Flutter Entertainment’s U.S. performance will be in focus for 2022 earnings – earnings preview

by Kyle Morris

Flutter Entertainment PLC is scheduled to report 2022 results on Thursday. Here’s what you need to know:
 
Revenue Forecast: Based on a consensus of 21 estimates provided by FactSet, FTSE 100 gambling and gaming groups are expected to generate £7.55 billion ($9.08 billion) in revenue. Revenue of £6.04 billion in 2021
 
EBITDA forecast: Earnings before interest, taxes, depreciation and amortization, one of the company’s preferred metrics, is expected to be £1.06bn, based on the consensus of three estimates provided by FactSet.  In 2021, the company registered an Ebitda of £723.3 million.
 
what to see:
– US results: In November, US revenue guidance was raised to $2.95 billion to $3.2 billion from $2.85 billion to $3.1 billion, while for the group ex-US, adjusted Ebitda is expected to remain in the previous guidance range Inside.
In its first-half results in August, it said it expected full-year adjusted Ebitda to be between £1.29 billion and £1.39 billion, excluding its US operations.
As the deregulation of the U.S. market continues, the market has grown in importance to the company.
– UK&I Online: Rival Entain’s fourth-quarter results could point to Flutter’s second-half UK&I online revenue growth of around 8%, Citi analysts said in a note. They warned that a string of weak results from UK&I could have a negative impact on market sentiment, as UK&I Online accounts for about 50% of Flutter’s second-half Ebitda and shares have performed strongly year-to-date. Most likely to change the status quo is any commentary or guidance on 2023 US Ebitda, Citi added.
 
Write to Kyle Morris at kyle.morris@dowjones.com