Flutter: Significant Q1 net loss due to Fox Option liability fair value change

Flutter Entertainment
Image: rblfmr/Shutterstock

Flutter Entertainment has declared a significant net loss for the first quarter of 2024 due to acquired intangibles amortisation and fair value change in Fox Option liability.

Although high net losses were reported, CEO Peter Jackson has stated that the FTSE 100 group has achieved an “excellent start to the year” following an increase in revenue and adjusted EBITDA.

‘Excellent start’ despite net loss

Publishing its Q1 results, Flutter cited a revenue gain of 16 per cent in comparison to the previous year to $3.4bn (Q1 2023: $2.9bn), following continued growth of its US business and strong igaming momentum in UKI. Average monthly players improved by 11 per cent year-over-year as well, reaching 13.7m (2023: 12.3m).

Excluding US operations, group revenue rose by eight per cent year-over-year to $2bn (2023: $1.8bn).

Although revenue gain was achieved, Flutter reported a net loss for the quarter of $177m, down 59 per cent in comparison to the same period last year (2023: $111m) after $356m in non-cash changes due to $172m acquired intangible amortisation and $184m (2023: $64m) fair value change in Fox Option liability.

Group adjusted EBITDA for Q1 improved by 46 per cent YoY to $514m (2023: $352m) with a margin of 15.1 per cent (2023: 12.1 per cent).

US adjusted EBITDA improved to $26m (2023: $53m loss) with a margin driven by strong revenue growth, margin growth and significant operating leverage despite continued disciplined player acquisition investment. 

Ex-US, adjusted EBITDA rose by 20 per cent to $488m (2023: $406m) following the increased revenue and adjusted EBITDA margin, primarily driven by sales and marketing leverage and a one-off credit from the settlement of historic litigation.

Net cash provided by operating activities improved to $337m (2023: $49m loss) after a strong operational performance converting into cash and YoY movement in US player deposits. 

Adjusted free cash flow improved to $157m (2023: $50m loss), total debt decreased to $6.8bn, while net debt stood at $5.7bn.

Jackson commented: “We have had an excellent start to the year. In the US, FanDuel’s top-line momentum is translating into strong growth in US-adjusted EBITDA and market share gains. We are focused on continuing to expand our player base, market share, and embedding future profits within our business through disciplined investment.”

Regional performance

Regionally, US operations performed well in Q1 despite unfavourable sports results in the second half of March. Revenue in the region grew by 32 per cent YoY to $1.4bn (2023: $1.1bn), as FanDuel had a 52 per cent NGR share, a 46 per cent GGR share and an igaming GGR share record of 27 per cent.

FanDuel’s igaming revenue and AMPs rose by 49 per cent and 34 per cent YoY respectively, the operator had a successful launch in North Carolina and it also became a founding member of the Responsible Online Gaming Association.

Ex-US, operations revenue and AMPs improved by eight per cent and 10 per cent YoY respectively following a strong igaming performance and the acquisition of MaxBet in January.

UKI revenue increased by 17 per cent YoY to $861m (2023: $736m) after igaming cross-sell rates grew thanks to product improvements. International revenue rose by five per cent to $797m (2023: $760m) with Sisal delivering market share gains in Italy and igaming performance mitigating unfavourable sports results.

Australia’s revenue fell by six per cent YoY to $329m (2023: $351m).

Jackson continued: “Outside of the US, our focus on delivering the best products for our players is driving good momentum in key markets such as the UK where the launch of Super Sub on Paddy Power has been our most successful product launch to date, and in Italy where we have been taking online sports betting and igaming market share during Q1 and reached an all-time record in April. 

“We are proud to be one of the founding members of the US Responsible Online Gaming Association whose goal is to develop and advance responsible gaming practices. We are a strong advocate for building a sustainable sector in the US. We believe that our global experience positions us well to help lead the way.”


Earlier this month, Flutter’s shareholders voted in favour of moving the group’s primary listing to the US, which is expected to be effective on May 31, 2024.

Despite the significant net loss, Flutter has expressed confidence in its financial year guidance given at the end of March.

US revenue and adjusted EBITDA have mid-points of $6bn (36.3 per cent growth) and $710m (206.1 per cent growth) respectively, while ex-US revenue and adjusted EBITDA have mid-points of $7.85bn (6.3 per cent growth) and $1.73bn (5.4 per cent growth) respectively.

Jackson concluded: “On May 1, shareholders voted to move our primary listing to the US. We believe a US primary listing is the natural home for the group and we look forward to this becoming effective on May 31.

“With a greater proportion of the group’s future profits expected to be generated in the US, we have moved our operational headquarters to New York reflecting the importance of the US sports betting and igaming market to our business.”