Exhibit 99.2
US GAAP - Consolidated Group income statement
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$m | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||
Sportsbook | 1,055 | 1,212 | 1,105 | 1,140 | 4,512 | 1,111 | 1,341 | 1,215 | 1,649 | 5,316 | 1,667 | 1,725 | 1,288 | 1,906 | 6,585 | |||||||||||||||
iGaming | 813 | 796 | 736 | 770 | 3,115 | 853 | 798 | 879 | 1,043 | 3,573 | 1,113 | 1,122 | 1,135 | 1,251 | 4,621 | |||||||||||||||
Other | 179 | 184 | 150 | 169 | 682 | 144 | 148 | 133 | 150 | 574 | 139 | 154 | 136 | 155 | 584 | |||||||||||||||
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Total revenue | 2,047 | 2,191 | 1,992 | 2,079 | 8,308 | 2,108 | 2,287 | 2,227 | 2,842 | 9,463 | 2,918 | 3,000 | 2,559 | 3,312 | 11,790 | |||||||||||||||
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Cost of sales | (918) | (970) | (962) | (1,031) | (3,881) | (1,085) | (1,100) | (1,176) | (1,452) | (4,813) | (1,541) | (1,490) | (1,386) | (1,784) | (6,202) | |||||||||||||||
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Gross profit | 1,129 | 1,221 | 1,030 | 1,047 | 4,427 | 1,023 | 1,186 | 1,051 | 1,390 | 4,650 | 1,377 | 1,510 | 1,173 | 1,528 | 5,588 | |||||||||||||||
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Technology, research and development expenses | (133) | (215) | (129) | (156) | (634) | (133) | (156) | (109) | (154) | (552) | (168) | (176) | (214) | (207) | (765) | |||||||||||||||
Sales & marketing expenses | (726) | (706) | (653) | (735) | (2,819) | (751) | (685) | (681) | (897) | (3,014) | (882) | (667) | (700) | (1,527) | (3,776) | |||||||||||||||
General and administrative expenses | (157) | (547) | (476) | (244) | (1,423) | (272) | (236) | (349) | (315) | (1,172) | (342) | (444) | (394) | (415) | (1,596) | |||||||||||||||
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Operating profit / (loss) | 113 | (246) | (229) | (87) | (449) | (133) | 109 | (88) | 24 | (88) | (16) | 223 | (135) | (621) | (549) | |||||||||||||||
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Other (expense) income, net | 88 | (16) | 97 | (68) | 101 | 91 | (27) | 31 | (91) | 5 | (45) | 11 | (44) | (80) | (157) | |||||||||||||||
Interest expense, net | (53) | (54) | (107) | (0) | (215) | (41) | (35) | (52) | (84) | (212) | (92) | (83) | (92) | (117) | (385) | |||||||||||||||
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Profit/(loss) before tax | 148 | (316) | (239) | (156) | (563) | (84) | 48 | (109) | (150) | (295) | (151) | 152 | (271) | (818) | (1,091) | |||||||||||||||
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Income tax (expense) / benefit | (27) | (201) | 15 | 19 | (194) | (21) | (28) | (92) | 66 | (75) | (98) | 53 | (16) | (59) | (120) | |||||||||||||||
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Net profit / (loss) | 121 | (516) | (224) | (137) | (757) | (105) | 19 | (201) | (84) | (370) | (249) | 205 | (287) | (877) | (1,211) | |||||||||||||||
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Quarterly Group information
Group - revenue and Adjusted EBITDA US GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$m (except | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Average monthly players (‘000s) | 7,868 | 8,191 | 7,811 | 8,715 | 8,146 | 9,522 | 9,747 | 9,596 | 12,114 | 10,245 | 12,349 | 12,222 | 11,139 | 13,588 | 12,325 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook stakes | 11,997 | 11,643 | 11,590 | 14,180 | 49,410 | 15,045 | 13,593 | 12,105 | 17,583 | 58,327 | 18,589 | 15,582 | 14,165 | 21,966 | 70,302 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook net revenue margin | 8.8 | % | 10.4 | % | 9.5 | % | 8.0 | % | 9.1 | % | 7.4 | % | 9.9 | % | 10.0 | % | 9.4 | % | 9.1 | % | 9.0 | % | 11.1 | % | 9.1 | % | 8.7 | % | 9.4 | % | ||||||||||||||||||||||||||||||
Sportsbook | 1,055 | 1,212 | 1,105 | 1,140 | 4,513 | 1,111 | 1,341 | 1,215 | 1,649 | 5,316 | 1,667 | 1,725 | 1,288 | 1,906 | 6,585 | |||||||||||||||||||||||||||||||||||||||||||||
iGaming | 813 | 796 | 736 | 770 | 3,115 | 853 | 798 | 879 | 1,043 | 3,573 | 1,113 | 1,122 | 1,135 | 1,251 | 4,621 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 179 | 184 | 150 | 169 | 681 | 144 | 147 | 133 | 150 | 574 | 139 | 154 | 136 | 155 | 584 | |||||||||||||||||||||||||||||||||||||||||||||
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Total revenue | 2,047 | 2,191 | 1,992 | 2,078 | 8,308 | 2,108 | 2,287 | 2,227 | 2,842 | 9,463 | 2,918 | 3,000 | 2,559 | 3,312 | 11,790 | |||||||||||||||||||||||||||||||||||||||||||||
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Adjusted EBITDA1 | 380 | 29 | 238 | 238 | 886 | 137 | 401 | 217 | 388 | 1,142 | 310 | 568 | 236 | 564 | 1,678 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin1 | 18.6 | % | 1.3 | % | 12.0 | % | 11.5 | % | 10.7 | % | 6.5 | % | 17.5 | % | 9.7 | % | 13.6 | % | 12.1 | % | 10.6 | % | 18.9 | % | 9.2 | % | 17.0 | % | 14.2 | % | ||||||||||||||||||||||||||||||
Share-based compensation2 | 7 | 402 | 47 | 27 | 484 | 42 | 30 | 59 | 17 | 147 | 43 | 64 | 25 | 64 | 196 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA1,3 | 387 | 430 | 286 | 266 | 1,369 | 178 | 430 | 276 | 405 | 1,289 | 352 | 632 | 261 | 629 | 1,874 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA margin1,3 | 18.9 | % | 19.6 | % | 14.3 | % | 12.8 | % | 16.5 | % | 8.5 | % | 18.8 | % | 12.4 | % | 14.2 | % | 13.6 | % | 12.1 | % | 21.1 | % | 10.2 | % | 19.0 | % | 15.9 | % | ||||||||||||||||||||||||||||||
Unallocated corporate overhead — US GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated corporate overhead costs | (46 | ) | (38 | ) | (33 | ) | (35 | ) | (151 | ) | (41 | ) | (34 | ) | (50 | ) | (16 | ) | (141 | ) | (38 | ) | (47 | ) | (62 | ) | (67 | ) | (215 | ) | ||||||||||||||||||||||||||||||
Share-based compensation2 | 4 | 4 | 3 | 3 | 14 | 3 | 4 | 4 | 3 | 14 | 3 | 6 | 9 | 10 | 28 | |||||||||||||||||||||||||||||||||||||||||||||
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Unallocated corporate overhead costs excluding share-based compensation expenses1,3 | (42 | ) | (33 | ) | (29 | ) | (32 | ) | (137 | ) | (38 | ) | (30 | ) | (46 | ) | (13 | ) | (127 | ) | (35 | ) | (41 | ) | (53 | ) | (58 | ) | (187 | ) | ||||||||||||||||||||||||||||||
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Quarterly Group and segmental information
US - revenue and Adjusted EBITDA US GAAP4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$m (except | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Average monthly players (‘000s) | 1,648 | 1,292 | 1,312 | 1,975 | 1,557 | 2,359 | 2,016 | 1,860 | 3,039 | 2,319 | 3,449 | 2,789 | 2,564 | 4,032 | 3,209 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook stakes | 3,743 | 3,294 | 2,907 | 5,531 | 15,474 | 7,650 | 6,556 | 5,279 | 9,544 | 29,029 | 10,943 | 8,181 | 7,384 | 14,570 | 41,078 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook net revenue margin | 4.4 | % | 8.2 | % | 6.3 | % | 6.6 | % | 6.4 | % | 4.2 | % | 7.9 | % | 8.6 | % | 8.6 | % | 7.3 | % | 7.0 | % | 9.6 | % | 6.9 | % | 7.0 | % | 7.5 | % | ||||||||||||||||||||||||||||||
Sportsbook | 166 | 271 | 184 | 365 | 985 | 318 | 517 | 456 | 818 | 2,109 | 762 | 783 | 506 | 1,026 | 3,076 | |||||||||||||||||||||||||||||||||||||||||||||
iGaming | 137 | 141 | 132 | 159 | 568 | 184 | 180 | 179 | 218 | 761 | 262 | 262 | 271 | 326 | 1,121 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 94 | 96 | 74 | 98 | 362 | 78 | 77 | 73 | 88 | 316 | 71 | 74 | 69 | 73 | 287 | |||||||||||||||||||||||||||||||||||||||||||||
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Total revenue | 397 | 507 | 389 | 622 | 1,915 | 580 | 775 | 708 | 1,124 | 3,187 | 1,095 | 1,118 | 845 | 1,425 | 4,484 | |||||||||||||||||||||||||||||||||||||||||||||
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Adjusted EBITDA | (113 | ) | (367 | ) | (170 | ) | (61 | ) | (711 | ) | (203 | ) | 14 | (103 | ) | (55 | ) | (347 | ) | (95 | ) | 122 | (89 | ) | 127 | 65 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | (28.5 | %) | (72.3 | %) | (43.6 | %) | (9.9 | %) | (37.1 | %) | (35.0 | %) | 1.8 | % | (14.6 | %) | (4.9 | %) | (10.9 | %) | (8.7 | %) | 10.9 | % | (10.6 | %) | 8.9 | % | 1.4 | % | ||||||||||||||||||||||||||||||
Share-based compensation expense2 | (6 | ) | 385 | 24 | 19 | 421 | 22 | 7 | 27 | 28 | 84 | 24 | 31 | 22 | 25 | 102 | ||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA1,3 | (119 | ) | 18 | (146 | ) | (42 | ) | (289 | ) | (180 | ) | 21 | (76 | ) | (27 | ) | (263 | ) | (71 | ) | 153 | (67 | ) | 152 | 167 | |||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA margin1,3 | (30.1 | %) | 3.5 | % | (37.5 | %) | (6.7 | %) | (15.1 | %) | (31.1 | %) | 2.7 | % | (10.7 | %) | (2.4 | %) | (8.2 | %) | (6.5 | %) | 13.7 | % | (8.0 | %) | 10.7 | % | 3.7 | % | ||||||||||||||||||||||||||||||
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Additional information: Segment operating expenses |
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Cost of sales | 230 | 267 | 219 | 316 | 1,032 | 382 | 443 | 432 | 590 | 1,848 | 664 | 626 | 511 | 799 | 2,602 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 33 | 114 | 34 | 54 | 235 | 34 | 51 | 16 | 43 | 144 | 56 | 40 | 65 | 65 | 225 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 254 | 207 | 238 | 284 | 982 | 302 | 231 | 259 | 419 | 1,211 | 381 | 228 | 252 | 336 | 1,197 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | (6 | ) | 286 | 67 | 30 | 377 | 64 | 36 | 104 | 127 | 331 | 89 | 102 | 106 | 97 | 395 | ||||||||||||||||||||||||||||||||||||||||||||
Additional information: Share-based compensation expense for segment operating expenses2 |
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Cost of sales | — | — | — | — | — | — | — | — | — | — | 3 | 4 | 3 | 3 | 12 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 4 | 90 | 10 | 9 | 114 | 7 | 23 | 10 | (8 | ) | 32 | 5 | 7 | 6 | 6 | 24 | ||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 1 | 41 | 6 | 5 | 53 | 3 | 1 | 7 | 1 | 11 | 3 | 4 | 3 | 3 | 13 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | (12 | ) | 254 | 8 | 5 | 254 | 13 | (18 | ) | 11 | 34 | 41 | 13 | 16 | 11 | 12 | 53 | |||||||||||||||||||||||||||||||||||||||||||
Additional information: Segment operating expenses excluding share based payments2 |
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Cost of sales | 230 | 267 | 219 | 316 | 1,032 | 382 | 443 | 432 | 590 | 1,848 | 662 | 623 | 509 | 796 | 2,589 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 28 | 24 | 24 | 45 | 121 | 28 | 28 | 6 | 51 | 112 | 50 | 32 | 59 | 59 | 201 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 252 | 166 | 232 | 279 | 929 | 300 | 230 | 252 | 418 | 1,200 | 378 | 224 | 249 | 333 | 1,185 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 6 | 32 | 59 | 25 | 123 | 51 | 54 | 93 | 93 | 290 | 76 | 86 | 95 | 84 | 341 |
Quarterly Group and segmental information
UKI - revenue and Adjusted EBITDA US GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$m (except AMPS and %) | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Average monthly players (‘000s) | 3,167 | 3,440 | 3,060 | 2,946 | 3,153 | 3,627 | 3,781 | 3,459 | 3,973 | 3,710 | 4,024 | 4,108 | 3,625 | 3,888 | 3,911 | |||||||||||||||||||||||||||||||||||||||||||||
Online sportsbook stakes | 4,249 | 3,916 | 3,119 | 3,137 | 14,421 | 3,072 | 2,774 | 2,250 | 2,616 | 10,714 | 2,820 | 2,826 | 2,408 | 2,667 | 10,722 | |||||||||||||||||||||||||||||||||||||||||||||
Online sportsbook net revenue margin | 10.6 | % | 10.7 | % | 9.8 | % | 7.2 | % | 9.7 | % | 9.8 | % | 11.6 | % | 10.4 | % | 9.3 | % | 10.2 | % | 11.0 | % | 11.8 | % | 11.1 | % | 11.1 | % | 11.3 | % | ||||||||||||||||||||||||||||||
Retail sportsbook stakes | 3 | 287 | 503 | 448 | 1,241 | 442 | 455 | 376 | 396 | 1,669 | 420 | 440 | 404 | 386 | 1,650 | |||||||||||||||||||||||||||||||||||||||||||||
Retails sportsbook net revenue margin | (6.1 | %) | 12.7 | % | 12.5 | % | 12.8 | % | 12.6 | % | 13.4 | % | 13.1 | % | 13.9 | % | 13.8 | % | 13.5 | % | 15.4 | % | 15.1 | % | 15.0 | % | 15.8 | % | 15.3 | % | ||||||||||||||||||||||||||||||
Total sportsbook stakes | 4,252 | 4,203 | 3,622 | 3,585 | 15,662 | 3,515 | 3,229 | 2,626 | 3,012 | 12,382 | 3,240 | 3,266 | 2,812 | 3,054 | 12,372 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook net revenue margin | 10.6 | % | 10.8 | % | 10.1 | % | 7.9 | % | 9.9 | % | 10.2 | % | 11.8 | % | 10.9 | % | 9.9 | % | 10.7 | % | 11.6 | % | 12.3 | % | 11.6 | % | 11.7 | % | 11.8 | % | ||||||||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Online sportsbook | 450 | 419 | 305 | 225 | 1,400 | 300 | 321 | 233 | 244 | 1,097 | 312 | 334 | 267 | 297 | 1,209 | |||||||||||||||||||||||||||||||||||||||||||||
Online iGaming | 271 | 259 | 231 | 232 | 993 | 273 | 270 | 254 | 282 | 1,078 | 290 | 310 | 321 | 363 | 1,284 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 60 | 59 | 49 | 40 | 208 | 38 | 44 | 35 | 35 | 152 | 41 | 49 | 42 | 48 | 180 | |||||||||||||||||||||||||||||||||||||||||||||
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Total online revenue | 781 | 737 | 584 | 497 | 2,600 | 611 | 634 | 522 | 560 | 2,327 | 643 | 693 | 630 | 708 | 2,674 | |||||||||||||||||||||||||||||||||||||||||||||
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Retail sportsbook | (0 | ) | 37 | 63 | 57 | 156 | 59 | 60 | 52 | 55 | 226 | 65 | 66 | 61 | 61 | 253 | ||||||||||||||||||||||||||||||||||||||||||||
Retail Gaming | (0 | ) | 22 | 31 | 30 | 82 | 29 | 28 | 25 | 28 | 111 | 28 | 29 | 31 | 32 | 121 | ||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
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Total retail revenue | (0 | ) | 58 | 93 | 87 | 239 | 88 | 88 | 78 | 83 | 337 | 93 | 96 | 91 | 93 | 373 | ||||||||||||||||||||||||||||||||||||||||||||
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Sportsbook | 450 | 456 | 368 | 283 | 1,556 | 359 | 380 | 286 | 298 | 1,323 | 376 | 400 | 327 | 358 | 1,462 | |||||||||||||||||||||||||||||||||||||||||||||
Gaming | 271 | 281 | 261 | 262 | 1,075 | 302 | 298 | 279 | 310 | 1,189 | 319 | 339 | 351 | 395 | 1,404 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 60 | 59 | 49 | 40 | 208 | 38 | 44 | 35 | 35 | 152 | 41 | 49 | 42 | 48 | 180 | |||||||||||||||||||||||||||||||||||||||||||||
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Total revenue | 781 | 796 | 677 | 585 | 2,839 | 699 | 722 | 600 | 643 | 2,664 | 736 | 788 | 721 | 801 | 3,047 | |||||||||||||||||||||||||||||||||||||||||||||
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Adjusted EBITDA | 244 | 229 | 174 | 135 | 781 | 151 | 236 | 173 | 198 | 757 | 202 | 240 | 180 | 266 | 888 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 31.2 | % | 28.8 | % | 25.6 | % | 23.0 | % | 27.5 | % | 21.5 | % | 32.7 | % | 28.9 | % | 30.7 | % | 28.4 | % | 27.4 | % | 30.4 | % | 28.6 | % | 37.6 | % | 29.1 | % | ||||||||||||||||||||||||||||||
Share-based compensation expense2 | 4 | 4 | 4 | 5 | 16 | 3 | 5 | 4 | 6 | 19 | 4 | 9 | 4 | 5 | 23 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA1,3 | 247 | 233 | 178 | 139 | 798 | 154 | 241 | 178 | 204 | 777 | 206 | 249 | 185 | 271 | 911 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA margin1,3 | 31.7 | % | 29.3 | % | 26.3 | % | 23.8 | % | 28.1 | % | 22.0 | % | 33.4 | % | 29.6 | % | 31.6 | % | 29.1 | % | 28.0 | % | 31.6 | % | 25.6 | % | 33.8 | % | 29.9 | % | ||||||||||||||||||||||||||||||
Additional information: Segment operating expenses |
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Cost of sales | 272 | 291 | 263 | 221 | 1,047 | 272 | 269 | 215 | 224 | 981 | 264 | 276 | 285 | 290 | 1,115 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 49 | 47 | 36 | 29 | 162 | 41 | 43 | 33 | 22 | 139 | 36 | 39 | 38 | 46 | 160 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 149 | 164 | 141 | 151 | 605 | 160 | 136 | 116 | 132 | 545 | 154 | 144 | 152 | 144 | 593 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 67 | 64 | 64 | 49 | 244 | 75 | 38 | 61 | 67 | 242 | 80 | 90 | 65 | 56 | 291 | |||||||||||||||||||||||||||||||||||||||||||||
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Additional information: Share-based compensation expense for segment operating expenses2 |
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Cost of sales | 1 | 1 | 4 | (3 | ) | 4 | 1 | 0 | 0 | 1 | 3 | 0 | 1 | 0 | 1 | 2 | ||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 0 | 1 | 1 | (0 | ) | 1 | 1 | 1 | 1 | 1 | 4 | 1 | 2 | 1 | 1 | 5 | ||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 0 | 0 | 0 | (0 | ) | 0 | 1 | 0 | 1 | 2 | 3 | 0 | 1 | 0 | 0 | 2 | ||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 2 | 2 | (1 | ) | 8 | 11 | 1 | 4 | 2 | 2 | 9 | 3 | 6 | 2 | 3 | 14 | ||||||||||||||||||||||||||||||||||||||||||||
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Additional information: Segment operating expenses excluding share based payments2 |
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Cost of sales | 271 | 289 | 259 | 224 | 1,043 | 271 | 269 | 215 | 223 | 978 | 264 | 275 | 285 | 290 | 1,114 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 49 | 47 | 35 | 30 | 161 | 40 | 42 | 32 | 21 | 135 | 36 | 37 | 37 | 45 | 155 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 149 | 164 | 140 | 151 | 605 | 159 | 136 | 116 | 130 | 542 | 153 | 143 | 152 | 143 | 592 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 65 | 62 | 65 | 41 | 233 | 74 | 34 | 59 | 65 | 233 | 77 | 84 | 63 | 53 | 277 | |||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Group and segmental information
Australia- revenue and Adjusted EBITDA US GAAP | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$m (except | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Average monthly players (‘000s) | 831 | 982 | 1,086 | 1,133 | 1,008 | 915 | 1,072 | 1,100 | 1,275 | 1,090 | 993 | 1,139 | 1,124 | 1,189 | 1,111 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook stakes | 3,379 | 3,561 | 4,581 | 4,563 | 16,084 | 3,387 | 3,377 | 3,377 | 3,767 | 13,908 | 3,143 | 2,959 | 2,928 | 3,021 | 12,051 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook net revenue margin | 11.4 | % | 12.0 | % | 11.2 | % | 10.0 | % | 11.1 | % | 11.5 | % | 12.0 | % | 11.1 | % | 10.3 | % | 11.2 | % | 11.2 | % | 13.2 | % | 11.3 | % | 12.4 | % | 12.0 | % | ||||||||||||||||||||||||||||||
Sportsbook | 385 | 429 | 513 | 455 | 1,782 | 390 | 404 | 374 | 389 | 1,558 | 351 | 389 | 332 | 376 | 1,447 | |||||||||||||||||||||||||||||||||||||||||||||
iGaming | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
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Total revenue | 385 | 429 | 513 | 455 | 1,782 | 390 | 404 | 374 | 389 | 1,558 | 351 | 389 | 332 | 376 | 1,447 | |||||||||||||||||||||||||||||||||||||||||||||
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Adjusted EBITDA | 147 | 129 | 183 | 139 | 598 | 140 | 141 | 96 | 100 | 477 | 84 | 105 | 61 | 98 | 348 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 38.2 | % | 30.1 | % | 35.7 | % | 30.5 | % | 33.6 | % | 35.8 | % | 34.9 | % | 25.7 | % | 25.6 | % | 30.6 | % | 23.9 | % | 27.0 | % | 18.4 | % | 26.1 | % | 24.1 | % | ||||||||||||||||||||||||||||||
Share-based compensation expense2 | 2 | 2 | 2 | 2 | 7 | 1 | 3 | 2 | 2 | 8 | 1 | 2 | 2 | 2 | 8 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA1,3 | 149 | 131 | 185 | 140 | 605 | 141 | 144 | 99 | 102 | 485 | 85 | 108 | 63 | 100 | 356 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA margin1,3 | 38.7 | % | 30.6 | % | 36.0 | % | 30.8 | % | 34.0 | % | 36.1 | % | 35.6 | % | 26.4 | % | 26.1 | % | 31.1 | % | 24.2 | % | 27.6 | % | 19.0 | % | 26.7 | % | 24.6 | % | ||||||||||||||||||||||||||||||
Additional information: Segment operating expenses |
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Cost of sales | 178 | 203 | 236 | 240 | 857 | 184 | 185 | 189 | 195 | 754 | 187 | 198 | 182 | 198 | 764 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 8 | 9 | 7 | 9 | 32 | 6 | 8 | 7 | 7 | 28 | 10 | 6 | 10 | 6 | 32 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 41 | 69 | 66 | 56 | 232 | 46 | 54 | 63 | 66 | 229 | 52 | 57 | 58 | 57 | 225 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 11 | 20 | 21 | 11 | 63 | 13 | 16 | 19 | 21 | 70 | 18 | 23 | 20 | 16 | 78 | |||||||||||||||||||||||||||||||||||||||||||||
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Additional information: Share-based compensation expense for segment operating expenses2 |
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Cost of sales | 1 | 1 | 1 | (0 | ) | 2 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 0 | 0 | 0 | (0 | ) | 1 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 0 | 0 | 0 | (0 | ) | 0 | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 1 | 1 | (0 | ) | 2 | 4 | 1 | 3 | 2 | 2 | 8 | 1 | 2 | 2 | 2 | 8 | ||||||||||||||||||||||||||||||||||||||||||||
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Additional information: Segment operating expenses excluding share based payments2 |
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Cost of sales | 177 | 202 | 235 | 240 | 855 | 184 | 185 | 189 | 195 | 754 | 187 | 198 | 182 | 198 | 764 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 7 | 8 | 7 | 9 | 31 | 6 | 8 | 7 | 7 | 28 | 10 | 6 | 10 | 6 | 32 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 41 | 69 | 65 | 57 | 232 | 46 | 54 | 63 | 66 | 229 | 52 | 57 | 58 | 57 | 225 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 10 | 19 | 21 | 9 | 59 | 12 | 13 | 17 | 19 | 62 | 16 | 21 | 19 | 14 | 70 | |||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Group and segmental information
International - revenue and Adjusted EBITDA US GAAP4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$m (except | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Average monthly players (‘000s) | 2,223 | 2,476 | 2,353 | 2,661 | 2,428 | 2,622 | 2,878 | 3,176 | 3,827 | 3,126 | 3,884 | 4,186 | 3,827 | 4,479 | 4,094 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook stakes | 623 | 585 | 481 | 501 | 2,190 | 494 | 431 | 823 | 1,260 | 3,008 | 1,263 | 1,175 | 1,042 | 1,322 | 4,802 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook net revenue margin | 8.7 | % | 9.6 | % | 8.5 | % | 7.7 | % | 8.7 | % | 9.0 | % | 9.1 | % | 12.1 | % | 11.4 | % | 10.8 | % | 14.1 | % | 13.0 | % | 11.8 | % | 11.1 | % | 12.5 | % | ||||||||||||||||||||||||||||||
Sportsbook | 54 | 56 | 41 | 39 | 190 | 44 | 39 | 100 | 143 | 326 | 178 | 152 | 122 | 146 | 599 | |||||||||||||||||||||||||||||||||||||||||||||
iGaming | 405 | 375 | 344 | 348 | 1,472 | 367 | 319 | 421 | 515 | 1,622 | 531 | 521 | 513 | 530 | 2,096 | |||||||||||||||||||||||||||||||||||||||||||||
Other | 25 | 29 | 27 | 30 | 111 | 28 | 26 | 25 | 27 | 107 | 27 | 31 | 25 | 34 | 117 | |||||||||||||||||||||||||||||||||||||||||||||
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Total revenue | 484 | 459 | 412 | 417 | 1,772 | 439 | 385 | 546 | 685 | 2,055 | 736 | 704 | 660 | 711 | 2,812 | |||||||||||||||||||||||||||||||||||||||||||||
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Adjusted EBITDA | 148 | 74 | 84 | 62 | 368 | 90 | 43 | 101 | 161 | 395 | 157 | 148 | 146 | 140 | 592 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 30.7 | % | 16.2 | % | 20.2 | % | 14.8 | % | 20.8 | % | 20.5 | % | 11.3 | % | 18.4 | % | 23.5 | % | 19.2 | % | 21.4 | % | 21.0 | % | 22.1 | % | 19.7 | % | 21.1 | % | ||||||||||||||||||||||||||||||
Share-based compensation expense2 | 5 | 7 | 14 | (1 | ) | 25 | 11 | 11 | 21 | (22 | ) | 22 | 10 | 15 | (13 | ) | 23 | 35 | ||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA1,3 | 153 | 81 | 98 | 61 | 393 | 102 | 54 | 122 | 139 | 417 | 167 | 164 | 134 | 163 | 627 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA margin1,3 | 31.6 | % | 17.6 | % | 23.7 | % | 14.6 | % | 22.1 | % | 23.2 | % | 14.0 | % | 22.3 | % | 20.3 | % | 20.3 | % | 22.7 | % | 23.2 | % | 20.2 | % | 23.0 | % | 22.3 | % | ||||||||||||||||||||||||||||||
Additional information: Segment operating expenses |
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Cost of sales | 168 | 170 | 172 | 174 | 685 | 175 | 156 | 236 | 328 | 894 | 341 | 313 | 295 | 338 | 1,286 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 31 | 32 | 38 | 43 | 144 | 33 | 38 | 38 | 59 | 169 | 42 | 63 | 46 | 50 | 202 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 93 | 120 | 66 | 98 | 377 | 91 | 100 | 95 | 142 | 429 | 117 | 112 | 107 | 86 | 421 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 43 | 63 | 52 | 40 | 198 | 50 | 48 | 76 | (5 | ) | 168 | 79 | 69 | 66 | 96 | 310 | ||||||||||||||||||||||||||||||||||||||||||||
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Additional information: Share-based compensation expense for segment operating expenses2 |
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Cost of sales | 0 | 0 | 1 | 1 | 3 | 0 | 1 | 0 | 2 | 3 | 0 | 0 | 0 | 0 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 1 | 1 | 2 | 2 | 6 | 0 | 2 | 0 | 3 | 5 | 0 | (0 | ) | 1 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 0 | 2 | 3 | 0 | (0 | ) | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 3 | 5 | 11 | (5 | ) | 14 | 11 | 6 | 21 | (28 | ) | 10 | 9 | 16 | (14 | ) | 23 | 34 | ||||||||||||||||||||||||||||||||||||||||||
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Additional information: Segment operating expenses excluding share based payments2 |
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Cost of sales | 168 | 170 | 171 | 173 | 682 | 175 | 155 | 235 | 326 | 891 | 341 | 312 | 295 | 338 | 1,286 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 30 | 32 | 36 | 41 | 138 | 33 | 35 | 38 | 56 | 163 | 42 | 64 | 45 | 50 | 201 | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 93 | 119 | 66 | 98 | 376 | 91 | 99 | 94 | 140 | 425 | 117 | 112 | 107 | 86 | 421 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 40 | 57 | 42 | 45 | 184 | 38 | 41 | 56 | 23 | 158 | 70 | 53 | 80 | 73 | 276 | |||||||||||||||||||||||||||||||||||||||||||||
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1 | Further Adjusted EBITDA and Further Adjusted EBITDA margin on a Group and segment basis, Group Adjusted EBITDA and Group Adjusted EBITDA margin are all non-GAAP financial measures. See the ‘Quarterly Non-GAAP Recs’ section of this pack for reconciliations to the most directly comparable financial measures calculated in accordance with U.S. GAAP. |
2 | From January 1, 2024, Adjusted EBITDA will exclude the cost of share-based compensation expense and the term Further Adjusted EBITDA will become redundant. This change is not reflected in fiscal year 2023 reporting, it will be effective for Q1 2024 reporting. We have however included a reconciliation of the segment cost of sales and operating expenses including share-based compensation expense to the segment operating expense excluding share based payments in this pack. |
3 | Further Adjusted EBITDA is defined as Adjusted EBITDA excluding share-based compensation expense to reflect comparable numbers for the change taking effect from 1 January 2024. From 1 January 2024 Adjusted EBITDA will exclude the cost of share-based compensation expense. We believe that this presentation is common practice in our industry and improves comparability of our results with those of our peers. |
4 | From 1 January 2024, the Group will move PokerStars US to be reported in the International division reflecting how the business is now managed. This change is not be reflected in fiscal year 2023 reporting and is therefore not reflected in the historic comparative information provided in this pack. This will be effective for Q1 2024 reporting, at which point historic comparatives will be recast. As such, please refer to the ‘2024 Policy Changes’ section in this pack where a summary of PokerStars US historical financial information is provided enabling adjustments to be made after fiscal year 2023 reporting, but ahead of Q1 2024 reporting. To make these adjustments the PokerStars US numbers provided must be added to the International segment and subtracted from the US segment numbers. |
5 | Due to rounding, these numbers may not add up precisely to the total provided within this document and the 10-K. |
US GAAP - Group consolidated cash flow statement
$m | FY 2021 | FY 2022 | FY 2023 | |||||||||
Cash flows from operating activities: | ||||||||||||
Net loss | (757 | ) | (370 | ) | (1,211 | ) | ||||||
Adjustments to reconcile net loss to net cash from operating activities: | ||||||||||||
Depreciation and amortization | 1,010 | 1,075 | 1,285 | |||||||||
Impairment Loss | — | — | 725 | |||||||||
Change in fair value of derivatives | (141 | ) | (152 | ) | (7 | ) | ||||||
Non-cash interest (income) / expense, net | 17 | 7 | (12 | ) | ||||||||
Non-cash operating lease expense | 70 | 96 | 117 | |||||||||
Unrealized foreign currency exchange (gain) / loss | 101 | 196 | (225 | ) | ||||||||
Loss/(gain) on disposal | (16 | ) | — | 5 | ||||||||
Share-based compensation – equity classified | 63 | 132 | 180 | |||||||||
Share-based compensation – liability classified | 425 | 49 | 10 | |||||||||
Other (expense)/income, net | 69 | (89 | ) | 163 | ||||||||
Deferred tax benefit | (12 | ) | (145 | ) | (132 | ) | ||||||
Loss / (gain) on extinguishment of long-term debt | (130 | ) | 65 | 6 | ||||||||
Change in contingent consideration | 7 | (6 | ) | (2 | ) | |||||||
Change in operating assets and liabilities: | ||||||||||||
Player deposits | — | (72 | ) | (1 | ) | |||||||
Accounts receivable | (17 | ) | (12 | ) | 23 | |||||||
Prepaid expenses and other current assets | (41 | ) | (97 | ) | 146 | |||||||
Accounts payable | (1 | ) | (24 | ) | (4 | ) | ||||||
Other current liabilities | (117 | ) | 207 | 366 | ||||||||
Player deposit liability | 80 | 376 | (382 | ) | ||||||||
Operating leases liabilities | (57 | ) | (73 | ) | (113 | ) | ||||||
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Net cash provided by operating activities | 553 | 1,163 | 937 | |||||||||
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Cash flows from investing activities: | ||||||||||||
Purchases of property and equipment | (122 | ) | (122 | ) | (159 | ) | ||||||
Purchases of intangible assets | (85 | ) | (100 | ) | (175 | ) | ||||||
Capitalized software | (152 | ) | (207 | ) | (268 | ) | ||||||
Acquisitions, net of cash acquired | (70 | ) | (2,095 | ) | | — | | |||||
Proceeds from disposal of property and equipment | 175 | 7 | — | |||||||||
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Net cash used in investing activities | (254 | ) | (2,517 | ) | (602 | ) | ||||||
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Cash flows from financing activities: | ||||||||||||
Proceeds from issue of common share upon exercise of options | 18 | 9 | 13 | |||||||||
Proceeds from issuance of long-term debt (net of transaction costs) | 1,661 | 4,692 | 2,018 | |||||||||
Repayment of long-term debt | (1,033 | ) | (2,646 | ) | (1,837 | ) | ||||||
Acquisition of non-controlling interests | — | (251 | ) | (95 | ) | |||||||
Distributions to non-controlling interests | (23 | ) | (7 | ) | — | |||||||
Payment of contingent consideration | (10 | ) | (11 | ) | — | |||||||
Repurchase of common share | (252 | ) | (3 | ) | (212 | ) | ||||||
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Net cash (used in)/provided by financing activities | 361 | 1,783 | (113 | ) | ||||||||
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Net increase in cash, cash equivalents and restricted cash | 660 | 429 | 222 | |||||||||
Cash, cash equivalents and restricted cash – Beginning of period | 2,151 | 2,681 | 2,990 | |||||||||
Foreign currency exchange gain/(loss) on cash and cash equivalents | (130 | ) | (120 | ) | 59 | |||||||
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Cash, cash equivalents and restricted cash – end of period | 2,681 | 2,990 | 3,271 | |||||||||
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Cash, cash equivalents and restricted cash comprise of: | ||||||||||||
Cash and cash equivalents | 1,286 | 966 | 1,497 | |||||||||
Cash and cash equivalents—restricted | 10 | 16 | 22 | |||||||||
Player deposits – cash and cash equivalents | 1,385 | 2,008 | 1,752 | |||||||||
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Cash, cash equivalents and restricted cash – end of year | 2,681 | 2,990 | 3,271 | |||||||||
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Supplemental disclosures of cash flow information: | ||||||||||||
Interest paid | 214 | 222 | 408 | |||||||||
Income taxes paid (net of refunds) | 191 | 199 | 255 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
Purchase of intangible assets with accrued expense | — | 21 | — | |||||||||
Operating lease right-of-use assets obtained in exchange of operating lease liabilities | 135 | 148 | 73 | |||||||||
Adjustments to lease balances as a result of remeasurement | 20 | 18 | 22 | |||||||||
Business acquisitions (including contingent consideration) | 24 | — | — | |||||||||
Cancellation of Treasury Shares | 60 | — | — | |||||||||
Reduction in capital | 13,631 | — | — | |||||||||
Proceeds from issuance as part of debt restructuring | — | — | 5,267 | |||||||||
Principal amount of extinguishment as part of debt restructuring | — | — | 4,622 |
Non-GAAP reconciliations
Group Adjusted EBITDA reconciliation | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$m | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | 121 | (516 | ) | (224 | ) | (137 | ) | (757 | ) | (105 | ) | 19 | (201 | ) | (84 | ) | (370 | ) | (251 | ) | 204 | (287 | ) | (877 | ) | (1,211 | ) | |||||||||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | 27 | 201 | (15 | ) | (19 | ) | 194 | 21 | 28 | 92 | (66 | ) | 75 | 98 | (53 | ) | 16 | 59 | 120 | |||||||||||||||||||||||||||||||||||||||||
Other (expense)/income, net | (88 | ) | 16 | (97 | ) | 68 | (101 | ) | (91 | ) | 27 | (32 | ) | 91 | (5 | ) | 45 | (11 | ) | 44 | 80 | 157 | ||||||||||||||||||||||||||||||||||||||
Interest expense, net | 53 | 54 | 107 | — | 215 | 41 | 35 | 52 | 84 | 212 | 92 | 83 | 92 | 117 | 385 | |||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 250 | 257 | 252 | 247 | 1,010 | 244 | 263 | 255 | 315 | 1,075 | 298 | 302 | 317 | 367 | 1,285 | |||||||||||||||||||||||||||||||||||||||||||||
Transaction fees and associated costs1 | — | — | — | 29 | 29 | 5 | 8 | 12 | 18 | 43 | 3 | 17 | 26 | 45 | 92 | |||||||||||||||||||||||||||||||||||||||||||||
Restructuring and integration costs2 | 14 | 14 | 17 | 20 | 63 | 21 | 21 | 39 | 74 | 155 | 25 | 26 | 28 | 46 | 126 | |||||||||||||||||||||||||||||||||||||||||||||
Legal settlements/(loss contingencies)3 | 3 | 3 | 198 | 19 | 223 | — | — | — | (44 | ) | (44 | ) | (1 | ) | — | — | 1 | — | ||||||||||||||||||||||||||||||||||||||||||
Gaming tax expenses4 | — | — | — | 10 | 10 | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Impairment of PPE and Intangible Assets5 | — | — | — | — | — | — | — | — | — | — | — | — | — | 725 | 725 | |||||||||||||||||||||||||||||||||||||||||||||
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Adjusted EBITDA | 380 | 29 | 238 | 238 | 886 | 137 | 401 | 217 | 388 | 1,142 | 310 | 568 | 236 | 564 | 1,678 | |||||||||||||||||||||||||||||||||||||||||||||
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Revenue | 2,047 | 2,191 | 1,992 | 2,078 | 8,308 | 2,108 | 2,287 | 2,227 | 2,842 | 9,463 | 2,918 | 3,000 | 2,559 | 3,312 | 11,790 | |||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA margin | 18.6 | % | 1.3 | % | 12.0 | % | 11.5 | % | 10.7 | % | 6.5 | % | 17.5 | % | 9.7 | % | 13.6 | % | 12.1 | % | 10.6 | % | 18.9 | % | 9.2 | % | 17.0 | % | 14.2 | % | ||||||||||||||||||||||||||||||
Add back: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | 7 | 402 | 47 | 27 | 484 | 42 | 30 | 59 | 17 | 147 | 43 | 64 | 25 | 64 | 196 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA | 387 | 430 | 286 | 266 | 1,369 | 178 | 430 | 276 | 405 | 1,289 | 352 | 632 | 261 | 629 | 1,874 | |||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA margin | 18.9 | % | 19.6 | % | 14.3 | % | 12.8 | % | 16.5 | % | 8.5 | % | 18.8 | % | 12.4 | % | 14.2 | % | 13.6 | % | 12.1 | % | 21.1 | % | 10.2 | % | 19.0 | % | 15.9 | % |
1 | Fees primarily associated with (i) transaction fees related to the proposed listing of Flutter’s ordinary shares in the U.S. of $86 million for the year ended December 31, 2023; (ii) Fox Option arbitration proceedings of $30 million and acquisition-related costs in connection with tombola and Sisal of $11 million for the year ended December 31, 2022; and (iii) advisory fees related to the potential listing of a minority stake of FanDuel in the U.S., which was announced in May 2021, of $13 million, Fox Option arbitration proceedings of $8 million, and acquisition-related costs in connection with Junglee Games, Singular, Sisal and tombola for fiscal 2021 of $8 million. |
2 | During the year ended December 31, 2023 costs of $126 million (year ended December 31, 2022: $155 million) primarily relate to various restructuring and other strategic initiatives to drive increased synergies arising primarily from the acquisitions of TSG and Sisal. These actions include efforts to consolidate and integrate our technology infrastructure, back-office functions and relocate certain operations to lower cost locations. The costs primarily include severance expenses, advisory fees and temporary staffing cost. Costs also include implementation costs of an enterprise resource planning system that could not be capitalized. |
3 | Relates to (i) release of legacy TSG legal provisions of $44 million for fiscal 2022 and (ii) settlement of a historic case in the Commonwealth of Kentucky against certain subsidiaries of legacy TSG of $223 million for fiscal 2021. |
4 | Relates to the late payment interest regarding a historical German tax assessment on Betfair Exchange in 2012. |
5 | In the fourth quarter of 2023, the Group recognized an intangible asset impairment loss of $725 million in sales and marketing expenses related to PokerStars trademark within the International segment. The impairment was primarily driven by an assessment of strategy and operational model aimed at maximizing the value of PokerStars’ proprietary poker assets consistent with our International segment strategy to combine global scale with local presence. |
6 | Due to rounding, these numbers may not add up precisely to the total provided within this document and the 10-K. |
Non-GAAP reconciliations
Group adjusted free cash flow | ||||||||||||
$m | FY 2021 | FY 2022 | FY 2023 | |||||||||
Net cash provided by operating activities | 553 | 1,163 | 937 | |||||||||
Less: | ||||||||||||
Change in player deposits | — | 72 | 1 | |||||||||
Change in player deposit liability | (80 | ) | (376 | ) | 382 | |||||||
Add cash impact of: | ||||||||||||
Transaction fees and associated costs | 23 | 32 | 83 | |||||||||
Restructuring and integration costs | 61 | 114 | 137 | |||||||||
Legal settlement/loss contingencies | 223 | — | — | |||||||||
Less cash impact of: | ||||||||||||
Purchase of property and equipment | (122 | ) | (122 | ) | (159 | ) | ||||||
Purchases of intangible assets | (85 | ) | (100 | ) | (175 | ) | ||||||
Capitalized software | (152 | ) | (207 | ) | (268 | ) | ||||||
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Adjusted free cash flow | 421 | 576 | 938 | |||||||||
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Group adjusted net debt reconciliation | ||||||||||||
$m | FY 2021 | FY 2022 | FY 2023 | |||||||||
Long-term debt | 4,797 | 6,707 | 7,005 | |||||||||
Long-term debt due within one year | 30 | 43 | 51 | |||||||||
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Total Debt | 4,827 | 6,750 | 7,056 | |||||||||
Add: | ||||||||||||
Transactions costs, premiums or discount included in the carrying value of debt | 57 | 41 | 54 | |||||||||
Less: | ||||||||||||
Unrealized foreign exchange on translation of foreign currency debt 1 | (32 | ) | (151 | ) | 182 | |||||||
Cash and cash equivalents | (1,287 | ) | (966 | ) | (1,497 | ) | ||||||
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Adjusted Net Debt | 3,565 | 5,674 | 5,795 | |||||||||
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1 | Representing the adjustment for foreign exchange that is economically hedged as a result of our cross-currency interest rate swaps to reflect the net cash outflow on maturity. |
Non-GAAP reconciliations
Adjusted net profit attributable to Flutter shareholders | ||||||||||||
$m | FY 2021 | FY 2022 | FY 2023 | |||||||||
Net loss | (757 | ) | (370 | ) | (1,211 | ) | ||||||
Add (Less): | ||||||||||||
Transaction fees and associated costs | 29 | 43 | 92 | |||||||||
Restructuring and integration costs | 63 | 155 | 126 | |||||||||
Legal settlements/loss contingencies | 223 | (44 | ) | — | ||||||||
Gaming tax dispute | 10 | — | — | |||||||||
Impairment of PPE and Intangible Assets | — | — | 725 | |||||||||
Amortization of acquired intangibles | 738 | 749 | 791 | |||||||||
Accelerated amortization | — | 30 | ||||||||||
Loss/(gain) on settlement of long-term debt | (130 | ) | 65 | 6 | ||||||||
Financing related fees not eligible for capitalization | 27 | 9 | 29 | |||||||||
Gain from disposal of Oddschecker Global Media | (17 | ) | — | |||||||||
Share-based compensation | 484 | 147 | 196 | |||||||||
Tax impact of above adjustments 2 | (67 | ) | (199 | ) | (150 | ) | ||||||
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Adjusted net profit | 604 | 556 | 634 | |||||||||
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Less: | ||||||||||||
Net gain/loss attributable to non-controlling interests and redeemable non-controlling interests3 | (13 | ) | (1 | ) | 13 | |||||||
Adjustment of redeemable non-controlling interest to redemption value4 | 179 | 63 | (2 | ) | ||||||||
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Adjusted net profit attributable to Flutter shareholders | 438 | 494 | 623 | |||||||||
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Weighted average number of shares | 176 | 177 | 177 |
2 | Tax rates used in calculated adjusted net profit attributable to Flutter shareholders is the statutory tax rate applicable of the geographies in which the adjustments were incurred. |
3 | Represents net loss attributed to the non-controlling interest in Sisal and the redeemable non-controlling interest in FanDuel, Junglee and Adjarabet (2022). |
4 | Represents the adjustment made to the carrying value of the redeemable non-controlling interests in Junglee and Adjarabet (2022) to account for the higher of (i) the initial carrying amount adjusted for cumulative earnings allocations, or (ii) redemption value at each reporting date through retained earnings. |
5 | Due to rounding, these numbers may not add up precisely to the total provided within this document and the 10-K. |
Adjusted earnings per share | ||||||||||||
$ | FY 2021 | FY 2022 | FY 2023 | |||||||||
Net loss per Flutter shareholders | (5.25 | ) | (2.44 | ) | (6.89 | ) | ||||||
Add (Less): | ||||||||||||
Transaction fees and associated costs | 0.16 | 0.24 | 0.52 | |||||||||
Restructuring and integration costs | 0.36 | 0.88 | 0.71 | |||||||||
Legal settlements/loss contingencies | 1.27 | (0.25 | ) | — | ||||||||
Gaming tax dispute | 0.06 | — | — | |||||||||
Impairment of PPE and Intangible Assets | — | — | 4.09 | |||||||||
Amortization of acquired intangibles | 4.20 | 4.24 | 4.46 | |||||||||
Accelerated amortization | 0.17 | |||||||||||
Loss/(gain) on settlement of long-term debt | (0.74 | ) | 0.37 | 0.03 | ||||||||
Financing related fees not eligible for capitalization | 0.15 | 0.05 | 0.16 | |||||||||
Gain from disposal of Oddschecker Global Media | (0.10 | ) | — | — | ||||||||
Share—based compensation | 2.75 | 0.83 | 1.11 | |||||||||
Tax impact of above adjustments 2 | (0.38 | ) | (1.12 | ) | (0.85 | ) | ||||||
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Adjusted earnings per share | 2.49 | 2.79 | 3.51 | |||||||||
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2024 Accounting policy changes1
From 1 January 2024, PokerStars US will be included in the International division for reporting purposes reflecting how the business is now managed. This change is not be reflected in fiscal year 2023 reporting and is therefore not reflected in the historic comparative information provided in this pack. This will be effective for Q1 2024 reporting, at which point historic comparatives will be recast. As such, please refer to the summary of PokerStars US historical financial information below enabling adjustments to be made after fiscal year 2023 reporting, but ahead of Q1 2024 reporting. To make these adjustments the PokerStars US numbers provided must be added to the International segment and subtracted from the US segment numbers.
PokerStars US
$m (except AMPS and %) | Q1 2021 | Q2 2021 | Q3 2021 | Q4 2021 | FY 2021 | Q1 2022 | Q2 2022 | Q3 2022 | Q4 2022 | FY 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | |||||||||||||||||||||||||||||||||||||||||||||
Average monthly players (‘000s) | 100 | 87 | 78 | 85 | 88 | 84 | 66 | 66 | 69 | 71 | 71 | 57 | 52 | 49 | 57 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook stakes | 112 | 81 | 64 | 104 | 361 | 68 | 43 | 34 | 45 | 190 | 34 | 23 | 6 | — | 62 | |||||||||||||||||||||||||||||||||||||||||||||
Sportsbook net revenue margin | 4.4 | % | 3.5 | % | 2.9 | % | 2.9 | % | 3.5 | % | 3.6 | % | 4.1 | % | 7.5 | % | 3.8 | % | 4.5 | % | 8.6 | % | 6.0 | % | (6.3 | %) | 0.0 | % | 6.3 | % | ||||||||||||||||||||||||||||||
Sportsbook | 5 | 3 | 2 | 3 | 12 | 2 | 2 | 3 | 2 | 8 | 3 | 1 | (0 | ) | (0 | ) | 4 | |||||||||||||||||||||||||||||||||||||||||||
iGaming | 28 | 27 | 22 | 21 | 99 | 20 | 18 | 18 | 18 | 73 | 21 | 19 | 18 | 17 | 76 | |||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
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Total revenue | 33 | 30 | 24 | 24 | 111 | 22 | 20 | 20 | 19 | 82 | 24 | 21 | 18 | 17 | 80 | |||||||||||||||||||||||||||||||||||||||||||||
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Adjusted EBITDA | (30 | ) | (20 | ) | (12 | ) | (16 | ) | (77 | ) | (18 | ) | (17 | ) | (17 | ) | (38 | ) | (91 | ) | (18 | ) | (19 | ) | (13 | ) | (15 | ) | (65 | ) | ||||||||||||||||||||||||||||||
Adjusted EBITDA margin | (89.5 | %) | (66.0 | %) | (48.6 | %) | (66.3 | %) | (69.3 | %) | (81.0 | %) | (84.3 | %) | (85.6 | %) | (197.2 | %) | (110.5 | %) | (73.6 | %) | (93.5 | %) | (70.5 | %) | (89.8 | %) | (81.4 | %) | ||||||||||||||||||||||||||||||
Share-based compensation expense | 0 | 0 | 0 | 0 | 0 | (0 | ) | 1 | 1 | 1 | 2 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||
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Further Adjusted EBITDA | (30 | ) | (20 | ) | (12 | ) | (16 | ) | (77 | ) | (18 | ) | (16 | ) | (16 | ) | (37 | ) | (88 | ) | (18 | ) | (19 | ) | (13 | ) | (15 | ) | (65 | ) | ||||||||||||||||||||||||||||||
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Further Adjusted EBITDA margin | (89.4 | %) | (65.9 | %) | (48.5 | %) | (66.2 | %) | (69.2 | %) | (81.1 | %) | (80.6 | %) | (81.9 | %) | (193.2 | %) | (107.7 | %) | (72.9 | %) | (92.0 | %) | (70.3 | %) | (89.7 | %) | (80.8 | %) | ||||||||||||||||||||||||||||||
Additional information: Segment operating expenses |
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Cost of sales | 24 | 23 | 18 | 16 | 81 | 14 | 17 | 14 | 15 | 59 | 15 | 16 | 12 | 14 | 56 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 2 | 3 | 2 | 2 | 9 | 2 | (0 | ) | 3 | (1 | ) | 4 | 2 | (0 | ) | 2 | 1 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 33 | 20 | 9 | 15 | 76 | 15 | 11 | 9 | 22 | 58 | 14 | 11 | 4 | 6 | 35 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 4 | 4 | 7 | 7 | 22 | 9 | 9 | 12 | 22 | 51 | 12 | 14 | 13 | 11 | 50 | |||||||||||||||||||||||||||||||||||||||||||||
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Additional information: Share-based compensation expense for segment operating expenses2 |
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Cost of sales | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 0 | 0 | 0 | 0 | 0 | (0 | ) | 1 | 1 | 1 | 2 | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
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Additional information: Segment cost of sales and operating expenses excluding share based payments2 |
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Cost of sales | 24 | 23 | 18 | 16 | 81 | 14 | 17 | 14 | 15 | 59 | 15 | 16 | 12 | 14 | 56 | |||||||||||||||||||||||||||||||||||||||||||||
Technology, research and development expenses | 2 | 3 | 2 | 2 | 9 | 2 | (0 | ) | 3 | (1 | ) | 4 | 2 | (0 | ) | 2 | 1 | 5 | ||||||||||||||||||||||||||||||||||||||||||
Sales & marketing expenses | 33 | 20 | 9 | 15 | 76 | 15 | 11 | 9 | 22 | 58 | 14 | 11 | 4 | 6 | 35 | |||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 4 | 4 | 7 | 7 | 22 | 9 | 9 | 11 | 21 | 49 | 11 | 13 | 13 | 11 | 49 | |||||||||||||||||||||||||||||||||||||||||||||
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1 | Accounting policy changes are effective from 1 January 2024 and will be reflected in Q1 reporting. Prior year comparatives will be recast for these changes. |
2 | From January 1, 2024, Adjusted EBITDA will exclude the cost of share-based payments and the term Further Adjusted EBITDA will become redundant. This change is not reflected in fiscal year 2023 reporting, it will be effective for Q1 2024 reporting. We have however included a reconciliation of the segment cost of sales and operating expenses including share based payments to the segment cost of sales and operating expense excluding share based payments in this pack. |
3 | Due to rounding, these numbers may not add up precisely to the total provided within this document and the 10-K. |
Non-GAAP Measures
Non-GAAP financial measures disclaimer
This pack includes Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Further Adjusted EBITDA Margin, Adjusted net profit attributable to Flutter shareholders, Adjusted earnings per share (Adjusted EPS), Segment Further Adjusted EBITDA, Net Debt and Adjusted Free Cash Flow, which are non-GAAP financial measures that we use to supplement our results presented in accordance with U.S. generally accepted accounting principles (“GAAP”). These non-GAAP measures are presented solely as supplemental disclosures to reported GAAP measures because we believe that these non-GAAP measures are useful in evaluating our operating performance, similar to measures reported by its publicly-listed U.S. competitors, and regularly used by analysts, lenders, financial, institutional and retail investors as measures of performance. Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Further Adjusted EBITDA Margin, Adjusted net profit attributable to Flutter shareholders, Adjusted earnings per share (Adjusted EPS), Segment Further Adjusted EBITDA, Net Debt and Adjusted Free Cash Flow, are not intended to be substitutes for any GAAP financial measures, and, as calculated, may not be comparable to other similarly titled measures of performance of other companies in other industries or within the same industry.
Definitions of non-GAAP financial measures
Adjusted EBITDA is defined on a Group basis as net profit/(loss) before income taxes; other (expense)/income, net; interest expense, net; depreciation and amortization; transaction fees and associated costs; restructuring and integration costs; legal settlements (loss contingencies) gaming taxes expenses and impairment of PPE and intangible assets.
Further Adjusted EBITDA is defined as Adjusted EBITDA excluding share-based payments. From January 1, 2024, Adjusted EBITDA will exclude the cost of share-based payments and the term Further Adjusted EBITDA will become redundant. We believe that this presentation is common practice in our industry and improves comparability of our results with those of our peers. From January 1, 2024, Adjusted EBITDA will exclude the cost of share-based compensation. We believe that this presentation is common practice in our industry and improves comparability of our results with those of our peers.
Segment Further Adjusted EBITDA is defined as segment Adjusted EBITDA which is our segment measure of profit or loss excluding share-based compensation. Segment Further Adjusted EBITDA Margin is segment Adjusted Further Adjusted EBITDA as a percentage of revenue. From January 1, 2024, Adjusted EBITDA will exclude the cost of share-based compensation. We believe that this presentation is common practice in our industry and improves comparability of our results with those of our peers
Adjusted EBITDA Margin and Further Adjusted EBITDA Margin are Adjusted EBITDA and Further Adjusted EBITDA as a percentage of revenue, respectively.
Adjusted net profit attributable to Flutter shareholders is net profit/(loss) as adjusted for after tax effects of transaction fees and associated costs; restructuring and integration costs; legal settlements (loss contingencies), gaming taxes, disputes, amortization of acquired intangibles, accelerate amortization, loss/(gain) on settlement of long-term debt, financing related fees not eligible for capitalization, gain from disposal of businesses and share-based compensation.
Adjusted EPS is calculated by dividing adjusted net income attributable to Flutter shareholders by the number of diluted weighted-average ordinary shares outstanding in the period.
Net debt is defined as total debt, excluding premiums, discounts, and deferred financing expenses, and the effect of foreign exchange that is economically hedged as a result of our cross-currency interest rate swaps reflecting the net cash outflow on maturity less cash and cash equivalents.
Adjusted Free Cash Flow is defined as net cash provided by operating activities excluding changes in operating assets and liabilities related to player deposits, investment and player deposit liabilities, cash paid for transaction fees and associated cost, restructuring fees and integration cost, legal settlement/loss contingencies less payments for property and equipment, intangible assets and capitalized software. We believe that excluding these items from adjusted free cash flow better portrays our ability to generate cash, as such items are not indicative of our operating performance for the period.
Usefulness of non-GAAP financial measures
Adjusted EBITDA, Further Adjusted EBITDA, Adjusted EBITDA Margin, Further Adjusted EBITDA Margin, Adjusted net profit attributable to Flutter shareholders, Segment Further Adjusted EBITDA and Adjusted earnings per share (Adjusted EPS) are non-GAAP measures and should not be viewed as measures of overall operating performance, indicators of our performance, considered in isolation, or construed as alternatives to operating profit/(loss), net profit/(loss) measures or earnings per share, or as alternatives to cash flows from operating activities, as measures of liquidity, or as alternatives to any other measure determined in accordance with GAAP. Management has historically used these measures when evaluating operating performance because we believe that they provide additional perspective on the financial performance of our core business
We believe net debt is a meaningful financial measure that may assist investors in understanding our financial condition and recognizing underlying trends in our capital structure.
Adjusted free cash flow may be useful to investors and other users of our financial statements as a supplemental measure of our cash performance, but should not be considered in isolation, as a measure of residual cash flow available for discretionary purposes, or as an alternative to operating cash flows presented in accordance with GAAP. Adjusted free cash flow does not necessarily represent funds available for discretionary use and is not necessarily a measure of our ability to fund our cash needs. Our calculation of adjusted free cash flow may differ from similarly titled measures used by other companies, limiting their usefulness as a comparative measure.