Flutter Q1 revenue up 8% but US FY 2025 guidance cut on adverse sports results

Flutter Entertainment has reported an 8% year-on-year (YoY) spike in Q1 revenue to $3.7bn, although the operator has decreased its full-year 2025 guidance in the US.

Revenue rose from Q1 2024’s return of $3.4bn, while adjusted EBITDA increased 20% from $514m to $616m for the New York-listed operator.

Average monthly players were also up 8% to 14.9 million, while a net loss of $177m swung to a net income of $335m.

The first three months of 2025 mark Flutter’s first using a new reporting style, with the US (FanDuel) and international carved out as two divisions.

US revenue was up 18% YoY from $1.4bn to $1.7bn, with sports betting rising 15% to $1.1bn and igaming leaping 32% to $472m.

On sports betting, Flutter said FanDuel took a GGR market share of 43%, with that figure rising to 48% on an NGR basis, as actives grew 11%.

The increase in sports betting revenue was as a result of 8% handle growth and net revenue margin rising to 7.8%, with structural revenue margin up 70 basis points to 14.1%.

However, adverse sports results, resulting in a $230m hit to revenue, has seen Flutter reduce its US revenue guidance from $7.7bn to $7.4bn.

Adjusted EBITDA guidance has also been amended, down from $1.3bn to $1.1bn due to the sports results and the planned launch in Missouri.

Flutter said there was an “unprecedented” number of winning favourites across March Madness, while basketball handle growth has been lower than anticipated.

On US igaming, revenue leapt 32% on the back of actives increasing 28%. Bosses said a focus on direct casino customer acquisition was paying dividends. Market share now sits at 27%.

US adjusted EBITDA landed at $161m, compared to $26m in Q1 2024, with marketing and other costs down.

Looking at international, revenue ticked up 1% to $2bn and adjusted EBITDA was down 1% to $518m, both on a reported basis.

Sports betting revenue slid 2% to $880m while igaming was up 4% to $1.1bn as actives in Flutter’s global operations rose 8%.

Sports betting’s dip was due to a 6% decline in stakes, although margin was up to 12.7% due to expanded engagement with bet builders. In fact, structural revenue margin rose 110 basis points to 16.9%.

Within the new international reporting segment, the UK and Ireland accounts for the lion’s share of revenue at $882m, up 2% YoY.

The growth came thanks to a 9% spike in igaming revenue, driven by bespoke games, offsetting a 2% dip in sports betting.

Further investments in sports betting to expand bet builder penetration are planned, while 25% of Sky Bet customers have been migrated to the new in-house platform.

Other new divisions within international include Southern Europe and Africa (SEA), which encompasses Italy, Turkey, lottery operations in Africa and more.

SEA revenue spiked 14% to $448m, with a 25% rise in actives, and will be further bolstered by the addition of Snaitech in Italy as the €2.3bn deal to acquire the brand from Playtech completed last month.

Italian revenue alone rose 9% to $378m, while Turkish revenue was also singled out, up 57%. Italy could be boosted further with Flutter bidding for the SuperEnalotto licence.

APAC, which includes Australia’s Sportsbet and India’s Junglee Games, saw revenue down 13% to $313m, despite 45% igaming growth in India, as the soft racing environment Down Under continued to bite.

Central and Eastern Europe revenue was up 15% to $140m on gains in Serbia and Georgia, while Brazil’s regulated market opening meant revenue slipped 44% to $9m.

However, the acquisition of Betnacional parent company NSX Group should arrest the slide, as Flutter had to adjust to the re-registration of players at the start of the year.

Other global markets revenue was down 12% to $207m due to “the impact of market exits and regulatory change”.

Within international, Snaitech is expected to add $850m of revenue and $190m in adjusted EBITDA to the full-year 2025 results.

Betnacional is also expected to boost revenue by $220m, although it will drag adjusted EBITDA down by $70m, according to new guidance.

As a result, international revenue guidance has been upgraded from $8.3bn to $9.7bn, and adjusted EBITDA rose from $2.1bn to $2.3bn.

Group guidance for revenue is now $17.1bn, up from $15.9bn, and adjusted EBITDA is expected to hit $3.2bn. That includes $250m impact on earnings to account for FX fluctuations.

Peter Jackson, Flutter CEO, said: “I am pleased with the performance of the business during the first quarter, with the scaling of our US business driving a step change in the earnings profile of the group.

“FanDuel continues to win in the US, retaining leadership positions in both online sports betting and igaming, while we saw a positive performance within international, where our scale and the competitive advantages of our Flutter Edge have been enhanced by the acquisition of Snai in Italy.

“We are delivering against our strategic priorities, with clear optionality as an ‘and’ business that can create significant value through a combination of organic growth, accretive M&A and returns to shareholders. The global regulated market opportunity is significant, and Flutter remains uniquely positioned to win.”

The post Flutter Q1 revenue up 8% but US FY 2025 guidance cut on adverse sports results first appeared on EGR Intel.

 Global giant forecasts full-year group revenue to break $17bn due to Snaitech and Betnacional additions
The post Flutter Q1 revenue up 8% but US FY 2025 guidance cut on adverse sports results first appeared on EGR Intel.