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International Game Technology PLC Reports Third Quarter 2018 Results

Published

7 years ago

October 31, 2018

International Game Technology PLC Reports Third Quarter 2018 Results Reading Time: 15 minutes

– Solid Lottery and Gaming KPIs drive strong third quarter results
– Net income was $22 million in the third quarter; Adjusted net income was $64 million
– Adjusted EBITDA of $443 million reflects strong Italy and global Lottery performance
– Full-year Adjusted EBITDA outlook narrowed to $1,740 – $1,780 million, the top half of the prior range
– Cash dividend declared of $0.20 per ordinary share

International Game Technology PLC (“IGT”) (NYSE:IGT) today reported financial results for the third quarter ended September 30, 2018. Today, at 8:00 a.m. EDT, management will host a conference call and webcast to present the third quarter results; access details are provided below.

“Solid performance and important, long-term contracts drove very good third quarter and year-to-date results,” said Marco Sala, CEO of IGT. “Global Lottery same-store revenues for instants and draw games rose mid-single digits. The installed base of gaming machines was up, and unit shipments of gaming machines increased 10%. And, we enjoyed particularly strong sales and profit growth in Italy, confirming the vitality of that important market. We are firmly on track to achieve our 2018 financial and operational goals.”

“We’ve delivered Adjusted EBITDA growth of 4% and 7% for the third quarter and year-to-date periods at constant currency and scope,” said Alberto Fornaro, CFO of IGT. “As a result, we are narrowing our Adjusted EBITDA outlook for 2018 to $1,740 – $1,780 million, the top half of the prior range.”

Overview of Consolidated Third Quarter Results


	Quarter Ended September 30,		Y/Y Change	Constant Currency Change
	2018⁽¹⁾	2017	(%)	(%)
(In $ millions, unless otherwise noted)
Revenue	1,156	1,221	-5%	-4%
Operating income	200	(556)	NM
Net income/(loss) per diluted share	$0.11	($3.95)	NM
Net debt	7,570	7,335	3%
Adjusted EBITDA	443	428	3%	4%
Adjusted operating income	257	258	0%	0%
Adjusted net income per diluted share	$0.31	$0.40	-23%

Note: Adjusted EBITDA, adjusted operating income, and adjusted net income per diluted share are non-GAAP financial measures. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided at the end of this news release.

⁽¹⁾On January 1, 2018, IGT adopted ASU 2014-09 (Topic 606), Revenue from Contracts with Customers (“ASC 606”). This negatively impacted Revenue in the third quarter by $22 million and positively impacted Adjusted EBITDA by $12 million. Comparative schedules summarizing the impact on the third quarter and nine months ended September 30, 2018 Condensed Consolidated Statements of Operations are included later in this release.

Consolidated revenue was $1,156 million, down 4% at constant currency

$22 million negative impact due to ASC 606
Impacted by lumpiness of product sales and timing of multi-state jackpots
Strong global Lottery performance, improved Gaming KPIs, and broad-based strength in Italy

Adjusted EBITDA rose 3% to $443 million; Adjusted operating income was unchanged from prior year at $257 million

Disciplined expense management more than offset lower revenue
Adjusted operating income includes higher depreciation associated with recent Lottery contract extensions and upgrading of Gaming installed base

Interest expense was $107 million compared to $114 million in prior-year quarter

Provision for income taxes was $46 million compared to a benefit of $20 million in the prior-year period

Net income attributable to IGT was $22 million in the quarter; Adjusted net income attributable to IGT was $64 million

Net income per diluted share of $0.11; Adjusted net income per diluted share of $0.31

Cash from operations was $249 million for the first nine months of the year and capital expenditures were $374 million

$366 million (gross) upfront payments for the Scratch & Win license in Italy

Cash and cash equivalents were $448 million as of September 30, 2018, compared to $1,057 million as of December 31, 2017

Net debt was $7,570 million as of September 30, 2018, compared to $7,319 million as of December 31, 2017

Operating Segment Review

North America Gaming & Interactive

Select Financial Data					Constant	Key Performance Indicators			%
Period Ended September 30			Q3 ’18	Q3 ’17	FX	Period Ended September 30	Q3 ’18	Q3 ’17	Change
Gaming	Total Revenue		231	262	-12%	Installed base (end of period)
	Gaming Services		152	171	-11%	Casino	23,357	22,924	1.9%
		Terminal	106	123	-14%
		Social (DDI)	0	0	0%	Machine units shipped
		Other	46	48	-4%	New/Expansion	843	729	15.6%
	Product Sales		79	91	-13%	Replacement	2,998	2,868	4.5%
		Terminal	54	46	17%	Total machines shipped	3,841	3,597	6.8%
		Other	25	44	-44%

Total	Revenue		231	262	-12%
Total	Operating Income		45	65	-33%

Revenue of $231 million compared to $262 million in the prior-year quarter

Decline of $14 million, or 5%, after adjusting for $17 million jackpot expense reclass
Gaming services revenue of $152 million compared to $171 million in the prior year
- Stable after adjusting for jackpot expense reclass
- Installed base up 433 units from prior year; yields and installed base stable sequentially
Product sales revenue of $79 million compared to $91 million in the prior year
- 16% increase in terminal sale revenue includes growth in casino replacement and VLT units, higher average selling prices
- Large software sale in prior year

Operating income of $45 million compared to $65 million in the prior-year quarter

Large, high-margin product sales mix in the prior year
Increased depreciation related to upgrading installed base
Timing of jackpots

North America Lottery

Select Financial Data					Constant	Key Performance Indicators			%
Period Ended September 30			Q3 ’18	Q3 ’17	FX	Period Ended September 30	Q3 ’18	Q3 ’17	Change
Gaming	Total Revenue		37	48	-22%	Installed base (end of period)
	Gaming Services		37	40	-6%	VLT – Government Sponsored	14,965	15,225	-1.7%
		Terminal	25	25	-1%
		Other	12	14	-16%	Lottery same-store revenue growth
	Product Sales		0	8	-98%	Instants & draw games			4.8%
						Multistate Jackpots			-25.9%
Lottery	Total Revenue		242	259	-7%	Total lottery same-store revenue growth			-0.6%
	Lottery Services		225	237	-5%
		FM/Concessions	164	170	-4%
		LMA	25	34	-25%
		Other Services	36	33	8%
	Product Sales		17	22	-22%
		Terminal	0	1	-100%
		Systems/Other	17	22	-20%

Total	Revenue		279	307	-9%
Total	Operating Income		60	75	-20%

Revenue of $279 million compared to $307 million in prior-year period

Lottery service revenue down 5% to $225 million
- 4.8% same-store revenue growth for instant tickets and draw-based games more than offset by significantly lower multistate jackpot activity
- Lower LMA revenue from Illinois
Lottery product sales of $17 million compared to $22 million in prior year
- Growth in instant ticket printing
- Large VLT system and lottery terminal sales in prior year

Operating income of $60 million compared to $75 million in prior-year period

Tough jackpot and product sales revenue comparisons
Higher depreciation related to recent contract wins and extensions

International

Select Financial Data					Constant	Key Performance Indicators			%
Period Ended September 30			Q3 ’18	Q3 ’17	FX	Period Ended September 30	Q3 ’18	Q3 ’17	Change
Gaming	Total Revenue		98	128	-20%	Installed base (end of period)
	Gaming Services		33	59	-40%	Casino	12,332	13,022	-5.3%
		Terminal	13	14	7%	VLT – Government Sponsored	3,675	1,569	134.2%
		Other	19	45	-55%	Total installed base	16,007	14,591	9.7%
	Product Sales		65	69	-2%
		Terminal	47	43	15%	Machine units shipped
		Other	18	26	-30%	New/Expansion	529	176	200.6%
						Replacement	2,681	2,633	1.8%
Lottery	Total Revenue		100	82	23%	Total machines shipped	3,210	2,809	14.3%
	Lottery Services		69	70	0%
		FM/Concessions	54	52	6%	Lottery same-store revenue growth
		Other Services	15	18	-18%	Instants & draw games			3.8%
	Product Sales		31	12	162%	Multistate Jackpots			2.7%
		Systems/Other	31	12	162%	Total lottery same-store revenue growth			3.7%

Other	Total Revenue		18	24	-23%
	Service Revenue		17	18	-1%
	Product Sales		0	6	-92%

Total	Revenue		216	234	-5%
Total	Operating Income		56	40	46%

Revenue down 5% in constant currency to $216 million

Stable Lottery service revenue
- Same-store revenue growth of 3.7%
- Lower non-wager revenue compared to prior year
Significant increase in Lottery product sales from large, multi-year software license
Gaming service revenue of $33 million compared to $59 million in the prior year
- Prior year had benefit of certain discrete, non-recurring items
- Jackpot expense reclass of $3 million
- Service revenue from terminals up high single-digits at constant currency from growth in the installed base
Gaming product sales revenue down 2% in constant currency to $65 million
- 14% increase in gaming machine unit shipments; higher average selling prices
- Lower systems revenue

Operating income up 46% at constant currency to $56 million

High-margin software license sale
Disciplined expense management

Italy

Select Financial Data					Constant	Key Performance Indicators			%
Period Ended September 30			Q3 ’18	Q3 ’17	FX	Period Ended September 30	Q3 ’18	Q3 ’17	Change
Gaming	Total Revenue		175	173	2%	(In € millions, except machines)
	Gaming Services		175	173	2%	Lottery
		Terminal	159	157	2%	Lotto wagers	1,913	1,815	5.4%
		Other	16	16	5%	10eLotto	1,361	1,261	7.9%
	Product Sales		0	0	0%	Core	434	494	-12.2%
						Late Numbers	70	60	17.9%
Lottery	Total Revenue		184	180	4%	MillionDAY	47	–	NM
	Lottery Services		184	180	4%
		FM/Concessions	233	229	3%	Scratch & Win Wagers	2,179	2,198	-0.9%
		Other Services	(49)	(50)	-1%
	Product Sales		0	0	0%	Italy lottery revenue growth			3.6%

Other	Total Revenue		70	66	8%	Gaming
	Service Revenue		70	66	8%	Installed base (end of period)
	Product Sales		0	0	0%	VLT – Operator (B2C)	11,027	10,958	0.6%
						VLT – Supplier (B2B)	8,094	8,752	-7.5%
Total	Revenue		430	418	4%	AWP	43,074	59,084	-27.1%
Total	Operating Income		145	126	17%	Total Installed Base	62,195	78,794	-21.1%

						Wagers
						VLT – Operator (B2C)	1,426	1,329	7.3%
						AWP	879	948	-7.2%
						Interactive Wagers (Gaming)	447	404	10.5%

						Other
						Sports Betting Wagers¹	225	204	9.9%
						Sports Betting Payout (%)¹	81.1%	83.3%	-2.1 pp

						¹Includes Virtual Wagers and Pools & Horses

Revenue up 4% at constant currency to $430 million with growth across all Gaming businesses

Lottery Service revenue up to $184 million from $180 million in the prior year
- Lotto wagers up 5.4% on continued strength in 10eLotto and contribution from MillionDAY
- Scratch & Win wagers down modestly on comparison with successful relaunch of Miliardario in the prior-year period
Gaming Service revenue up 2% at constant currency
- Higher revenue despite state-mandated reductions in AWP units, incremental taxes, and certain regional restrictions
- Strong underlying productivity
Sports betting wagers increased 9.9% to €225 million, payout 210 basis points better

Operating income increased to $145 million, up 17% at constant currency

Strong profit flow-through, especially for Lotteries
Disciplined cost management

Other Developments

The Company’s board of directors declared a quarterly cash dividend of $0.20 per ordinary share

Record date of November 14, 2018
Payment date of November 28, 2018

Recent Capital Markets Activity

Issuance of $750 million 6.25% Senior Secured Notes due 2027
Net proceeds used to redeem $600 million 5.625% bonds due 2020, $144 million 7.50% notes due 2019, and $97 million of its 5.5% bonds due 2020, with the balance funded through utilization of the revolving credit facility
Average debt maturity extended to over 4 years

Full Year Outlook

Narrowing 2018 Adjusted EBITDA outlook to $1,740 – $1,780 million at a EUR/USD rate of 1.19, the top half of the prior range
Continue to expect capital expenditures of $575–$625 million

Conference Call and Webcast

October 31, 2018, at 8:00 a.m. EDT

Live webcast available under “News, Events & Presentations” on IGT’s Investor Relations website at www.IGT.com; replay available on the website following the live event

Dial-In Numbers

US/Canada toll-free dial-in number is +1 844 842 7999
Outside the US/Canada toll-free number is +1 612 979 9887
Conference ID/confirmation code is 9277539
A telephone replay of the call will be available for one week
- US/Canada replay number is +1 855 859 2056
- Outside the US/Canada replay number is +1 404 537 3406
- ID/Confirmation code is 9277539

Comparability of Results

All figures presented in this news release are prepared under U.S. GAAP, unless noted otherwise. Adjusted figures exclude the impact of items such as purchase accounting, impairment charges, restructuring expense, foreign exchange, and certain one-time, primarily transaction-related items. Reconciliations to the most directly comparable U.S. GAAP measures are included in the tables in this news release. Constant currency changes for 2018 are calculated using the same foreign exchange rates as the corresponding 2017 period. Management uses non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate the Company’s financial performance. Management believes these non-GAAP financial measures reflect the Company’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of business trends. These constant currency changes and non-GAAP financial measures should however be viewed in addition to, and not as an alternative for, the Company’s reported results prepared in accordance with U.S. GAAP.

About IGT
IGT (NYSE:IGT) is the global leader in gaming. We enable players to experience their favorite games across all channels and regulated segments, from Gaming Machines and Lotteries to Digital and Social Gaming. Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, our gaming solutions anticipate the demands of consumers wherever they decide to play. We have a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and create value by adhering to the highest standards of service, integrity, and responsibility. IGT has over 12,000 employees. For more information, please visit www.IGT.com.

Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements (including within the meaning of the Private Securities Litigation Reform Act of 1995) concerning International Game Technology PLC and its consolidated subsidiaries (the “Company”) and other matters. These statements may discuss goals, intentions, and expectations as to future plans, trends, events, dividends, results of operations, or financial condition, or otherwise, based on current beliefs of the management of the Company as well as assumptions made by, and information currently available to, such management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “would,” “should,” “shall”, “continue,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or the negative or other variations of them. These forward-looking statements speak only as of the date on which such statements are made and are subject to various risks and uncertainties, many of which are outside the Company’s control. Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may differ materially from those predicted in the forward-looking statements and from past results, performance, or achievements. Therefore, you should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include (but are not limited to) the factors and risks described in the Company’s annual report on Form 20-F for the financial year ended December 31, 2017 and other documents filed from time to time with the SEC, which are available on the SEC’s website at www.sec.gov and on the investor relations section of the Company’s website at www.IGT.com. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. You should carefully consider these factors and other risks and uncertainties that affect the Company’s business. All forward-looking statements contained in this news release are qualified in their entirety by this cautionary statement.

Contact:
Robert K. Vincent, Corporate Communications, toll free in U.S./Canada +1 (844) IGT-7452; outside U.S./Canada +1 (401) 392-7452
James Hurley, Investor Relations, +1 (401) 392-7190
Simone Cantagallo, +39 06 51899030; for Italian media inquiries

International Game Technology PLC
Condensed Consolidated Statements of Operations
*($ and shares in thousands, except per share data)*
*Unaudited*

	For the three months ended
	September 30,
	2018	2017

Service revenue	963,265	1,013,054
Product sales	192,565	208,147
Total revenue	1,155,830	1,221,201

Cost of services	586,811	625,247
Cost of product sales	107,311	150,358
Selling, general and administrative	194,099	196,862
Research and development	63,277	79,009
Restructuring expense	2,768	9,976
Impairment loss	1,530	715,220
Transaction expense, net	6	627
Total operating expenses	955,802	1,777,299

Operating income (loss)	200,028	(556,098)

Interest income	3,249	2,906
Interest expense	(106,802)	(113,711)
Foreign exchange gain (loss), net	21,104	(117,526)
Other expense, net	(17,244)	(9,802)
Total non-operating expenses	(99,693)	(238,133)

Income (loss) before provision for (benefit from) income taxes	100,335	(794,231)

Provision for (benefit from) income taxes	46,327	(19,824)

Net income (loss)	54,008	(774,407)

Less: Net income attributable to non-controlling interests	31,709	29,207

Net income (loss) attributable to IGT PLC	22,299	(803,614)


Net income (loss) attributable to IGT PLC per common share – basic	0.11	(3.95)
Net income (loss) attributable to IGT PLC per common share – diluted	0.11	(3.95)

Weighted-average shares – basic	204,219	203,489
Weighted-average shares – diluted	204,344	203,489

International Game Technology PLC
Condensed Consolidated Statements of Operations
*($ and shares in thousands, except per share data)*
*Unaudited*

	For the nine months ended
	September 30,
	2018	2017

Service revenue	3,017,283	3,063,477
Product sales	547,841	529,812
Total revenue	3,565,124	3,593,289

Cost of services	1,812,553	1,866,281
Cost of product sales	333,065	403,056
Selling, general and administrative	605,405	607,571
Research and development	198,497	242,142
Restructuring expense	7,924	30,706
Impairment loss	1,530	715,220
Transaction expense (income), net	50	(26,682)
Total operating expenses	2,959,024	3,838,294

Operating income (loss)	606,100	(245,005)

Interest income	9,599	7,992
Interest expense	(323,320)	(344,494)
Foreign exchange gain (loss), net	96,955	(384,749)
Other expense, net	(45,567)	(33,247)
Total non-operating expenses	(262,333)	(754,498)

Income (loss) before provision for income taxes	343,767	(999,503)

Provision for income taxes	159,064	53,932

Net income (loss)	184,703	(1,053,435)

Less: Net income attributable to non-controlling interests	104,054	94,870

Net income (loss) attributable to IGT PLC	80,649	(1,148,305)


Net income (loss) attributable to IGT PLC per common share – basic	0.40	(5.66)
Net income (loss) attributable to IGT PLC per common share – diluted	0.39	(5.66)

Weighted-average shares – basic	204,009	203,002
Weighted-average shares – diluted	204,375	203,002

International Game Technology PLC
Condensed Consolidated Balance Sheets
*($ thousands)*
*Unaudited*

	September 30,	December 31,
	2018	2017
Assets
Current assets:
Cash and cash equivalents	447,550	1,057,418
Restricted cash and cash equivalents	255,470	248,012
Trade and other receivables, net	821,764	937,854
Inventories, net	332,921	319,545
Other current assets	469,741	407,520
Income taxes receivable	50,298	94,168
Total current assets	2,377,744	3,064,517
Systems, equipment and other assets related to contracts, net	1,390,707	1,434,194
Property, plant and equipment, net	184,425	193,723
Goodwill	5,697,030	5,723,815
Intangible assets, net	2,088,573	2,273,460
Other non-current assets	2,206,794	2,427,953
Deferred income taxes	37,706	41,546
Total non-current assets	11,605,235	12,094,691
Total assets	13,982,979	15,159,208

Liabilities, redeemable non-controlling interests, and shareholders’ equity
Current liabilities:
Accounts payable	1,040,701	1,240,753
Other current liabilities	1,161,113	1,780,875
Current portion of long-term debt	–	599,114
Short-term borrowings	29,957	–
Income taxes payable	82,127	55,935
Total current liabilities	2,313,898	3,676,677
Long-term debt, less current portion	7,987,583	7,777,445
Deferred income taxes	493,605	491,460
Income taxes payable	25,654	55,665
Other non-current liabilities	450,951	446,113
Total non-current liabilities	8,957,793	8,770,683
Total liabilities	11,271,691	12,447,360
Commitments and contingencies
Redeemable non-controlling interests and shareholders’ equity	2,711,288	2,711,848
Total liabilities, redeemable non-controlling interests, and shareholders’ equity	13,982,979	15,159,208

Condensed Consolidated Statements of Cash Flows
*($ thousands)*
*Unaudited*

	For the nine months ended
	September 30,
	2018	2017
Cash flows from operating activities
Net income (loss)	184,703	(1,053,435)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	312,203	289,088
Amortization	204,256	317,989
Service revenue amortization	164,952	155,318
Loss on extinguishment of debt	49,460	35,428
Stock-based compensation expense	24,944	5,102
Debt issuance cost amortization	16,511	16,602
Deferred income tax provision	11,815	(170,698)
Impairment loss	1,530	715,220
Foreign exchange (gain) loss, net	(96,955)	384,749
Gain on sale of Double Down Interactive LLC	–	(51,348)
Other non-cash costs, net	3,132	8,428
Changes in operating assets and liabilities:
Trade and other receivables	92,823	42,023
Inventories	(26,682)	16,526
Upfront Italian license fees	(366,270)	(185,368)
Accounts payable	(123,057)	(60,733)
Other assets and liabilities	(204,053)	(67,954)
Net cash provided by operating activities	249,312	396,937

Cash flows from investing activities
Capital expenditures	(374,313)	(552,169)
Proceeds from sale of assets	8,200	168,201
Proceeds from sale of Double Down Interactive LLC, net of cash divested	–	823,788
Other	2,064	1,990
Net cash (used in) provided by investing activities	(364,049)	441,810

Cash flows from financing activities
Principal payments on long-term debt	(1,658,753)	(1,601,134)
Dividends paid – non-controlling interests	(126,926)	(51,508)
Dividends paid	(122,394)	(121,840)
Return of capital – non-controlling interests	(64,974)	(62,538)
Net payments of financial liabilities	(36,407)	(32,495)
Payments in connection with the extinguishment of debt	(42,148)	(38,832)
Debt issuance costs paid	(10,199)	(16,350)
Net proceeds from short-term borrowings	29,957	–
Capital increase – non-controlling interests	135,536	127,211
Proceeds from long-term debt	1,415,762	938,160
Other	(18,051)	(24,785)
Net cash used in financing activities	(498,597)	(884,111)

Net decrease in cash and cash equivalents, and restricted cash	(613,334)	(45,364)
Effect of exchange rate changes on cash and cash equivalents, and restricted cash	10,924	40,858
Cash and cash equivalents, and restricted cash at the beginning of the period	1,305,430	541,316
Cash and cash equivalents, and restricted cash at the end of the period	703,020	536,810


*Supplemental Cash Flow Information:*
Interest paid	(419,508)	(397,555)
Income taxes paid	(125,388)	(159,613)

International Game Technology PLC
Net Debt
*($ thousands)*

	September 30,	December 31,
	2018	2017

7.500% Senior Secured Notes due July 2019	146,237	148,231
4.125% Senior Secured Notes due February 2020	504,248	833,655
5.625% Senior Secured Notes due February 2020	–	595,767
4.750% Senior Secured Notes due March 2020	441,871	585,171
5.500% Senior Secured Notes due June 2020	125,247	125,709
6.250% Senior Secured Notes due February 2022	1,457,021	1,470,075
4.750% Senior Secured Notes due February 2023	974,884	1,008,601
5.350% Senior Secured Notes due October 2023	61,005	61,082
3.500% Senior Secured Notes due July 2024	573,132	–
6.500% Senior Secured Notes due February 2025	1,088,008	1,086,913
6.250% Senior Secured Notes due January 2027	742,760	–
Senior Secured Notes, long-term	6,114,413	5,915,204

Revolving Credit Facilities due July 2021	147,951	76,880
Term Loan Facilities due January 2023	1,725,219	1,785,361
Long-term debt, less current portion	7,987,583	7,777,445

6.625% Senior Secured Notes due February 2018	–	599,114
Current portion of long-term debt	–	599,114

Short-term borrowings	29,957	–
Total debt	8,017,540	8,376,559

Less: Cash and cash equivalents	447,550	1,057,418

Net debt	7,569,990	7,319,141

Note: Net debt is a non-GAAP financial measure

International Game Technology PLC
Adjusted EBITDA and Free Cash Flow
Reconciliations of Non-GAAP Financial Measures
($ thousands)

	For the three months ended
	September 30,
	2018	2017

Net income (loss)	54,008	(774,407)
Provision for (benefit from) income taxes	46,327	(19,824)
Non-operating expenses	99,693	238,133
Depreciation	109,755	103,182
Amortization	67,806	99,562
Service revenue amortization	53,837	54,279
Stock-based compensation expense	7,825	1,829
Restructuring expense	2,768	9,976
Impairment loss	1,530	715,220
Transaction expense, net	6	627
Non-cash purchase accounting (excluding D&A)	(233)	(126)
Bad debt expense	–	4
Adjusted EBITDA	443,322	428,455



Cash flows from operating activities	129,162	73,013
Capital expenditures	(115,346)	(181,579)
Free Cash Flow	13,816	(108,566)

International Game Technology PLC
Adjusted EBITDA and Free Cash Flow
Reconciliations of Non-GAAP Financial Measures
($ thousands)

	For the nine months ended
	September 30,
	2018	2017

Net income (loss)	184,703	(1,053,435)
Provision for income taxes	159,064	53,932
Non-operating expenses	262,333	754,498
Depreciation	312,203	289,088
Amortization	204,256	317,989
Service revenue amortization	164,952	155,318
Stock-based compensation expense	24,944	5,102
Restructuring expense	7,924	30,706
Impairment loss	1,530	715,220
Transaction expense (income), net	50	(26,682)
Non-cash purchase accounting (excluding D&A)	(666)	(513)
Bad debt recovery	–	(17,858)
Adjusted EBITDA	1,321,293	1,223,365



Cash flows from operating activities	249,312	396,937
Capital expenditures	(374,313)	(552,169)
Free Cash Flow	(125,001)	(155,232)

International Game Technology PLC
ASC 606 – Revenue Recognition Impact
Condensed Consolidated Statements of Operations
*($ thousands, except per share data)*
*Unaudited*
	Q3 2018
	Under Prior Accounting	Revenue Recognition Adjustment	As Adjusted

Revenue	1,177,375	(21,545)	1,155,830
Operating expenses	(988,995)	33,193	(955,802)
Provision for income taxes	(46,006)	(321)	(46,327)
Net income attributable to IGT PLC	10,972	11,327	22,299

Net income attributable to IGT PLC per common share – basic	0.05	0.06	0.11
Net income attributable to IGT PLC per common share – diluted	0.05	0.06	0.11


	Q3 2018 YTD
	Under Prior Accounting	Revenue Recognition Adjustment	As Adjusted

Revenue	3,619,952	(54,828)	3,565,124
Operating expenses	(3,020,100)	61,076	(2,959,024)
Provision for income taxes	(159,342)	278	(159,064)
Net income attributable to IGT PLC	74,123	6,526	80,649

Net income attributable to IGT PLC per common share – basic	0.37	0.03	0.40
Net income attributable to IGT PLC per common share – diluted	0.36	0.03	0.39

International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)

	Quarter to date	Adjustments				Quarter to date
	September 2018			Impairment/	Transaction	September 2018
	As	Purchase	Foreign	Restructuring	and Refinancing	As
	Reported	Accounting	Exchange	Expense	Expense, net	Adjusted

Total revenue	1,155,830	(181)	–	–	–	1,155,649

Cost of services	586,811	(21,241)	–	–	–	565,570
Cost of product sales	107,311	(3,954)	–	–	–	103,357
Selling, general and administrative	194,099	(27,017)	–	–	–	167,082
Research and development	63,277	(232)	–	–	–	63,045
Restructuring expense	2,768	–	–	(2,768)	–	–
Impairment loss	1,530	–	–	(1,530)	–	–
Transaction expense, net	6	–	–	–	(6)	–
Total operating expenses	955,802	(52,444)	–	(4,298)	(6)	899,054

Operating income	200,028	52,263	–	4,298	6	256,595

Interest expense, net	(103,553)	524	–	–	–	(103,029)
Foreign exchange gain, net	21,104	–	(21,104)	–	–	–
Other (expense) income, net	(17,244)	–	–	–	19,875	2,631
Total non-operating expenses	(99,693)	524	(21,104)	–	19,875	(100,398)

Income before provision for income taxes	100,335	52,787	(21,104)	4,298	19,881	156,197

Provision for income taxes (a)	46,327	12,846	301	688	2	60,164

Net income	54,008	39,941	(21,405)	3,610	19,879	96,033

Less: Net income attributable to non-controlling interests	31,709	27	–	–	–	31,736

Net income attributable to IGT PLC	22,299	39,914	(21,405)	3,610	19,879	64,297

Net income per common share – diluted	0.11					0.31
Weighted-average shares – diluted	204,344					204,344

(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.

International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)

	Year to date	Adjustments				Year to date
	September 2018			Impairment/	Transaction	September 2018
	As	Purchase	Foreign	Restructuring	and Refinancing	As
	Reported	Accounting	Exchange	Expense	Expense, net	Adjusted

Total revenue	3,565,124	(540)	–	–	–	3,564,584

Cost of services	1,812,553	(63,457)	–	–	–	1,749,096
Cost of product sales	333,065	(11,735)	–	–	–	321,330
Selling, general and administrative	605,405	(80,602)	–	–	–	524,803
Research and development	198,497	(686)	–	–	–	197,811
Restructuring expense	7,924	–	–	(7,924)	–	–
Impairment loss	1,530	–	–	(1,530)	–	–
Transaction expense, net	50	–	–	–	(50)	–
Total operating expenses	2,959,024	(156,480)	–	(9,454)	(50)	2,793,040

Operating income	606,100	155,940	–	9,454	50	771,544

Interest expense, net	(313,721)	1,536	–	–	–	(312,185)
Foreign exchange gain, net	96,955	–	(96,955)	–	–	–
Other (expense) income, net	(45,567)	(2,184)	–	–	49,459	1,708
Total non-operating expenses	(262,333)	(648)	(96,955)	–	49,459	(310,477)

Income before provision for income taxes	343,767	155,292	(96,955)	9,454	49,509	461,067

Provision for income taxes (a)	159,064	37,101	6,630	1,829	2	204,626

Net income	184,703	118,191	(103,585)	7,625	49,507	256,441

Less: Net income attributable to non-controlling interests	104,054	77	–	–	–	104,131

Net income attributable to IGT PLC	80,649	118,114	(103,585)	7,625	49,507	152,310

Net income per common share – diluted	0.39					0.75
Weighted-average shares – diluted	204,375					204,375

(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.

International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)

	Quarter to date	Adjustments				Quarter to date
	September 2017			Impairment/	Transaction	September 2017
	As	Purchase	Foreign	Restructuring	and Refinancing	As
	Reported	Accounting	Exchange	Expense	Expense, net	Adjusted

Total revenue	1,221,201	(182)	–	–	–	1,221,019

Cost of services	625,247	(36,918)	–	–	–	588,329
Cost of product sales	150,358	(23,961)	–	–	–	126,397
Selling, general and administrative	196,862	(27,180)	–	–	–	169,682
Research and development	79,009	(15)	–	–	–	78,994
Restructuring expense	9,976	–	–	(9,976)	–	–
Impairment loss	715,220	–	–	(715,220)	–	–
Transaction expense, net	627	–	–	–	(627)	–
Total operating expenses	1,777,299	(88,074)	–	(725,196)	(627)	963,402

Operating (loss) income	(556,098)	87,892	–	725,196	627	257,617

Foreign exchange loss, net	(117,526)	–	117,526	–	–	–
Other expense, net	(9,802)	(84)	–	–	9,703	(183)
Interest expense, net	(110,805)	610	–	–	–	(110,195)
Total non-operating expenses	(238,133)	526	117,526	–	9,703	(110,378)

(Loss) income before (benefit from) provision for income taxes	(794,231)	88,418	117,526	725,196	10,330	147,239

(Benefit from) provision for income taxes (a)	(19,824)	30,834	26,056	2,998	(3,230)	36,834

Net (loss) income	(774,407)	57,584	91,470	722,198	13,560	110,405

Less: Net income attributable to non-controlling interests	29,207	26	–	–	–	29,233

Net (loss) income attributable to IGT PLC	(803,614)	57,558	91,470	722,198	13,560	81,172

Net (loss) income per common share – diluted	(3.95)					0.40
Weighted-average shares – diluted (b)	203,489					203,689

(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.

(b) Weighted-average shares – diluted, as adjusted, include shares that were excluded from the as reported computation, due to the net loss as reported.

International Game Technology PLC
Condensed Consolidated Statement of Operations
Reconciliation of Non-GAAP Financial Measures
($ and shares in thousands, except per share data)

	Year to date	Adjustments				Year to date
	September 2017			Impairment/	Transaction	September 2017
	As	Purchase	Foreign	Restructuring	and Refinancing	As
	Reported	Accounting	Exchange	Expense	Expense, net	Adjusted

Total revenue	3,593,289	(540)	–	–	–	3,592,749

Cost of services	1,866,281	(117,658)	–	–	–	1,748,623
Cost of product sales	403,056	(77,261)	–	–	–	325,795
Selling, general and administrative	607,571	(90,277)	–	–	–	517,294
Research and development	242,142	(426)	–	–	–	241,716
Restructuring expense	30,706	–	–	(30,706)	–	–
Impairment loss	715,220	–	–	(715,220)	–	–
Transaction expense, net	(26,682)	–	–	–	26,682	–
Total operating expenses	3,838,294	(285,622)	–	(745,926)	26,682	2,833,428

Operating (loss) income	(245,005)	285,082	–	745,926	(26,682)	759,321

Interest expense, net	(336,502)	2,415	–	–	–	(334,087)
Foreign exchange loss, net	(384,749)	–	384,749	–	–	–
Other (expense) income, net	(33,247)	1,567	–	–	35,428	3,748
Total non-operating expenses	(754,498)	3,982	384,749	–	35,428	(330,339)

(Loss) income before provision for income taxes	(999,503)	289,064	384,749	745,926	8,746	428,982

Provision for income taxes (a)	53,932	101,066	87,152	9,132	(88,159)	163,123

Net (loss) income	(1,053,435)	187,998	297,597	736,794	96,905	265,859

Less: Net income attributable to non-controlling interests	94,870	77	–	–	–	94,947

Net (loss) income attributable to IGT PLC	(1,148,305)	187,921	297,597	736,794	96,905	170,912

Net (loss) income per common share – diluted	(5.66)					0.84
Weighted-average shares – diluted (b)	203,002					203,303

(a) Adjustments for income taxes are determined based on the statutory tax rate in effect in the respective jurisdiction where the adjustment originated.

(b) Weighted-average shares – diluted, as adjusted, include shares that were excluded from the as reported computation, due to the net loss as reported.

INTERNATIONAL GAME TECHNOLOGY PLC

Select Financial Data					Constant	Key Performance Indicators			%
Period Ended September 30			Q3 ’18	Q3 ’17	FX	Period Ended September 30	Q3 ’18	Q3 ’17	Change
Gaming	Total Revenue		541	611	-10%	Installed base (end of period)
	Gaming Services		397	443	-9%	Casino	35,689	35,946	-0.7%
		Terminal	303	319	-4%	VLT – Government Sponsored (ex-Italy)	18,640	16,794	11.0%
		Social (DDI)	0	0	0%	VLT – Italy Supplier (B2B)	8,094	8,752	-7.5%
		Other	94	124	-23%	Total installed base	62,423	61,492	1.5%
	Product Sales		144	168	-13%	Yield	$27.84	$29.12	-4.4%
		Terminal	101	89	16%	(average revenue per unit per day)
		Other	43	79	-45%
						Additional Italian Network Details:
Lottery	Total Revenue		527	521	2%	VLT – Operator (B2C)	11,027	10,958	0.6%
	Lottery Services		479	487	-1%	AWP	43,074	59,084	-27.1%
		FM/Concessions	452	452	1%
		LMA	25	34	-25%	Machine units shipped
		Other Services	2	1	-17%	New/Expansion	1,372	905	51.6%
	Product Sales		48	34	42%	Replacement	5,679	5,501	3.2%
		Terminal	0	1	-60%	Total machines shipped	7,051	6,406	10.1%
		Systems/Other	48	34	44%
						Global lottery same-store revenue growth
Other	Total Revenue		88	89	0%	Instants & draw games			4.5%
	Service Revenue		88	84	6%	Multistate Jackpots			-23.1%
	Product Sales		0	6	-92%	Total lottery same-store revenue growth (ex-Italy)			0.4%
						Italy lottery revenue growth			3.6%
Consolidated	Revenue		1,156	1,221	-4%
	Operating Income:
		Segment Total	306	305	1%
		Purchase Accounting	(52)	(802)	93%
		Corporate Support	(54)	(59)	8%
		Total	200	(556)	NM

Source: International Game Technology PLC

Source: Latest News on European Gaming Media Network

Related Topics:gambling industry in Europe

George Miller

George Miller (Gyorgy Molnar) started his career in content marketing and has started working as an Editor/Content Manager for our company in 2016. George has acquired many experiences when it comes to interviews and newsworthy content becoming Head of Content in 2017. He is responsible for the news being shared on multiple websites that are part of the European Gaming Media Network.

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Latest News

Flutter Entertainment: Q2 2025 Update

Published

12 hours ago

August 8, 2025

George Miller

Reading Time: 39 minutes

Flutter Entertainment (NYSE: FLUT; LSE: FLTR) (“Flutter”) the world’s leading online sports betting and iGaming operator today announces Q2 results, and increased 2025 guidance.

Key financial highlights:

In $ millions except where stated otherwise	Three months ended June 30,
In $ millions except where stated otherwise	2025	2024	YOY

Average monthly players (AMPs) (‘000s)¹	15,978	14,344	+11%
Revenue	4,187	3,611	+16%
Net income	37	297	(88)%
Net income margin	0.9%	8.2%	(730)bps
Adjusted EBITDA²	919	738	+25%
Adjusted EBITDA margin²	21.9%	20.4%	+150bps
Earnings per share ($)	0.59	1.45	(59)%
Adjusted earnings per share ($)²	2.95	2.04	+45%
Net cash provided by operating activities	359	323	+11%
Free Cash Flow²	156	171	(9)%
Leverage ratio² (December 2024 2.2x)	3.2x
Leverage ratio including Snai²	3.0x

Q2 2025 overview

Adjusted EBITDA growth of 25% driven by 11% AMP and 16% revenue growth, as our US business continues to scale rapidly. Net income decline of 88% impacted by a non-cash charge related to the movement in the Fox Option valuation³, increased non-cash amortization of acquired intangibles and an increased income taxes expense
US: growth underpinned by sustained strength in pre-2024 launch states⁴ with FanDuel’s lead in iGaming extended; US revenue +17% (sportsbook +11% and iGaming +42%). Adjusted EBITDA of $400m includes the benefit of favorable sports results and strong operating leverage
International: revenue and adjusted EBITDA growth of 15% and 13% respectively, includes the benefit of Snai and NSX acquisitions. Excellent iGaming revenue growth of 27% driven by UK and Ireland (“UKI”), Southern Europe and Africa (“SEA”) and Asia Pacific (“APAC”). Sportsbook revenue growth of 4% reflects a very strong performance in the 2024 European Football Championships (“Euros”) in the prior year, and less favorable year-over-year sports results
Earnings per share decreased by $0.86 reflecting the non-cash movements noted above, with adjusted earnings per share increasing by $0.91 driven by strong adjusted EBITDA growth
Net cash provided by operating activities grew +11% while free cash flow² was 9% lower mainly due to an increase in capital expenditure from the Snai acquisition and increased technology investment across the Group

Updated full year 2025 guidance

2025 outlook⁵ is increased to include (i) the impact of US sports results⁶, (ii) the impact of US gaming tax changes, (iii) renegotiated US market access savings, and (iv) the impact of new state timings.

Group revenue and adjusted EBITDA are now expected to be $17.26bn and $3.295bn at the midpoint representing 23% and 40% year-over-year growth, respectively.

Peter Jackson, CEO, commented:

“I am pleased with the excellent underlying performance we have delivered in the second quarter alongside the good progress made on a number of key strategic initiatives. Revenue grew by 16% year-on-year, as we continue to build scale positions in the most attractive markets through strong organic growth and value creating M&A. Since Q1, Flutter gained additional US index inclusion and accelerated ownership of FanDuel to 100%. We also became the largest operator in Italy with the addition of Snai; established a scale position in Brazil through NSX; and successfully executed two transformative customer migrations. Such varied achievements in one quarter are a great reflection of our teams’ focus and ability to execute effectively, leaving us well positioned for the second half of the year.”

Shareholder Letter

To our shareholders

I am delighted to report a great set of results and meaningful strategic progress during the quarter. We experienced strong year-over-year growth with revenue 16% ahead, adjusted EBITDA 25% higher and cash from operating activities $36m higher than last year’s quarter. Net income, which reduced by 88%, was impacted by increased non-cash charges year-over-year. These included an increase in amortization of acquired intangibles, an increase in income tax expense, and a large swing in the Fox option charge driven by an increase in FanDuel’s valuation.

Before I provide an update on the excellent operational performance across our US and International businesses, there are some key areas of strategic progress I would like to share. Following our move to a US primary listing on the New York Stock Exchange (“NYSE”) in May last year, Flutter has now become a well-established business within US capital markets, demonstrated by our inclusion in two major share indices: CRSP and Russell. Positioning Flutter closer to its primary market in the US was a core objective of our US listing, and the inclusion in these indices demonstrates the clear benefits of this strategy, with the vast majority of our trading volumes now passing through NYSE. We believe we also remain well-placed for admission to other major US indices.

We progressed another key strategic objective in July with the extension of our US market access partnership with Boyd to 2038. This is a great example of our position as an “and” business, able to deploy capital to various uses to drive value creation. In addition to increasing our ownership of FanDuel to 100% at an attractive valuation, this transaction also secures US state market access at much more favorable terms. This supports our conviction that market access efficiency, alongside other cost levers, can help to offset regulatory and tax changes that may affect FanDuel in the future and gives us further confidence in the delivery of our long-term adjusted EBITDA margin targets.

On the US regulatory front, while some state legislative sessions concluded with announced tax increases, I believe our sector is making meaningful progress in encouraging law-makers to adopt a balanced approach. As we have noted in the past, our substantial US scale positions us well to mitigate tax changes and benefit from the market share gains market leaders such as FanDuel have experienced when regulatory changes are introduced. We were, however, disappointed to see the state of Illinois introduce a wager fee on July 1, which we believe unfairly impacts our recreational, lower-handle customers. As previously announced, starting September 1, we will introduce a 50 cent fee on each bet placed in Illinois to help mitigate the significantly higher operating costs in the state. The approach taken by the state of Illinois is very much an outlier when compared with our broad International portfolio, and we believe it risks driving customers to the unregulated market offering limited consumer protections and no state revenue generation. We are confident, as evidenced by the majority approach to date, that law-makers will recognize the importance of adopting a balanced tax strategy which promotes market growth and investment.

The event contracts landscape continues to develop at pace. We have two decades’ experience of operating the world’s largest betting exchange, the Betfair Exchange, which shares similar characteristics with event contracts, and this will help inform our views. We are closely monitoring regulatory developments, and are assessing the opportunities and potential participation strategies this may present for FanDuel.

In our International markets, the completion of the Snai and NSX transactions in the quarter have created a leadership position in Italy for Flutter and established a scale position in the newly regulated Brazilian market. Both acquisitions are driven by a clear strategic rationale to expand our footprint in attractive, regulated markets while leveraging the Flutter Edge to drive operational and product improvements.

In Italy, we are executing on our integration plans and have increasing confidence in our synergy targets. Snai has been consolidated within our SEA region under a well-formed organizational plan. We finished the quarter with 21.7% overall market share, and 30.2% of the online market⁷ in Italy. Looking ahead, our attention is now focused on bringing Snai customers onto SEA’s market leading online platform in the first half of 2026.

Finally, in Brazil, following the combination of NSX and Betfair Brazil, creating Flutter Brazil, our immediate focus has been on resourcing our newest region with the best talent from across Flutter. The Brazilian market remains highly competitive, and we retain a strong conviction that scale operators with the best products will win the largest share of the market. To that extent, our strategy is to elevate our Brazilian proposition, leveraging the Flutter Edge to deliver unit economics we can invest behind and scale meaningfully. We have targeted quick-wins in product and marketing, where immediate improvements have already been made to iGaming content, generosity capabilities and digital marketing effectiveness, while our sports product roadmap will ensure significant improvements are delivered to the customer proposition over the next twelve months.

US update

Turning to our US business, I was really pleased with our performance in Q2. I have previously highlighted that the inherent variability of sports results creates fluctuations around the average in the short-term, but that cumulatively, sports results will align to our expected outcomes over the long-term. Following the last two quarters with very unfavorable sports results in the US, Q2 saw favorable outcomes, with June in particular delivering the highest gross revenue margin month on record of 16.3%. This, alongside very strong iGaming growth, helped deliver total US revenue growth of 17%. We maintained our number one sportsbook position while extending our number one position in iGaming, closing the quarter with sportsbook GGR market share of 41%, a 44% NGR market share and a record 27% iGaming GGR market share⁸.

Our phenomenal iGaming performance is clear evidence of our strategy at work, with Q2 AMP growth of 32% reflecting a consistent product roadmap tailored to casino-first customers, the fastest-growing segment in the market. iGaming customers continued to enjoy the site-wide jackpot functionality introduced in Q1 with over 200k jackpot wins since it was first introduced. We launched our FanDuel Rewards Club to all iGaming customers in April and also added the second installment of our exclusive Huff and Puff series. Leveraging the Flutter Edge via our proprietary iGaming platform, Q2 saw us add a record volume of new titles to the platform. These features resonated with casino-first customers driving increased player volumes and frequency.

In sportsbook, continued product improvements led to an increase in player frequency year-over-year which drove handle 7% higher. AMPs were 4% lower as we lapped our very successful North Carolina launch in the prior year when we drove significant population penetration during the opening months. We were pleased with customer activity during the NBA playoffs, with four separate seven-game series, including the finals, helping to drive better engagement than expected.

From a sportsbook product perspective, we continued to deliver innovative and highly engaging features to our customers during Q2. Harnessing our next generation pricing capability, we added Same Game Parlay+ (“SGP+”) and profit boost functionality to our Your Way feature during the NBA playoffs and have been really pleased with engagement.

Our market-leading SGP offering continues to see excellent customer engagement and underpinned a further structural gross revenue margin expansion of 70bps to 13.6% during the quarter. Building on the success of our Parlay Your Bracket offering during March Madness, we added similar features for both NHL and WNBA during Q2 and we also expanded our SGP live offering to tennis for the first time in the quarter helping to deliver a record Wimbledon for FanDuel. On MLB, our Batter Up feature which allows customers to parlay outcomes for the next three batters up was rolled out for all live games, together with an accompanying Quick Bets page launched in July which has been resonating well.

The strong live betting volumes we delivered during the quarter were supported by our product improvements, with live betting over half our handle in Q2 and SGP live its fastest growing component. A seamless live proposition, with optimized in-game settlement and minimized friction was key to our growth, underpinned by our best-in-class pricing and risk management capabilities.

International update

Our International performance continues to be positive, delivering year-over-year revenue growth of 15%, with the acquisitions of Snai and NSX contributing 11 percentage points of the increase. The organic growth of 4% is particularly pleasing when compared against a strong sportsbook performance in the prior year, which included the Euros and more favorable sports results. iGaming has underscored the organic growth in Q2, with exceptional growth achieved in Turkey and continued excellent momentum in SisaI’s Italian online business and in India. In addition, we delivered impressive double digit growth in UKI despite implementing slots restrictions in line with the UK Gambling Act Review requirements.

We continue to see good product delivery, driven by our focus on the Flutter Edge, which is helping deliver innovation across our business. In July, we launched Flutter’s first bingo network following the successful partnership between Sisal and tombola, which brings the latter’s innovative product and deep liquidity pool to Sisal’s Italian online bingo customers. The launch of MyCombo, our full Same Game Parlay proposition for Sisal Italy ahead of the new soccer season is a market-first and represents a step-change in product differentiation, made possible by our global scale and deep industry expertise.

We are making very good progress against the $300m operational cost saving program previously set out at our Investor Day in 2024. This quarter, we successfully completed the large-scale migration of Sky Bet, moving over nine million customers onto our shared UKI platform. Overall customer reaction to the new offering has been positive and early performance on iGaming has been very strong. Achieving this major milestone means we can now turn our attention to enhancing the core experience for our Sky Bet customers. This will include introducing a host of new exciting features, including a version of our SuperSub offering alongside new products powered by our next-generation pricing capability.

The PokerStars transformation is another significant part of the program, and we delivered our largest milestone to date in July, when PokerStars customers in Italy were migrated onto the shared SEA platform. The majority of the Pokerstars transformation savings will be recognized towards the end of the three year program in 2027, following the final planned migration off the PokerStars technology stack in the second half of 2026.

The migrations of Sky Bet and PokerStars in Italy mark significant progress in our transformation journey, unlocking efficiencies, helping us simplify and shape our organizational structures for the future, providing further scale benefits and positioning us to deliver enhanced experiences for our customers. The strategic cost transformation program is a great example of underlying cost discipline, and we will continue to strive for further optimization and efficiencies in the business.

Final thoughts and outlook

As I reflect on the progress we’ve made so far this year, I am particularly proud that our growth is being achieved in a sustainable way. In May, FanDuel launched an innovative safer gambling tool. The Real-Time Check-In feature uses machine learning to detect risk and generate personalized interventions at the point of play. This industry leading feature builds on work pioneered in our Australian business, and reflects our commitment to leverage data and technology to protect our customers.

Looking ahead to the remainder of the year, our strong performance in the first half of 2025 underlines the strength of Flutter’s fundamentals. I feel confident as I consider our positioning heading into the second half of 2025. Our performance in Q2 positions us well to deliver on our strategic objectives and execute strongly throughout the content rich calendars for NFL, NBA and European soccer during the remainder of the year.

Sincerely,

Peter Jackson
Flutter CEO

Detailed financial review

In $ millions unless stated, unaudited	US			International			Group
Three months ended June 30,	2025	2024	YoY	2025	2024	YoY	2025	2024	YoY
Average monthly players (‘000s)	3,519	3,466	+2%	12,459	10,878	+15%	15,978	14,344	+11%
Handle	11,699	10,976	+7%	7,970	7,422	+7%	19,669	18,398	+7%
Net revenue margin	10.4%	10.0%	+40bps	13.1%	13.4%	(30)bps	11.5%	11.4%	+10bps

Sportsbook revenue	1,219	1,099	+11%	1,041	997	+4%	2,260	2,096	+8%
iGaming revenue	507	357	+42%	1,268	997	+27%	1,775	1,354	+31%
Other revenue	65	71	(8)%	87	90	(3)%	152	161	(6)%
Total revenue	1,791	1,527	+17%	2,396	2,084	+15%	4,187	3,611	+16%

Cost of sales	(968)	(839)	+15%	(1,104)	(894)	+23%
Technology, research and development expenses	(86)	(73)	+18%	(107)	(106)	+1%
Sales and marketing expenses	(219)	(253)	(13)%	(376)	(358)	+5%
General and administrative expenses	(118)	(102)	+16%	(218)	(203)	+7%
Reportable segment adjusted EBITDA	400	260	+54%	591	523	+13%

Unallocated corporate overhead⁹							(72)	(45)	+60%
Group adjusted EBITDA							919	738	+25%
Adjusted EBITDA margin	22.3%	17.0%	+530bps	24.7%	25.1%	(40)bps	21.9%	20.4%	+150bps

Group

The Group delivered a strong second quarter with AMP¹ and revenue growth of 11% and 16% respectively, driven by continued US momentum and a robust underlying performance within International further enhanced by the addition of the Snai and NSX businesses.

Net income of $37m reduced by $260m from $297m in Q2 2024 after including:

(i) a non-cash loss in the fair value of the Fox Option liability of $81m (Q2 2024: $91m gain)

(ii) a non-cash charge for the amortization of acquired intangibles of $209m (Q2 2024: $147m) with the Snai and NSX acquisitions and the cost transformation programs in PokerStars and Sky Bet driving a year-over-year increase

(iii) an income tax charge of $168m (Q2 2024: $53m), with the year-over-year increase primarily driven by the utilization of historic US deferred tax assets in Q2 2024 and an income tax expense related to the Betfair Brazil business reorganization in Q2 2025

(iv) restructuring, integration and transaction costs of $89m (Q2 2024: $38m) with the the year-over-year increase primarily driven by costs incurred in relation to the Snai and NSX acquisitions and subsequent integrations, and the cost transformation programs in PokerStars and Sky Bet

Adjusted EBITDA of $919m grew 25% with adjusted EBITDA margin² 150bps higher principally attributable to the expansion of our US business.

Earnings per share decreased by $0.86 to $0.59 inclusive of the impacts to net income described above, and partially offset by an $80m reduction in redeemable non-controllable interest charge (increasing earnings per share by $0.45) driven by a temporary reduction in the Maxbet redemption value.

Adjusted earnings per share increased by $0.91 to $2.95 driven by the strong adjusted EBITDA growth and the reduction in redeemable non-controlling interest charge.

The Group’s net cash provided by operating activities grew 11% underpinned by the second quarter adjusted EBITDA growth outlined above, partly offset by increased income tax payments. Free cash flow was 9% lower due to an increase in capital expenditure from the Snai acquisition, and technology investment across the Group which continues to pay dividends as we harness the Flutter Edge and continue to innovate at pace.

US Q2 AMPs of 3.5m grew 2% year-over-year as we lapped the benefit of the North Carolina launch in March during the prior year. (Pre-2024 state AMPs +5%, pre-2022 state AMPs +7%). Revenue grew 17% including sportsbook revenue growth of 11% and iGaming revenue growth of 42%.

Sportsbook revenue growth was driven by an increase in player frequency together with improved structural revenue margin as handle grew 7%, with live betting representing over half of handle during the quarter, and net revenue margin increasing by 40 basis points year-over-year to 10.4%.

The increase in net revenue margin included:

Structural revenue margin expansion of 70bps to 13.6% enabled by our market-leading pricing and risk management capabilities delivering continued increased penetration of parlay bets
An adverse sports results impact year-over-year of 30 basis points with the gross revenue impact of sports results in Q2 2025 being less favorable than the prior year (Q2 2025: 80bps favorable, Q2 2024: 110bps favorable). This converted to a small revenue benefit year over year (Q2 2025: $90m, Q2 2024: $80m)
Promotional spend of 4% which was broadly in-line with the prior year

iGaming revenue grew 42% underpinned by AMP growth of 32% and an increase in player frequency year-over-year.

Adjusted EBITDA was $400m (Q2 2024 $260m) with an adjusted EBITDA margin of 22.3%, up 530bps year-over-year supported by continued strong operating leverage across the business.

Cost of sales as a percentage of revenue was 54.0%. Cost of sales in both the current and prior year included the benefit from positive sports results. The year-over-year reduction of 90bps was primarily due to the benefit of payment processing cost initiatives deployed in H2 2024, partly offset by increased taxes in Illinois year-over-year.

Sales and marketing expenses were 13% lower, driven by heightened investment in the North Carolina launch in the prior year and a greater proportion of expenditure for 2025 expected to be incurred during H2 than in the prior year. The 440bps reduction year-over-year as a percentage of revenue to 12.2% also reflected continued good operating leverage in pre-2024 states. Technology, research and development costs were $13m higher year-over-year, primarily as a result of the scaling of data storage and processing costs. General and administrative costs were $16m higher as a result of finance and legal costs, together with the impact of increased headcount in key support functions.

International

International revenue was 15% higher year-over year (up 12% on a constant currency¹⁰ basis, “cc”) with 15% AMP growth. The inclusion of the Snai and NSX acquisitions contributed 11 percentage points of the year-over-year revenue growth.

Sportsbook revenue was 4% higher year-over-year (+2% cc), with the inclusion of Snai and NSX acquisitions contributing 9 percentage points of the year-over-year growth. Sportsbook handle grew 7% year-over-year, with Snai and NSX contributing 9 percentage points of growth. This offset the impact of a strong 2024 comparative period containing the Euros, which accounted for 6% of handle in Q2 2024.

Net revenue margin decreased by 30 basis points year-over-year to 13.1%:

Structural revenue margin of 16.3% was broadly flat year-over-year, as growth driven by our superior pricing capabilities was offset by the impact of faster growth in regions with lower structural revenue margins including SEA, Brazil and CEE
An adverse sports results impact year-over-year of 90 basis points with sports results in Q2 2025 less favorable than the prior year period (Q2 2025: 30bps favorable, Q2 2024 120bps favorable)
A year-over-year reduction in promotional spend of 60 basis points to 3.6% of handle

iGaming revenue was 27% higher year-over-year (+23% cc), with Snai and NSX contributing 13 percentage points of growth. On an organic basis, SEA growth of 24% comprised Sisal Italy online growth of 36% and Turkey growth of 87%. UKI grew 17% (+10% cc) year-over-year, APAC experienced growth of 24% (+27% cc) in India and CEE grew 13% (+10% cc), driven by performance in Georgia.

In $ millions except percentages, unaudited	Three months ended June 30,
International revenue by region	2025	2024	YoY		YoY CC
UK and Ireland	936	928	+1	%	(5	)%
Southern Europe and Africa	657	390	+68	%	+63	%
Asia Pacific	402	385	+4	%	+7	%
Central and Eastern Europe	138	128	+8	%	+5	%
Brazil	44	18	+144	%	+175	%
Other regions	219	235	(7	)%	(9	)%
International total revenue	2,396	2,084	+15	%	+12	%

Revenue performance across our International regions year-over-year was as follows:

UKI revenue grew 1% (-5% cc) with sportsbook revenue down 12% (-17% cc) driven by a 3% reduction in handle (-8% cc) impacted by the Euros which accounted for 10% of overall handle in the prior year, combined with an adverse 190bps swing in sports results. iGaming growth of 17% (+10% cc) was delivered through continued product enhancements and generosity optimization which offset the impact of the Gambling Act Review-led player restrictions implemented during the quarter
SEA revenue grew 68% (+63% cc) with the inclusion of Snai contributing 52 percentage points of the growth. Sportsbook revenue was up 64% (+57% cc) including Snai which contributed 61 percentage points of the growth. Organic sportsbook revenue growth was impacted by the Euros which accounted for 8% of handle in Q2 2024, and an adverse swing in sports results of 100bps which offset continued structural gross revenue margin expansion. iGaming revenue grew 70% (+67% cc) with Snai contributing 46 percentage points of growth. SEA Italian revenue¹¹ grew 67%, with Snai contributing 59 percentage points of growth (sportsbook was up 65% with Snai contributing 62 percentage points of growth and iGaming was up 67% with Snai contributing 55 percentage points of growth). Turkey growth was also strong with revenue growing 87% (+124% cc). This growth was attributable to strong AMP growth, improved online penetration and an expansion in the products offered within the market
APAC revenue grew 4% (+7% cc) with sportsbook growth in Australia of 3% (+6% cc) where a handle reduction of 6% (-3% in cc) was more than offset by the benefits of optimized generosity and favorable sports results year-over-year. iGaming growth in India of 24% (+27% cc) was driven by 15% growth in AMPs and improved monetization through pricing and generosity optimizations
CEE revenue grew by 8% (+5% cc) with iGaming growth of 13% (+10% cc). This was largely driven by iGaming revenue growth of 26% year-over-year in Georgia, which offset a sportsbook revenue reduction of 15% (-19% cc) primarily attributable to the Euros which accounted for 14% of handle in 2024
Brazil revenue grew by 144% (+175% cc), benefiting from the acquisition of NSX which contributed 185 percentage points of growth. Betfair Brazil revenue declined year-over-year driven by adverse sports results in the quarter and the continuing impact of the customer re-registration friction post regulation.
Other regions revenue was 7% lower (-9% cc) due to the impact of some smaller market exits and regulatory change

Adjusted EBITDA increased by 13% year-over-year (+10% cc) with the acquisition of Snai and NSX contributing 7 percentage points of growth year-over-year. Adjusted EBITDA margin, before including Snai and NSX, expanded by 70 basis points to 25.9%. Inclusive of Snai and NSX, adjusted EBITDA margin for the quarter was 24.7%, a 40 basis point reduction, reflective of our investment phase in Brazil.

Cost of sales as a percentage of revenue increased by 320 basis points to 46.1%, with the acquisition of Snai and NSX contributing 170 basis points of the year-over-year increase. The remaining 150 basis point organic increase was due to increased taxes in CEE and in Betfair Brazil, along with a continued shift in revenue mix in favor of iGaming which generally incurs higher third party costs than sportsbook.

Sales and marketing expenses increased by $18m or 5% year-over-year with the acquisition of Snai and NSX contributing $37m or 10 percentage points of the increase. As a percentage of revenue, sales and marketing reduced by 150 basis points to 15.7%, with savings from Euros-related marketing spend in Q2 2024 more than offsetting increased investment in Italy to support conversion of our retail customer base to online, and our growth plans in Turkey and Brazil.

Technology, research and development costs were $1m or 1% higher year-over-year with the acquisition of Snai and NSX contributing $5m or 5 percentage points of the increase. General and administrative costs were $15m or 7% higher with the inclusion of Snai and NSX contributing $14m or 7 percentage points of the increase. Operating leverage has been achieved across both technology, research and development costs, and general and administrative costs, with improvements of 60bps to each, bringing them to 4.5% and 9.1% of revenue for the quarter, respectively.

Unallocated corporate overhead⁹ increased by $27m or 60% year-over-year. This was driven by a $14m charge related to foreign exchange movements, primarily due to a non-cash revaluation of related monetary items on the Group balance sheet. The remaining increase is broadly split across inflationary pay increases, investment in Flutter Edge initiatives primarily Flutter Studios and shared technology.

Capital structure

Available cash increased $154m quarter-on-quarter, closing at approximately $1.7bn. The $3,216m increase in total debt to $9,952m at June 30, 2025 from $6,736m at December 31, 2024 reflects the financing for the Snai and NSX acquisitions. Net debt was $8,522m at the end of Q2 2025, with a leverage ratio² of 3.2x at June 30, 2025 (2.2x at December 31, 2024). The leverage ratio² was 3.0x based on the last 12 months adjusted EBITDA including Snai.

The purchase of Boyd’s 5% interest in FanDuel for $1.76bn¹² was completed on July 31, 2025 and financed by extending the existing Term Loan B and Euro, Sterling and Dollar Senior Notes at attractive terms. We therefore expect our leverage to increase in the near term but then reduce rapidly given the highly visible and profitable growth opportunities that exist across the Group. We remain committed to our medium-term leverage ratio target of 2.0-2.5x.

The share repurchase program, continued in Q2 2025 with 1.25 million shares repurchased in the quarter for a consideration of $300m excluding excise duties ($296m was paid for the program in the quarter). We are highly disciplined allocators of capital and we expect to return up to $1bn of cash to shareholders through the program during 2025, and up to $5bn of cash to shareholders over a three to four year period, whilst also maintaining the flexibility to invest significant amounts of capital both organically and inorganically. The Boyd deal is a great example of both this flexible approach and the value we believe we can create.

Guidance

Full year 2025 guidance is now increased for the following adjustments (i) the impact of US sports results, (ii) the impact of US tax changes, (iii) renegotiated US market access savings, and (iv) the impact of new state timings.

The changes to the midpoints of our previous guidance are summarized in the table below:

	US		International		Corporate	Group
($ in millions)	Revenue	Adjusted EBITDA	Revenue	Adjusted EBITDA	Adjusted EBITDA	Revenue	Adjusted EBITDA
US existing states	7,440	1,220
US new states	(40)	(90)
Previous Guidance	7,400	1,130	9,680	2,300	(250)	17,080	3,180

US sports results (May-Jun)⁶	140	100				140	100
Boyd market access	0	35				0	35
NJ, IL and LA tax impacts	30	(40)				30	(40)
New state timing	10	20				10	20
Change	180	115	0	0	0	180	115

Revised Guidance⁴	7,580	1,245	9,680	2,300	(250)	17,260	3,295
US existing states	7,610	1,315
US new states	(30)	(70)

Our updated outlook for 2025 now includes the following midpoints:

Group: revenue and adjusted EBITDA of $17.26bn and $3.295bn representing 23% and 40% year-over-year growth, respectively.

US: revenue and adjusted EBITDA of $7.58bn and $1.245bn, representing year-over-year growth of 31% and 146%, respectively. We expect revenue of approximately $2.6bn and approximately $580m of adjusted EBITDA to arise in Q4.

This comprises increased guidance for both existing and new states as follows:

Existing states

Revenue of $7.61bn and adjusted EBITDA of $1.315bn, with year-over-year growth of 31% and 159%, respectively
Increased from previous guidance primarily due to the benefit of May and June sports results of $140m revenue, $100m adjusted EBITDA
H2 2025 gaming tax costs include the previously announced changes in Illinois, New Jersey and Louisiana net of anticipated direct mitigation
- Illinois transaction fee: net cost of $5m with gross cost of $35m mitigated by $30m in other revenue from the proposed FanDuel transaction fee
- New Jersey and Louisiana: net cost of $35m with gross cost of $45m and approximately 20% mitigation through locally optimized promotional and marketing spend
- Maryland gross cost of $10m was already included within our guidance set out in May and therefore does not represent a change to that previous guidance
The benefit of Boyd market access savings of $35m are therefore expected to almost entirely mitigate the net impact of incremental gaming tax costs of $40m above in H2

New states

Now expect negative revenue of $30m and adjusted EBITDA cost of $70m due to slightly later launch timings versus previous expectations (previous guidance -$40m revenue and -$90m adjusted EBITDA)

International: Foreign currency changes since our previous guidance are not material and therefore revenue and adjusted EBITDA guidance of $9.68bn and $2.30bn is re-affirmed, representing year-over-year growth of 17% and 11% respectively.

Unallocated corporate overhead: cost guidance of $250m is unchanged.

Other items: also remain unchanged, with the exception of Interest expense, which now includes the financing costs associated with the Boyd transaction.

	Updated 2025 guidance			Previous guidance
	Low	Midpoint	High	Midpoint
Group revenue	$16.81bn	$17.26bn	$17.71bn	$17.08bn
Group adjusted EBITDA	$3.075bn	$3.295bn	$3.515bn	$3.18bn

US existing state⁴ revenue	$7.36bn	$7.61bn	$7.86bn	$7.44bn
US existing state adjusted EBITDA	$1.195bn	$1.315bn	$1.435bn	$1.220bn
US new states revenue cost	Approximately ($30m)			($40m)
US new states adjusted EBITDA	Approximately ($70m)			($90m)
US total revenue	$7.33bn	$7.58bn	$7.83bn	$7.40bn
US total adjusted EBITDA	$1.125bn	$1.245bn	$1.365bn	$1.13bn

International revenue	$9.48bn	$9.68bn	$9.88bn	$9.68bn
International adjusted EBITDA	$2.20bn	$2.30bn	$2.40bn	$2.30bn

Unallocated corporate overhead	Approximately $250m			$250m
Interest expense, net	$525m	$535m	$545m	$490m
Depreciation and amortization excl. acquired intangibles	Approximately $670m			$670m
Capital expenditure¹²	Approximately $820m			$820m
Share repurchases	Up to $1bn			Up to $1bn

Guidance is provided (i) on the basis that sports results are in line with our expected margin for the remainder of the year, (ii) at stated foreign exchange rates¹³ and (iii) on the basis of a consistent regulatory and tax framework except where otherwise stated.

A reconciliation of our forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared of items that have not yet occurred, are out of our control, or cannot be reasonably predicted.

This announcement contains inside information as defined under assimilated Regulation (EU) No. 596/2014, which is part of the laws of the United Kingdom by virtue of the European Union (Withdrawal) Act 2018 (as amended). The person responsible for arranging release of this information on behalf of Flutter is Edward Traynor, Company Secretary of Flutter.

Conference call:

Flutter management will host a conference call today at 4:30 p.m. ET (9:30 p.m. BST) to review the results and be available for questions, with access via webcast and telephone.

A public audio webcast of management’s call and the related Q&A can be accessed by registering via www.flutter.com/investors. For those unable to listen to the live broadcast, a replay will be available approximately one hour after the conclusion of the call. This earnings release and supplementary materials will also be made available via www.flutter.com/investors.

Analysts and investors who wish to participate in the live conference call must do so by dialing any of the numbers below and using conference ID 20251. Please dial in 10 minutes before the conference call begins.

+1 888 500 3691 (North America)

+44 800 358 0970 (United Kingdom)

+353 1800 943926 (Ireland)

+61 1800 519 630 (Australia)

+1 646 307 1951 (International)

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited, to statements related to our expectations regarding the performance of our business, our financial results, our operations, our liquidity and capital resources, the conditions in our industry and our growth strategy. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believe(s),” ”expect(s),” “potential,” “continue(s),” “may,” “will,” “should,” “could,” “would,” “seek(s),” “predict(s),” “intend(s),” “trends,” “plan(s),” “estimate(s),” “anticipates,” “projection,” “goal,” “target,” “aspire,” “will likely result,” and or the negative version of these words or other comparable words of a future or forward looking nature. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Such factors include, among others: Flutter’s ability to effectively compete in the global entertainment and gaming industries; Flutter’s ability to retain existing customers and to successfully acquire new customers; Adverse changes to the regulation (including taxation) of online betting and iGaming; Flutter’s ability to accurately determine the odds in relation to any particular event exposes us to trading, liability management and pricing risk; Flutter’s ability to develop new product offerings; Flutter’s ability to successfully acquire and integrate new businesses; Flutter’s ability to maintain relationships with third-parties; Flutter’s ability to maintain its reputation; Public sentiment towards online betting and iGaming generally; The potential impact of general economic conditions, including inflation, tariffs and/or trade disputes, fluctuating interest rates and instability in the banking system, on Flutter’s liquidity, operations and personnel; Flutter’s ability to obtain and maintain licenses with gaming authorities; The failure of additional jurisdictions to legalize and regulate online betting and iGaming; Flutter’s ability to comply with complex, varied and evolving U.S. and international laws and regulations relating to its business; Flutter’s ability to raise financing in the future; Flutter’s success in retaining or recruiting officers, key employees or directors; Litigation and the ability to adequately protect Flutter’s intellectual property rights; The impact of data security breaches or cyber-attacks on Flutter’s systems; and Flutter’s ability to remediate material weaknesses in its internal control over financial reporting.

Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements can be found in Part I, “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission (the “SEC”) on March 4, 2025 and other periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Company’s filings with the SEC. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Flutter Entertainment plc

Flutter is the world’s leading online sports betting and iGaming operator, with a market leading position in the US and across the world. Our ambition is to leverage our size and our challenger mindset to change our industry for the better. By Changing the Game, we believe we can deliver long-term growth while promoting a positive, sustainable future for all our stakeholders. We are well-placed to do so through the distinctive, global advantages of the Flutter Edge, which gives our brands access to group-wide benefits, as well as our clear vision for sustainability through our Positive Impact Plan.

Flutter operates a diverse portfolio of leading online sports betting and iGaming brands including FanDuel, Sky Betting & Gaming, Sportsbet, PokerStars, Paddy Power, Sisal, Snai, tombola, Betfair, MaxBet, Junglee Games, Adjarabet and Betnacional. We are the industry leader with $14,048m of revenue globally for fiscal 2024, up 19% YoY, and $4,187m of revenue globally for the quarter ended June 30, 2025.

Contacts:

Investor Relations:	Media Relations:
Paul Tymms, Investor Relations	Kate Delahunty, Corporate Communications
Ciara O’Mullane, Investor Relations	Lindsay Dunford, Corporate Communications
Chris Hancox, Investor Relations	Rob Allen, Corporate Communications
Email: [email protected]	Email: [email protected]

Notes

1	Average Monthly Players (“AMPs”) is defined as the average over the applicable reporting period of the total number of players who have placed and/or wagered a stake and/or contributed to rake or tournament fees during the month. This measure does not include individuals who have only used new player or player retention incentives, and this measure is for online players only and excludes retail player activity. In circumstances where a player uses multiple product categories within one brand, we are generally able to identify that it is the same player who is using multiple product categories and therefore count this player as only one AMP at the Group level while also counting this player as one AMP for each separate product category that the player is using. As a result, the sum of the AMPs presented at the product category level is greater than the total AMPs presented at the Group level. See Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Key Operational Metrics” of Flutter’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 4, 2025 for additional information regarding how we calculate AMPs data, including a discussion regarding duplication of players that exists in such data.
2	Adjusted EBITDA, adjusted EBITDA margin, last twelve months adjusted EBITDA including Snai, Free Cash Flow, net debt, leverage ratio, leverage ratio including Snai, constant currency, adjusted net income attributable to Flutter shareholders and adjusted earnings per share are non-GAAP financial measures. See “Definitions of non-GAAP financial measures” and “Reconciliations of Non-GAAP Financial Measures” sections of this announcement for definitions of these measures and reconciliations to the most directly comparable financial measures calculated in accordance with GAAP. Due to rounding, these numbers may not add up precisely to the totals provided.
3	Fox has an option to acquire an 18.6% equity interest in FanDuel (the Fox Option). Gains or losses in the fair value of the Fox Option primarily due to changes in the fair value of FanDuel during the reporting period are recorded in Other income (expense), net. See Part II, “Item 8. Financial Statements and Supplementary Data—Fair Value Measurements” of Flutter’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 4, 2025 for additional information regarding the Fox Option.
4	US analysis by state cohort includes the states and provinces by FanDuel launch date. Pre-2024, states include: New Jersey, Pennsylvania, West Virginia, Indiana, Colorado, Illinois, Iowa, Michigan, Tennessee, Virginia, Arizona, Connecticut, New York, Ontario, Louisiana, Wyoming, Kansas, Maryland, Ohio, Massachusetts, Kentucky.
5	A reconciliation of our forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure cannot be provided without unreasonable effort. This is due to the inherent difficulty of accurately forecasting the occurrence and financial impact of the adjusting items necessary for such a reconciliation to be prepared of items that have not yet occurred, are out of our control, or cannot be reasonably predicted.
6	Q1 impact: revenue $230m unfavorable, adjusted EBITDA $150m unfavorable, Q2 impact: revenue $90m favorable, adjusted EBITDA $70m favorable (April impact $50m revenue unfavorable, $30m adjusted EBITDA unfavorable. May/June impact: revenue $140m favorable, adjusted EBITDA $100m favorable). Impact of sports results year to date to the end of June: revenue $140m unfavorable and adjusted EBITDA $80m unfavorable. Impacts include an estimate for the benefit of recycling.
7	Italian market position and share based on regulator GGR data from Agenzia delle dogane e dei Monopoli.
8	US market position based on available market share data for states in which FanDuel is active. Online sportsbook market share is the gross gaming revenue (GGR) and net gaming revenue (NGR) market share of our FanDuel brand for the three months to June 30, 2025 in the states in which FanDuel was live (excluding Tennessee as they no longer report this data), based on published gaming regulator reports in those states. iGaming market share is the GGR market share of FanDuel for the three months to June 30, 2025 in the states in which FanDuel was live, based on published gaming regulator reports in those states. US iGaming GGR market share including PokerStars US (which is reported in the International segment) for the three months to June 30, 2025 was 28%.
9	Unallocated corporate overhead includes shared technology, research and development, sales and marketing, and general and administrative expenses that are not allocated to a specific segment.
10	Constant currency growth rates are calculated by retranslating the non-US dollar denominated component of Q2 2024 at Q2 2025 exchange rates. See reconciliation below.
11	In addition to Q2 Italian revenue reported within SEA, there was also Italian revenue in the quarter generated across tombola (reported in UKI) and Betfair (reported in Other regions).
12	Consideration comprises approximately $1.56bn attributable to the acquisition of Boyd’s 5% stake in FanDuel and approximately $0.2bn attributable to the revision of various existing commercial terms. The amount of $0.2bn will be reflected as a cash outflow within net cash provided by operating activities during Q3 2025
13	Capital expenditure is defined as payments for the purchase of property and equipment, the purchase of intangible assets and capitalized software.
14	The impact of changes in foreign exchange rates versus those used in the guidance issued on May 7, 2025 is not significant with movements in EUR and GBP offsetting at an International segment adjusted EBITDA level. Therefore, foreign exchange rates assumed for 2025 guidance remain unchanged versus those used for guidance issued on May 7, 2025 of USD:GBP of 0.746, USD:EUR of 0.878 and USD:AUD of 1.563.

Definitions of non-GAAP financial measures

This press release includes Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income Attributable to Flutter Shareholders, Adjusted Earnings Per Share (“Adjusted EPS”), leverage ratio, leverage ratio including Snai, Net Debt, Free Cash Flow, and constant currency 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 investors as measures of performance. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income Attributable to Flutter Shareholders, Adjusted EPS, leverage ratio, Net Debt, Free Cash Flow, and Adjusted Depreciation 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.

Constant currency reflects certain operating results on a constant-currency basis in order to facilitate period-to-period comparisons of our results without regard to the impact of fluctuating foreign currency exchange rates. The term foreign currency exchange rates refer to the exchange rates used to translate our operating results for all countries where the functional currency is not the U.S. Dollar, into U.S. Dollars. Because we are a global company, foreign currency exchange rates used for translation may have a significant effect on our reported results. In general, our financial results are affected positively by a weaker U.S. Dollar and are affected negatively by a stronger U.S. Dollar. References to operating results on a constant-currency basis mean operating results without the impact of foreign currency exchange rate fluctuations. We believe the disclosure of constant-currency results is helpful to investors because it facilitates period-to-period comparisons of our results by increasing the transparency of our underlying performance by excluding the impact of fluctuating foreign currency exchange rates. We calculate constant currency revenue, Adjusted EBITDA and Segment Adjusted EBITDA by translating prior-period revenue, Adjusted EBITDA and Segment Adjusted EBITDA, as applicable, using the average exchange rates from the current period rather than the actual average exchange rates in effect in the prior period.

Last twelve months (“LTM”) net income is defined on a Group basis as net income for the year ended December 31, 2024, minus net income for six months ended June 30, 2024 and plus net income for six months ended June 30, 2025.

LTM net income including Snai is defined on a Group basis as LTM net income plus Snai’s net income for the ten months ended April 30, 2025 prior to the completion of acquisition. Snai’s historical condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”). We have made adjustments to conform Snai’s financial information prepared under IFRS to U.S. GAAP.

LTM adjusted net income including Snai is defined on a Group basis as LTM adjusted net income, after adjusting for the following:

•	Transaction fees and associated costs and restructuring and integration costs related to the acquisition assumed to have incurred prior to or soon after the acquisition date of January 1, 2024, and therefore are reversed from the twelve months result ended June 30, 2025.
•	New debt financing required to complete the acquisition of Snai is assumed to have occurred on January 1, 2024. The additional interest expense recognized is calculated, together with the associated hedge impact and the amortization of related debts issuance costs. For the new debt at floating rate, we have assumed the actual 3 months SOFR rates for Q2 2025 was constant from July 2024 to April 2025.
•	Intangible assets are assumed to be recorded at their estimated fair value as of January 1, 2024, and are amortized over their estimated useful lives from that date along with the consequent deferred tax benefit. The amortization expense relating to the historical fair value uplift on Snai’s intangible assets acquired by Playtech in 2018, together with the deferred tax benefit are reversed.

Adjusted EBITDA is defined on a Group basis as net income (loss) before income taxes; other income, net; interest expense, net; depreciation and amortization; transaction fees and associated costs; restructuring and integration costs; impairment of PPE and intangible assets and share based compensation expense.

LTM adjusted EBITDA including Snai is defined on a Group basis as LTM adjusted net income including Snai before income taxes; other expense, net; interest expense, net; depreciation and amortization; share-based compensation expense; transaction fees and associated costs; and restructuring and integration costs.

Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue, respectively.

Adjusted Net Income Attributable to Flutter Shareholders is defined as net income (loss) as adjusted for after-tax effects of transaction fees and associated costs; restructuring and integration costs; gaming taxes dispute, amortization of acquired intangibles, accelerated amortization, loss (gain) on settlement of long-term debt; impairment of PPE and intangible assets; financing related fees not eligible for capitalization; gain from disposal of businesses, fair value (gain)/loss on derivative instruments, fair value (gain)/loss on contingent consideration, fair value (gain)/loss on Fox Option Liability and fair value (gain)/loss on investment, 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.

Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted net income attributable to Flutter shareholders and 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 income (loss) measures or earnings per share, or as alternatives to net cash provided by (used in) 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.

Adjusted EBITDA has further limitations as an analytical tool. Some of these limitations are:

•	it does not reflect the Group’s cash expenditures or future requirements for capital expenditure or contractual commitments;
•	it does not reflect changes in, or cash requirements for, the Group’s working capital needs;
•	it does not reflect interest expense, or the cash requirements necessary to service interest or principal payments, on the Group’s debt;
•	it does not reflect share-based compensation expense which is primarily a non-cash charge that is part of our employee compensation;
•	although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for such replacements;
•	it is not adjusted for all non-cash income or expense items that are reflected in the Group’s statements of cash flows; and
•	the further adjustments made in calculating Adjusted EBITDA are those that management consider not to be representative of the underlying operations of the Group and therefore are subjective in nature.

Net debt is defined as total debt, excluding premiums, discounts, and deferred financing expense, 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.

Leverage ratio is defined as net debt divided by last twelve months Adjusted EBITDA. We use this non-GAAP financial measure to evaluate our financial leverage. We present net debt to Adjusted EBITDA because we believe it is more representative of our financial position as it is reflective of our ability to cover our net debt obligations with results from our core operations, and is an indicator of our ability to obtain additional capital resources for our future cash needs. 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. The Leverage Ratio is not a substitute for, and should be used in conjunction with, GAAP financial ratios. Other companies may calculate leverage ratios differently.

Leverage ratio including Snai is defined as net debt divided by LTM adjusted EBITDA including Snai.

Free Cash Flow is defined as net cash provided by (used in) operating activities less payments for property and equipment, intangible assets and capitalized software. We believe that excluding these items from free cash flow better portrays our ability to generate cash, as such items are not indicative of our operating performance for the period. This non-GAAP measure 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. 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 Free Cash Flow may differ from similarly titled measures used by other companies, limiting their usefulness as a comparative measure.

Adjusted depreciation is defined as depreciation and amortization excluding amortization of acquired intangibles.

Condensed Consolidated Balance Sheets

($ in millions except share and per share amounts)	As of June 30,	As of December 31,
($ in millions except share and per share amounts)	2025	2024
Current assets:
Cash and cash equivalents	1,691	1,531
Cash and cash equivalents – restricted	79	48
Player deposits – cash and cash equivalents	1,745	1,930
Player deposits – investments	30	130
Accounts receivable, net	161	98
Prepaid expenses and other current assets	665	607
Asset held for sale	23	—
Total current assets	4,394	4,344
Investments	7	6
Property and equipment, net	602	493
Operating lease right-of-use assets	562	507
Intangible assets, net	7,545	5,364
Goodwill	16,487	13,352
Deferred tax assets	182	267
Other non-current assets	95	175
Total assets	29,874	24,508
Liabilities, redeemable non-controlling interests and shareholders’ equity
Current liabilities:
Accounts payable	350	266
Player deposit liability	1,712	1,940
Operating lease liabilities	122	119
Long-term debt due within one year	70	53
Other current liabilities	2,371	2,212
Liability held for sale	1	—
Total current liabilities	4,626	4,590
Operating lease liabilities – non-current	486	428
Long-term debt	9,882	6,683
Deferred tax liabilities	1,093	605
Other non-current liabilities	1,145	935
Total liabilities	17,232	13,241
Commitments and contingencies
Redeemable non-controlling interests	2,236	1,808
Shareholders’ equity
Ordinary share (Authorized 3,000,000,000 shares of €0.09 ($0.11) par value each; issued June 30, 2025: 176,370,705 shares; December 31, 2024: 177,895,367 shares)	36	36
Additional paid-in capital	1,810	1,611
Accumulated other comprehensive loss	(880)	(1,927)
Retained earnings	9,249	9,573
Total Flutter Shareholders’ Equity	10,215	9,293
Non-controlling interests	191	166
Total shareholders’ equity	10,406	9,459
Total liabilities, redeemable non-controlling interests and shareholders’ equity	29,874	24,508

Condensed Consolidated Statements of Comprehensive Income (Loss)

($ in millions except share and per share amounts)	Three months ended June 30,
	2025	2024
Revenue	4,187	3,611
Cost of sales	(2,228)	(1,835)
Gross profit	1,959	1,776
Technology, research and development expenses	(256)	(216)
Sales and marketing expenses	(789)	(746)
General and administrative expenses	(525)	(445)
Operating profit	389	369
Other (expense) income, net	(74)	89
Interest expense, net	(110)	(108)
Income before income taxes	205	350
Income tax expense	(168)	(53)
Net income	37	297
Net income attributable to non-controlling interests and redeemable non-controlling interests	12	18
Adjustment of redeemable non-controlling interest to redemption value	(80)	18
Net income attributable to Flutter shareholders	105	261
Earnings per share
Basic	0.59	1.47
Diluted	0.59	1.45
Other comprehensive income (loss), net of tax:
Effective portion of changes in fair value of cash flow hedges	(67)	(10)
Fair value of cash flow hedges transferred to the income statement	65	12
Changes in excluded components of fair value hedge	(1)	—
Foreign exchange (loss) gain on net investment hedges	(30)	50
Foreign exchange gain (loss) on translation of the net assets of foreign currency denominated entities	778	(60)
Fair value movements on available for sale debt instruments	—	1
Other comprehensive income (loss)	745	(7)
Other comprehensive income (loss) attributable to Flutter shareholders	711	(3)
Other comprehensive income (loss) attributable to non-controlling interest and redeemable non-controlling interest	34	(4)
Total comprehensive income	782	290

Condensed Consolidated Statements of Cash Flows¹

	Three months ended June 30,
($ in millions)	2025	2024
Cash flows from operating activities
Net income	37	297
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization	369	272
Change in fair value of derivatives	—	(7)
Non-cash interest expense, net	2	17
Non-cash operating lease expense	28	33
Unrealized foreign currency exchange (gain) loss, net	(25)	2
Loss (gain) on disposals	3	(1)
Share-based compensation – equity classified	70	57
Share-based compensation – liability classified	2	2
Other expense (income), net	81	(91)
Deferred tax benefit	(17)	(35)
Loss on extinguishment	14	5
Change in contingent consideration	—	(3)
Change in operating assets and liabilities:
Player deposits	104	(2)
Accounts receivable	37	(3)
Prepaid expenses and other current assets	58	19
Accounts payable	(90)	(28)
Other liabilities	(53)	(115)
Player deposit liability	(235)	(59)
Operating leases liabilities	(26)	(37)
Net cash provided by operating activities	359	323
Cash flows from investing activities:
Purchases of property and equipment	(37)	(28)
Purchases of intangible assets	(9)	(40)
Capitalized software	(157)	(84)
Acquisitions, net of cash acquired	(2,688)	(25)
Cash settlement of derivatives designated in net investment hedge	17	—
Other advances	9	—
Net cash used in investing activities	(2,865)	(177)
Cash flows from financing activities:
Proceeds from issue of ordinary share upon exercise of options	3	7
Proceeds from issuance of long-term debt (net of transactions costs)	6,004	1,045
Repayment of long-term debt	(3,130)	(1,095)
Distributions to non-controlling interests	(5)	(6)
Payment of contingent consideration	—	—
Repurchase of ordinary shares and taxes withheld and paid on employee share awards	(339)	—
Net cash provided by (used in) financing activities	2,533	(49)

Net increase in cash, cash equivalents and restricted cash	27	97
Cash, cash equivalents and restricted cash – Beginning of the period	3,393	3,157
Foreign currency exchange gain (loss) on cash and cash equivalents	95	(19)
Cash, cash equivalents and restricted cash – End of the period	3,515	3,235

Cash, cash equivalents and restricted cash comprise of:
Cash and cash equivalents	1,691	1,526
Cash and cash equivalents – restricted	79	25
Player deposits – cash & cash equivalents	1,745	1,684
Cash, cash equivalents and restricted cash – End of the period	3,515	3,235

Supplemental disclosures of cash flow information:
Interest paid	126	108
Income tax paid (net of refunds)	231	86
Operating cash flows from operating leases	44	43

Non-cash investing and financing activities:
Purchase of intangible assets with accrued expense²	77	—
Capitalized software with accrued expense²	8	—
Purchase of property and equipment with accrued expense²	8	—
Right of use assets obtained in exchange for new operating lease liabilities	9	54
Adjustments to lease balances as a result of remeasurement	1	(1)
Business acquisitions (including contingent consideration)	331	2
Repurchase of ordinary shares with accrued expense²	11	—
Non-cash issuance of common stock upon exercise of options²	29	—
Non-cash transaction costs on issuance of long-term debt²	17	—

1.	The Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 2025 is derived by subtracting the cash flows from the three months ended March 31, 2025 from the cash flows for the six months ended June 30, 2025. As such it does not reflect the settlement of pre-existing relationships for which Flutter has recognized an asset.
2.	Figures represent the closing position at the end of the reporting period and not the movement during the period

Reconciliations of non-GAAP financial measures

Adjusted EBITDA reconciliation

See below a reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to net income, the most comparable GAAP measure.

	Three months ended June 30,
($ in millions)	2025	2024
Net income	37	297
Add back:
Income taxes	168	53
Other income (expense), net	74	(89)
Interest expense, net	110	108
Depreciation and amortization	369	272
Share-based compensation expense	72	59
Transaction fees and associated costs ¹	19	16
Restructuring and integration costs ²	70	22
Group Adjusted EBITDA	919	738

Group Revenue	4,187	3,611
*Group Adjusted EBITDA Margin*	*21.9*%	*20.4*%

Fees primarily associated with (i) 2025 transaction costs related to Snaitech and NSX acquisitions; and (ii) 2024 advisory fees related to implementation of internal controls, information system changes and other strategic advisory related to the change in the primary listing of the Group.

Costs primarily relate to various restructuring and other strategic initiatives to drive synergies. The programs are expected to run until 2027. These actions include efforts to consolidate and integrate our technology infrastructure, back-office functions and relocate certain operations to lower cost locations. It also includes business process re-engineering cost, planning and design of target operating models for the Group’s enabling functions and discovery and planning related to the Group’s anticipated migration to a new enterprise resource planning system. The costs primarily include severance expenses, advisory fees and temporary staffing costs.

Adjusted net income attributable to Flutter shareholders

See below a reconciliation of Adjusted net income attributable to Flutter shareholders to net income/ (loss), the most comparable GAAP measure.

	Three months ended June 30,
($ in millions)	2025	2024
Net income	37	297
Less:
Transaction fees and associated costs	19	16
Restructuring and integration costs	70	22
Amortization of acquired intangibles	209	147
Share-based compensation	72	59
Loss on settlement of long-term debt	14	5
Financing related fees not eligible for capitalization	1	—
Fair value (gain) / loss on derivative instruments	—	(7)
Fair value (gain) / loss on contingent consideration	—	(3)
Fair value (gain) / loss on Fox Option Liability	81	(91)
Fair value (gain) / loss on Investment	—	—
Tax impact of above adjustments¹	(45)	(42)
Adjusted net income	458	403
Less:
Net income attributable to non-controlling interests and redeemable non-controlling interests²	12	18
Adjustment of redeemable non-controlling interest³	(80)	18
Adjusted net income attributable to Flutter shareholders	526	367
Weighted average number of shares	179	180

1.	Tax rates used in calculated adjusted net income attributable to Flutter shareholders is the statutory tax rate applicable to the geographies in which the adjustments were incurred.
2.	Represents net loss attributed to the non-controlling interest in Sisal and the redeemable non-controlling interest in FanDuel, MaxBet, Junglee and NSX.
3.	Represents the adjustment made to the carrying value of the redeemable non-controlling interests in Junglee and MaxBet 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.

Adjusted earnings per share reconciliation

See below a reconciliation of adjusted earnings per share to diluted earnings per share, the most comparable GAAP measure.

	Three months ended June 30,
$	2025	2024
Earnings per share to Flutter shareholders	0.59	1.45
Add/ (Less):
Transaction fees and associated costs	0.11	0.09
Restructuring and integration costs	0.39	0.12
Amortization of acquired intangibles	1.17	0.82
Share-based compensation	0.40	0.33
Loss on settlement of long-term debt	0.08	0.03
Financing related fees not eligible for capitalization	0.01	—
Fair value (gain) / loss on derivative instruments	—	(0.04)
Fair value (gain) / loss on contingent consideration	—	(0.02)
Fair value (gain) / loss on Fox Option Liability	0.45	(0.51)
Fair value (gain) / loss on Investment	—	—
Tax impact of above adjustments	(0.25)	(0.23)
Adjusted earnings per share	2.95	2.04

Last twelve months adjusted EBITDA

See below a reconciliation of LTM adjusted EBITDA to net income for the year ended December 31, 2024.

($ in millions) Unaudited	Year ended December 31, 2024	Six months ended June 30, 2024	Six months ended June 30, 2025	Twelve months ended June 30, 2025
Net income	162	120	372	414
Add back:
Income taxes	(146)	68	187	(27)
Other expense (income), net	434	85	(142)	207
Interest expense, net	419	220	195	394
Depreciation and amortization	1,097	569	663	1,191
Share-based compensation expense	202	100	129	231
Transaction fees and associated costs	54	45	20	29
Restructuring and integration costs	135	45	111	201
LTM adjusted EBITDA	2,357	1,252	1,535	2,640
Net debt				8,522
Leverage ratio				3.2x

See below a reconciliation of LTM adjusted EBITDA including Snai to net income for the year ended December 31, 2024. These figures have been adjusted to include the relevant amounts for Snai during the pre-acquisition period as though it formed part of the Group since July 1, 2024.

($ in millions) Unaudited	Twelve months ended June 30, 2025
Net income for Fiscal 2024	162
Less: Net income for six months ended June 30, 2024	(120)
Add: Net income for six months ended June 30, 2025	372
LTM net income	414
Snai’s net income for the ten months ended April 30, 2025	73
LTM net income including Snai	487

Transaction costs	(17)
Interest expense	(137)
Additional amortization expense (net of deferred tax impact)	(64)
Reversal of previous PPA amortization expense (net of deferred tax impact)	12
LTM adjusted net income including Snai	281

Add:
Income taxes	8
Other expense, net	210
Interest expense, net	526
Depreciation and amortization	1,319
Share-based compensation expense	275
Transaction fees and associated costs	52
Restructuring and integration costs	201
LTM adjusted EBITDA including Snai	2,872
Net debt	8,522
Leverage ratio including Snai	3.0x

Net debt reconciliation

See below a reconciliation of net debt to long-term debt, the most comparable GAAP measure.

($ in millions)	As of June 30, 2025	As of December 31, 2024
Long-term debt	9,882	6,683
Long-term debt due within one year	70	53
Total Debt	9,952	6,736

Add:
Transactions costs, premiums or discount included in the carrying value of debt	86	52
Less:
Unrealized foreign exchange on translation of foreign currency debt¹	175	(97)
Cash and cash equivalents	(1,691)	(1,531)
Net Debt	8,522	5,160

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.

Free Cash Flow reconciliation

See below a reconciliation of Free Cash Flow to net cash provided by operating activities, the most comparable GAAP measure.

	Three months ended June 30,
($ in millions)	2025	2024
Net cash provided by operating activities	359	323
Less cash impact of:
Purchases of property and equipment	(37)	(28)
Purchases of intangible assets	(9)	(40)
Capitalized software	(157)	(84)
Free Cash Flow	156	171

Constant currency growth rate reconciliation

See below a reconciliation of constant currency growth rates to nominal currency growth rates, the most comparable GAAP measure.

($ millions except percentages)

Three months ended June 30,

Unaudited

2025

2024

YOY

2025

2024

YOY

FX impact

Revenue

1,791

1,527

+17%

(2)

1,525

+17%

International

2,396

2,084

+15%

2,148

+12%

Group

4,187

3,611

+16%

3,673

+14%

Adjusted EBITDA

400

260

+54%

(3)

257

+56%

International

591

523

+13%

539

+10%

Unallocated corporate overhead

(72)

(45)

+60%

(5)

(49)

+46%

Group

919

738

+25%

747

+23%

See below a reconciliation of other reported constant currency revenue growth rates to nominal currency growth rates.

	Three months ended June 30, 2025
Unaudited	YoY		YoY		YoY
	Nom		FX impact		CC
International sportsbook revenue	+4	%	+2	%	+2	%
International iGaming revenue	+27	%	+4	%	+23	%
UKI sportsbook revenue	(12	)%	+5	%	(17	)%
UKI iGaming revenue	+17	%	+7	%	+10	%
SEA sportsbook revenue	+64	%	+7	%	+57	%
SEA iGaming revenue	+70	%	+3	%	+67	%
APAC sportsbook revenue	+3	%	(3	)%	+6	%
APAC iGaming revenue	+24	%	(3	)%	+27	%
CEE sportsbook revenue	(15	)%	+4	%	(19	)%
CEE iGaming revenue	+13	%	+3	%	+10	%

International adjusted EBITDA	+13	%	+3	%	+10	%

International revenue by region

($ millions except percentages)	Three months ended June 30,
Unaudited	2025	2024	YoY		YoY		YoY
			Nom		FX impact		CC
UK and Ireland	936	928	+1	%	+6	%	(5	)%
Southern Europe and Africa	657	390	+68	%	+5	%	+63	%
Asia Pacific	402	385	+4	%	(3	)%	+7	%
Central and Eastern Europe	138	128	+8	%	+3	%	+5	%
Brazil	44	18	+144	%	(31	)%	+175	%
Other regions	219	235	(7	)%	+2	%	(9	)%
Total segment revenue	2,396	2,084	+15	%	+3	%	+12	%

Reconciliation of supplementary non GAAP information: Adjusted depreciation and amortization

($ millions)	Three months ended June 30, 2025				Three months ended June 30, 2024
Unaudited	US	Intl	Corp	Total	US	Intl	Corp	Total
Depreciation and Amortization	34	324	11	369	28	236	8	272
Less: Amortization of acquired intangibles	(4)	(205)	—	(209)	(4)	(143)	—	(147)
Adjusted depreciation and amortization¹	30	118	11	160	24	93	8	125

1.	Adjusted depreciation and amortization is defined as depreciation and amortization excluding amortization of acquired intangibles
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply.

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$1,000,000 Super Pass Bonus: Each of the 33 Bracelet winners will receive a coveted $30,000 Super Pass, granting them direct access to the record-breaking WSOP Paradise $60M Super Main Event in the Bahamas this December
$1,000,000 Ranking Freeroll: The top 10 countries in the Bracelet Rankings will unlock 10 exclusive freeroll tournaments for their players, with prize pools scaled according to each country’s final rank, adding another layer of national pride to the competition

“WSOP Online is about to deliver another incredible experience,” said Daniel Negreanu, GGPoker Global Ambassador. “With 33 gold bracelets up for grabs, huge prizes, plus millions in special bonuses like the Continental Flipouts and Super Passes to WSOP Paradise, this series is a must-play for any poker enthusiast. It’s a truly global celebration of the game, and I can’t wait to see who takes home the gold!”

The wider poker community can follow the WSOP Online action live at GGPoker.tv, with the final table of the $5K Main Event broadcast on September 23 at 18:45 UTC (hosted by Jeff Gross & special guest) and the final table of the $10K GGMillion$ High Rollers broadcast on September 30 at 18:45 UTC (hosted by Jeff Gross & Daniel Negreanu).

Players can qualify for each monumental WSOP Online event through satellites running around the clock on GGPoker, making the dream of winning a WSOP Gold Bracelet more attainable than ever. New players to GGPoker are also eligible to claim the Welcome Bonus, earn rewards with the Honeymoon for Newcomers promotion, and automatically join the Fish Buffet loyalty program, offering regular cash prizes.

The post WSOP Online Returns to GGPoker This August with 33 Gold Bracelets and $5,000,000 in Special Promotions! appeared first on European Gaming Industry News.

Latest News

Week 32/2025 slot games releases

Published

20 hours ago

August 8, 2025

George Miller

Reading Time: 5 minutes

Here are this weeks latest slots releases compiled by European Gaming

Spinomenal has released 4 Horsemen III: Inferno to complement the wildly popular Mythology series. 4 Horsemen III: Inferno invites players into an apocalyptic hellscape where the reels are engulfed by a scorched wasteland under burning skies. A relentlessly surging and dark soundtrack creates an atmosphere thick with tension. The Horsemen return, Conquest, War, Famine, and Death, each carrying their own Free Spins feature, which is triggered with three or more full-sized Scattered Free Spins symbols.

Following the success of Money Coming and Money Coming – Expanded Bets, leading content provider TaDa Gaming has released Money Coming 2. A straightforward 3×1 grid with a bonus reel for Multipliers and a single payline means Money Coming 2 is all about the numbers. With no symbols, just numbers or blank positions on the first three reels, when the numbers land they are added sequentially to make the payout.

Relax Gaming, the award-winning iGaming aggregator and supplier of unique content, has launched Conquer Babylon, a bold release inspired by the ancient wonders of Mesopotamia. Set amidst the towering structures of Babylon, the high-volatility 6×8 slot offers up to 262,144 ways to win, combining immersive visuals with powerful bonus features and a maximum win of 15,000 times the stake.

Get your mops out, this ship is one big floating mess! Only the dirtiest of sailors can sail the seven seas aboard Nolimit City’s latest release, Seamen. If you’re 6ft tall, love the open sea and have a taste for working with seamen, then join the White Pearl today! This ship is used to carrying some big loads.

Gaming Corps – a publicly-listed game development company based in Sweden, has unveiled its latest instant win title: Bass Rewards. Packed with colourful fish and serious prize potential, the game takes players on the fishing trip of a lifetime. In Bass Rewards, every catch counts – inviting players to bait their hook and fish for fortune across a grid swimming with characterful catch.

Amusnet has released its latest video slot game, Tiki Tiki Boo Boo. With a colourful theme and invigorating soundtrack, Tiki Tiki Boo Boo is the perfect summer adventure, complemented by a bunch of special features to guarantee an unforgettable experience. The video slot’s toppling reels mechanics and its 243 ways to pay make the game a fun alternative to slots with standard paylines.

Blueprint Gaming™ has strengthened its long-term partnership with globally renowned operator bet365 through the exclusive release of bet365 Kong 3 Even Bigger Bonus. The 6×4, 4,096-way to win slot provides an intriguing update to the beloved Kong series, with revamped cash harvests and a new-look bonus trail.

Spinomenal has launched its mythology-themed Majestic Zeus slot. Set at the foothills of Mount Olympus, Majestic Zeus welcomes players to a Grecian world where the rewards are potentially as large as the mountains themselves. The 5×3 frame is nestled between two towering columns adorned with Grecian goddesses. A thunderous, powerful musical score evokes the might of Zeus and heightens the entertainment.

Just Slots has announced the launch of its latest title, ‘Unholy Mystery’. Building on strong momentum, this marks Just Slots’ fifth release since the breakout success of their debut game, Sugar Heaven. Following the ominous world of their last release, Book of Arcane 100, Unholy Mystery gives the theme a playful twist by blending dark undertones with a party-like atmosphere and a bold visual style that feels like a monster birthday jamboree.

TaDa Gaming has released Fortune Gems 500, a thrilling 3+1 reel video slot that dazzles with elegant visuals and dynamic rewards. Its core innovation lies in the special fourth reel, which randomly displays multiplier values up to 500x or a powerful Ex NUDGE symbol.

Playson welcomes the return of its lucky leprechaun in the charming new release, 4 Pots Riches: Hold and Win, with the mischievous figure on hand to elevate wins with a host of enriched features. The highlight is the Super Pot Bonus Game, which is triggered by the Super Clover Bonus Symbol.

BGaming puts a fresh spin on the popular fishing genre with the launch of Big Tuna Bonanza. This charming adventure pulls inspiration from some of the most popular titles in the category, inviting players to cast their lines and reel in big wins. Big Tuna Bonanza is bigger and bolder than the fishing games that have come before it.

Play’n GO revives one of its earliest icons with Lady of Fortune Destiny Spins. The Lady steps back into the spotlight with a refreshed presence, ushering in a wave of unpredictability that rewards attention and patience in equal measure. With a glowing crystal ball at her side, the Lady of Fortune transforms missed chances into charged potential.

The post Week 32/2025 slot games releases appeared first on European Gaming Industry News.

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