Flutter Entertainment Plc · NYSE:FLUT
Flutter Entertainment — Investor Presentation (January 2024)
30 slides from Flutter Entertainment's investor presentation, Jan 29, 2024
Slide 1: Flutter Entertainment NYSE Listing Presentation
FLUTTER ENTERTAINMENT NYSE LISTING PRESENTATION 29 January 2024
Slide 2: Disclaimers
Disclaimers Disclaimers Forward-Looking Statements This presentation contains information that is forward-looking, including within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and which reflects the Company’
Slide 3: Our ambition is to transform global gaming and betting
“Our ambition is to transform global gaming and betting, to deliver long-term growth and a positive, sustainable future for our sector. We are Changing the Game” 3
Slide 4: Introduction to Flutter
Peter Jackson, Group CEO INTRODUCTION TO FLUTTER 4
Slide 5: A portfolio of the world's leading sports and iGaming brands
A portfolio of the world’s leading sports and iGaming brands Powered by the Flutter Edge 22,000 colleagues Scale and capital to Proprietary, agile and Innovative products including 7,000 invest in the largest scalable technology technologists global opportunities Creating the global leader in Online
Slide 6: Our strategic positioning creates a compelling investment opportunity
Introduction to Flutter OUR STRATEGIC POSTIONING CREATES A COMPELLING INVESTMENT OPPORTUNITY 1 2 3 4 5 Diversified geographic Significant market Optimal strategy to Compelling growth product portfolio at The “Flutter Edge” opportunity scale deliver success algorithm Access to the Projected scale of
Slide 7: Significant Market Opportunity
SIGNIFICANT MARKET OPPORTUNITY 7
Slide 8: Uniquely positioned to capitalise on a long runway of market growth
Market Opportunity WE ARE UNIQUELY POSITIONED TO CAPITALISE ON A LONG RUNWAY OF MARKET GROWTH US $228bn GGR 8 Projected 2030 Total Addressable Market (“TAM”): $40bn regulated markets 8,9 • Rapidly growing market with high barriers to entry Includes market revenue currently generated offline and mark
Slide 9: US online sportsbook more than halfway to 2030 population targets
Market Opportunity US ONLINE SPORTSBOOK ALREADY MORE THAN HALFWAY TO 2030 POPULATION TARGETS 2030 TAM8 assumptions Progress to date Sportsbook population 80% coverage12 45% Including sportsbook penetration13: 10.5% 6.0% iGaming population 25% coverage12 11.5% $40.5BN Total Addressable Market14 $15.3
Slide 10: Diversified Portfolio at Scale
DIVERSIFIED PORTFOLIO AT SCALE 10
Slide 11: Diversified geographic and product portfolio operates at scale
Scale & diversification OUR DIVERSIFIED GEOGRAPHIC AND PRODUCT PORTFOLIO OPERATES AT SCALE #1 share in key markets translates to a disproportionate share of profit pool Leadership drives significant scale and global reach Leading product grows US 37% customer base and revenue (43% online sportsbook,
Slide 12: Continuously innovating our product to engage customers
Scale & diversification WE ARE CONTINUOUSLY INNOVATING OUR PRODUCT TO ENGAGE CUSTOMERS Decades of game-changing product innovation MUCH MORE 2000 2003 2008 2011 2016 2019 2022 TO COME Pricing brought in house Driven by proprietary capabilities and collaboration Sports Gaming 12
Slide 13: The Flutter Edge
THE FLUTTER EDGE 13
Slide 14: The right management team to drive future success
The Flutter Edge WE HAVE THE RIGHT MANAGEMENT TEAM TO DRIVE FUTURE SUCCESS Delivering the wealth of expertise required to power our strategic and sustainability priorities PETER JACKSON PAUL EDGECLIFFE-JOHNSON PHIL BISHOP AMY HOWE BARNI EVANS Chief Executive Officer, Chief Financial Officer, Incomin
Slide 15: Power of our combined businesses is our competitive advantage
The Flutter Edge THE POWER OF OUR COMBINED BUSINESSES IS OUR UNIQUE COMPETITIVE ADVANTAGE PRODUCT TECHNOLOGY PEOPLE CAPITAL Decades of Agile and scalable Experienced, mobile Capital to invest for institutional knowledge proprietary platforms and motivated talent growth underpin market leading drive
Slide 16: Case study: winning global sportsbook positions
The Flutter Edge CASE STUDY: WINNING GLOBAL SPORTSBOOK POSITIONS DRIVEN BY THE FLUTTER EDGE Key inputs to sportsbook innovation International deployment in Flutter • Investment in innovation OUTPUT • Acquisition of local hero brands Market-leading like Sportsbet product • First to market products •
Slide 17: Case study: value creative M&A is a repeatable playbook
The Flutter Edge CASE STUDY: VALUE CREATIVE M&A IS A REPEATABLE PLAYBOOK FOR FUTURE GROWTH Track record of accelerating strong local brands With benefits for both Flutter and our local heroes 1 Reciprocal product innovation pipeline #1 brand in Italy10 Market Attractive Enhanced Sharing expertise ac
Slide 18: Optimal Strategy to Deliver Success
18 OPTIMAL STRATEGY TO DELIVER SUCCESS 18
Slide 19: Optimal group strategy to deliver long-term shareholder value
Optimal Strategy WE HAVE THE OPTIMAL GROUP STRATEGY TO DELIVER LONG-TERM SHAREHOLDER VALUE US Group ex – US Invest to win in the US Grow our gold medal positions in Build on our network and invest our core markets for leadership positions across International markets Underpinned by sustainability th
Slide 20: Our US strategy is to invest to win
Optimal Strategy US OUR US STRATEGY IS TO INVEST TO WIN Build on our sustainable competitive advantage and extending our leadership position US 1 Extend #1 US sportsbook position Enabled by • Capitalising on #1 4M £3.6BN the FanDuel US revenue share2 Q4E Average FY23E revenue7 Advantage (next Monthl
Slide 21: The FanDuel advantage has delivered #1 sportsbook position
Optimal Strategy US THE FANDUEL ADVANTAGE HAS DELIVERED #1 SPORTSBOOK POSITION2 Continuously enhancing customer experience and value through innovation Acquire Retain Grow Customers more efficiently Customers for longer Customer value #1 sports betting brand2 Product innovation Proprietary pricing a
Slide 22: In core markets we will grow our gold medal positions
Optimal Strategy Core markets IN OUR CORE MARKETS WE WILL GROW OUR GOLD MEDAL POSITIONS Grow our customer base efficiently, using local scale to unlock benefits across core markets How we do it: UK & Ireland 1 Clear focus on recreational customers #1 3.9M £2.5BN UK & Ireland Q4E Average FY23E revenu
Slide 23: In International we will invest for leadership positions
Optimal Strategy International IN INTERNATIONAL WE WILL INVEST FOR LEADERSHIP POSITIONS Combine global scale and local presence to deliver sustainable growth across our markets How we do it: International 4.5M Concentrating investment in key markets 1 with structural growth opportunities PODIUM £2.3
Slide 24: Compelling Growth Algorithm
24 COMPELLING GROWTH ALGORITHM 24
Slide 25: Strong track record of creating shareholder value
Growth Algorithm WE HAVE A STRONG TRACK RECORD OF CREATING SHAREHOLDER VALUE Sustainable Margin benefits Cashflow generation Capital allocation revenue growth • Growing player base • Scale efficiencies and • Established operations • Disciplined player acquisition Progress operating leverage highly c
Slide 26: Conclusion
CONCLUSION 26
Slide 27: Our strategic positioning creates a compelling investment opportunity
Conclusion OUR STRATEGIC POSTIONING CREATES A COMPELLING INVESTMENT OPPORTUNITY 1 2 3 4 5 Significant market Diversified Optimal strategy to Compelling Growth opportunity geographic product The “Flutter Edge” deliver success Algorithm portfolio at scale Access to the Projected Significant growth sca
Slide 28: US, International, UK & Ireland, Australia
US INTERNATIONAL UK & IRELAND AUSTRALIA
Slide 29: Flutter
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Slide 30: Footnotes
Appendix Footnotes 1 Market Capitalisation calculated by reference to the closing price of Flutter’s shares on the London Stock Exchange at close on Friday 19 January, converted at spot ($1.27) on Monday 22 January 2024. 2 US market position based on internal GGR figures and market GGR data released
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