DAVY VIEW

2024 was another positive year for Flutter, with the group delivering 19% revenue growth and 26% aEBITDA growth. Given the FY24 headline numbers had been mostly pre-released, all eyes quickly move to 2025 guidance. In the US, revenue and aEBITDA guidance respectively represent 22.5% normalised revenue growth and 5.4 points of margin expansion (detail below). This guidance should be well received. In the Rest of World, business guidance for revenue and aEBITDA is flat year-on-year (yoy), pre-acquisition benefits. However, on a normalised basis, this represents growth of 6% and 10% and does not include acquisitions. Flutter also confirmed that it will buy back a further "up to" $1bn of shares this year. On the call, management’s conviction in both the 2025 growth targets and, importantly, the pathway to the 2027 Capital Markets Day (CMD) targets was evident. This update provides conviction in another strong year of growth, boosted by cash returns. At first glance, we are unlikely to make any meaningful changes to our FY25 forecasts.