 2021 2022 2023 Net income 143 45 (757) (370) (1,211) Add back: Income taxes 30 46 194 75 120 Other (expense)/income, net - - (101) (5) 157 Interest expense, net 18 131 215 212 385 Depreciation and amortization 329 828 1,010 1,075 1,285
Slide 152: Adjusted EBITDA reconciliations
Appendices Adjusted EBITDA reconciliations tombola Sisal Adjarabet Junglee LTM Jun LTM Jun $m 2021 2021 2018 2021 2020 2023 2024 2024 Net income (34) 73 143 164 25 64 15 11 Add back: Income taxes 3 20 (105) 32 - 1 5 3 Other (expense)/income, net - 1 - 3 - - - - Interest expense, net - (6) 30 (27) 1
Flutter Entertainment — Investor Day (September 2024) on 6ix