Slide 1: Flutter Entertainment 2023 Earnings Presentation
FLUTTER ENTERTAINMENT 2023 EARNINGS PRESENTATION 26 March 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: Strategic Delivery FY23
STRATEGIC DELIVERY FY23 3
Slide 4: Strategic Delivery: A portfolio of the world's leading sports and iGaming brands
Strategic Delivery A portfolio of the world’s leading sports and iGaming brands Powered by the Flutter Edge 23,000 colleagues Scale and capital to Proprietary, agile and Innovative products including 7,000 invest in the largest scalable technology technologists global opportunities Creating the glob
Slide 5: FY23 Group Highlights
Strategic Delivery FY23 GROUP HIGHLIGHTS Average Monthly Revenue Further Adjusted Adjusted Free Adjusted EPS9 Players6 EBITDA7 Cash Flow8 +20% +25% +45% +63% +26% FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23 12.3m $11.8bn $1.9bn $938m $3.51 Strong US growth and ex-US growth through regulation u
Slide 6: US Highlights
Strategic Delivery US HIGHLIGHTS FY22 FY23 FY23 year on year growth +38% Average Monthly 3,209 Players (‘000s)6 2,319 +41% 4,484 Revenue ($m) 3,187 +$430m 167 Further Adjusted EBITDA ($m)7 (263) 3.7% Further Adjusted EBITDA7 margin (%) (8.2%) 6
Slide 7: Strategic Delivery: US Sportsbook
Strategic Delivery STRATEGIC DELIVERY: US SPORTSBOOK Build on our sustainable competitive advantage and extend our leadership position Investing behind attractive returns FanDuel new sportsbook and casino customers acquired by year +19% #1 Online sportsbook2 43% Sportsbook gross gaming revenue share
Slide 8: Strategic Delivery: US Sportsbook
Strategic Delivery STRATEGIC DELIVERY: US SPORTSBOOK Delivering highly engaging products Expanded Parlay offering • 1.5m Popular Same Game Parlays placed on Super Bowl Improved live betting • 33% of all Super Bowl live bets via Quick Bets • 2.8x live bet SGP penetration vs 2023 Super Bowl Driving hi
Slide 9: Strategic Delivery: US iGaming
Strategic Delivery STRATEGIC DELIVERY: US IGAMING More gaming Flutter iGaming market share titles 82% increase in new game launches vs 2022 +7ppt 26% Exclusive 19% content Improved capabilities Customizable jackpot campaigns Multiplayer functionality Jul 22 Feb 24 Value enhancing New partnership wit
Slide 10: Group Ex-US Highlights
Strategic Delivery GROUP EX-US HIGHLIGHTS FY22 FY23 FY23 year on year growth 9,116 +15% 7,926 Average Monthly Players (‘000s)6 +16% 7,306 Revenue ($m) 6,277 Further Adjusted EBITDA ($m)7 1,552 1,707 +10% Further Adjusted 24.7% EBITDA7 margin (%) 23.4% 10
Slide 11: Strategic Delivery: UKI
Strategic Delivery STRATEGIC DELIVERY: UKI Grow our customer base efficiently, using local scale to unlock benefits across core markets Product improvements on sportsbook and iGaming… …driving FY23 revenue growth and market share gains • Sportsbook innovation with Acca Freeze and exclusive Bet Sport
Slide 12: Strategic Delivery: Australia
Optimal Strategy STRATEGIC DELIVERY: AUSTRALIA Spend per player at pre-Covid levels Tax and regulatory burden impacting profitability Relative size, indexed to 201911 Product fees and taxes (included in cost of sales) as a % of revenue 2.0x 1.8x +10ppt 39% 1.5x 1.7x • Increased tax and product 1.0x
Slide 13: Strategic Delivery: International
Strategic Delivery STRATEGIC DELIVERY: INTERNATIONAL Combine global scale and local presence to deliver sustainable growth across our markets Continued strong performance by Sisal Pro forma revenue +14% in Consolidate & Invest markets13 • Georgia/Armenia +17%; market share gains #1 New betting app W
Slide 14: Financial Review
FINANCIAL REVIEW 14
Slide 15: Segment Financial Highlights
Financial review SEGMENT FINANCIAL HIGHLIGHTS 12 months ended 31 December • US: $m 2023 2022 YoY • Strong revenue performance in existing states Revenue combined with three new sportsbook states US 4,484 3,187 +41% • Further Adjusted EBITDA positive, significant UKI 3,047 2,664 +14% leverage in sale
Slide 16: Sustainably Higher Profitability Provides Platform to Increase Leverage Target
Financial review SUSTAINABLY HIGHER PROFITABILITY PROVIDES PLATFORM TO INCREASE LEVERAGE TARGET US positive Further Adjusted EBITDA driving …and platform to sustain a higher leverage rate15 improved leverage rate… 4.4x • Updating medium-term leverage target to 2.0x- 2.5x Net Debt14 to Further Adjust
Slide 17: 2024 Financial Guidance
Financial review 2024 FINANCIAL GUIDANCE Current • Group revenue +23% year on year for the 11 weeks to March 17, 2024 trading • Revenue range of $5.8bn - $6.2bn US 27 • Further Adjusted EBITDA range of $635m - $785m • Revenue range of $7.65bn - $8.05bn Group • Further Adjusted EBITDA range of $1.63b
Slide 18: Recap: Introduction to Flutter
RECAP: INTRODUCTION TO FLUTTER 18
Slide 19: 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 20: Uniquely Positioned to Capitalise on a Long Runway of Market Growth
Introduction to Flutter WE ARE UNIQUELY POSITIONED TO CAPITALISE ON A LONG RUNWAY OF MARKET GROWTH US $228bn GGR 18 Projected 2030 Total Addressable Market (“TAM”): $40bn regulated markets 18,19 • Rapidly growing market with high barriers to entry Includes market revenue currently generated offline
Slide 21: Diversified Geographic and Product Portfolio Operates at Scale
Introduction to Flutter 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 22: The Power of Our Combined Businesses Is Our Unique Competitive Advantage
Introduction to Flutter 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
Slide 23: Optimal Group Strategy to Deliver Long-Term Shareholder Value
Introduction to Flutter 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 sustainabi
Slide 24: Strong Track Record of Creating Shareholder Value
Introduction to Flutter 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 h
Slide 25: Appendices
APPENDICES 25
Slide 26: Group Income Statement
Appendices GROUP INCOME STATEMENT 12 months ended 31 December $m 2023 2022 Revenue 11,790 9,463 Cost of sales (6,202) (4,813) Gross profit 5,588 4,650 Technology, research and development expenses (765) (552) Sales and marketing expenses (3,776) (3,014) General and administrative expenses (1,596) (1
Slide 27: Group Adjusted and Further Adjusted EBITDA Reconciliation
Appendices GROUP ADJUSTED AND FURTHER ADJUSTED EBITDA RECONCILIATION 12 months ended 31 December $m 2023 2022 Net loss (1,211) (370) Add back: Income taxes 120 75 Other income/ (expense), net 157 (5) Interest expense, net 385 212 Depreciation and amortization 1,285 1,076 Transaction fees and associa
Slide 28: Segment Further Adjusted EBITDA Reconciliation
Appendices SEGMENT FURTHER ADJUSTED EBITDA RECONCILIATION 12 months ended 31 December $m 2023 2022 Adjusted EBITDA US 65 (347) UK & Ireland 888 757 Australia 348 477 International 592 395 Add back: share-based compensation US 102 84 UK & Ireland 23 19 Australia 8 8 International 35 22 Further Adjust
Slide 29: Group Ex-US Further Adjusted EBITDA Reconciliation
Appendices GROUP EX-US FURTHER ADJUSTED EBITDA RECONCILIATION 12 months ended 31 December $m 2023 2022 Adjusted EBITDA Group 1,678 1,142 US 65 (347) Group ex-US 1,613 1,489 Add back: share-based compensation Group 196 147 US 102 84 Group ex-US 94 63 Further Adjusted EBITDA Group 1,874 1,289 US 167 (
Slide 30: Group Adjusted Earnings Per Share Reconciliation
Appendices GROUP ADJUSTED EARNINGS PER SHARE RECONCILIATION 12 months ended 31 December $m 2023 2022 Net loss per share (6.89) (2.44) Add back: Transaction fees and associated costs 0.52 0.24 Restructuring and integration costs 0.71 0.88 Legal settlements/loss contingencies - (0.25) Impairment of PP
Slide 31: Group Net Debt Reconciliation
Appendices GROUP NET DEBT RECONCILIATION 12 months ended 31 December $m 2023 2022 Long-term debt 7,005 6,707 Long-term debt due within one year 51 43 Total Debt 7,056 6,750 Add: Transaction costs, premiums or discount included in the carrying value of debt 54 41 Less: Unrealized foreign exchange on
Slide 32: Group Adjusted Free Cash Flow Reconciliation
Appendices GROUP ADJUSTED FREE CASH FLOW RECONCILIATION 12 months ended 31 December $m 2023 2022 Net cash provided by operating activities 937 1,163 Less: Change in player deposits 1 72 Change in player deposit liability 382 (376) Add cash impact of: Transaction fees and associated costs 83 32 Restr
Slide 33: Footnotes
Appendices Footnotes 1 Market Capitalization calculated by reference to the closing price of Flutter’s shares on the New York Stock Exchange at close on Friday 22 March. 2 US market position based on available market share data for states in which FanDuel is active. Online sportsbook market share is
Slide 34: Footnotes
Appendices Footnotes 19 Ex-US TAM value based on internal estimates of 2022 gross gaming revenue for all countries excluding the United States. These figures include estimates of total market GGR from H2 Gambling Capital presented in GBP for Flutter’s 2023 interim results available at https://www.fl
Slide 35: US International UK & Ireland Australia
US International UK & Ireland Australia
Slide 36: =lutter
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