Flutter revamps financial reporting strategy as US investment grows

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Flutter have revealed a critical change in its financial reporting strategy that will see its global portfolio divided into two separate categories.

Prior to this alteration, the iGaming conglomerate reported its financial results for the United States, Australia, United Kingdom and Ireland in unique segments. Now, the group will band all non-US ventures into a segment titled ‘Flutter International’. 

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Operations hailing from the US, such as FanDuel, shall be included in the aptly labelled ‘Flutter US’ umbrella.

Flutter, which owns popular betting entities Paddy Power and Betfair, among others, is undertaking this manoeuvre in a bid to “reflect the way the company now manages operations and allocates resources.”

Put simply, Flutter views this change as a necessary deed that will streamline investors’ understanding of the company’s ventures. 

Flutter International’s reportable revenue now sits marginally ahead of its US leg – with increased North American assets and expenditures driving this result. 

In turn, the consolidation of its fiscal accounting represents a natural evolution of the corporation’s reporting procedure.

Flutter will debut its revamped segment-based reporting in the group’s soon-to-be-released report for Q1 2025. 

The news follows a recent trend by the company to loosen ties in the UK and Ireland, with Flutter’s January delisting from the Dublin stock exchange in favour of a public listing in the US an indicator of the group’s immediate plans. 

Now registered on the New York Stock Exchange, Flutter is expected to place significant focus on its operations across the pond.

While these changes will not impact Flutter’s historical or current revenue figures, analysts now face an uphill battle when dissecting domestic quarterly and annual earnings due to the absence of specific results for the UK, Ireland and Australia.

However, US-centric performance tracking shall remain unchanged. 

Investors can now view previous Flutter financial reports, dated back to 2021, in the refreshed format; the company has published recast financial information to imitate all future reports.

Under the recast for FY2024, Flutter details that US segment revenue stood at £4.4bn by 31 December – with sports betting (£3.07bn) representing most of that figure.

International revenue for the same period sits at £6.36bn. The UK and Ireland accrued a substantial portion of Flutter’s global earnings, at £2.77bn. Southern Europe and Africa, Asia Pacific, Central and Eastern Europe, Brazil and ‘other regions’ form the rest of the field. 

Of particular note in this new-look reporting style is the contrast between Flutter International and Flutter US adjusted EBITDA; at £391m and £1.59bn respectively. 

Despite the obvious discrepancy between both verticals, much of the US figure is attributed to marketing costs within the territory as states unlock and warm to gambling investment.