Flutter execs stick to generalities in earnings call
Leadership of Flutter Entertainment offered few specifics regarding the company’s first-quarter performance during their May 6 earnings call. They mostly hewed to broad themes and didn’t discuss the day’s biggest news event, the sacking of FanDuel CEO Amy Howe.
“We’ve been pretty clear what issues we’re facing,” explained Flutter CEO Peter Jackson. “We’re getting back to a customer-first approach.” Later he resumed, “This isn’t a bad day or a fundamental change in posture. … There’s no change in strategy.”
Jackson said of the reshuffled management team, “I’m confident this gives the right structure for long-term success.” While he allowed that some weakness in NFL betting leaked over into the first quarter from late 2025, he noted a “very positive response” to the April rollout of FanDuel’s loyalty program.
“Underlying trends have been positive,” Jackson continued, pointing to a 10 percent increase in average monthly icasino players and a consequent 19 percent leap in igaming revenue.
Of the possible encroachment by prediction markets, “We continue to see limited cannibalization,” Jackson reported and said Flutter was continuing to monitor their impact. He called event contracts “an attractive, incremental, customer-acquisition activity” in American states without sports betting. FanDuel’s own prediction-market revenue was described as “modest,” but Jackson promised “a major milestone” in time for the 2026-27 NFL season.
“Overall, I’m pleased with how we’ve executed on our priorities across the group and especially in the U.S.,” Jackson summarized. He added that Flutter would be reviewing whether to continue being listed on the London stock exchange.
“We continue to prioritize investment in our core business,” took up CFO Rob Coldrake, who said that Flutter had repurchased US$190 million in stock during the first quarter and the company would continue to evaluate buybacks. Coldrake added that Flutter was working toward reducing its leverage to two times to 2.5 times cash flow over the long term. It stood at 3.7 times at quarter’s end.
Although revenue and cash-flow guidance for the full year were lowered, Coldrake said, “I’m encouraged by the positive operational signals we are seeing.” He still expected second-quarter cash flow of $104 million, driven down by prediction-market launch costs, World Cup marketing, and new-state launches in the U.S. He also forecast that one additional state would launch igaming in the next three years.
Of the managerial upheaval, Jackson said, “Now is the time to put in place new leadership. There’s no change in our strategy or posture.”
Most of the questions from Wall Street stock analysts concerned prediction markets and, to some extent, the uncertainty surrounding them. “You’re right that there’s a lot of noise,” Jackson commented. “I’m excited by the incremental opportunity, [but] we’re going to live with that uncertainty” until the U.S. Supreme Court rules on the matter.
Jackson furthermore called market-making “an exciting opportunity” to show off FanDuel’s pricing capabilities. “It’s a good opportunity to monetize our price-making expertise. We’re making money today from offering this. It’s small scale at the moment,” but would expand in time.
Saying that Flutter wanted to acquire as many customers as possible through its One App, Jackson and Coldrake would not offer estimates as to what success in prediction markets would look like. “We’re not upping the level of investment,” Jackson said, while Coldrake added that FanDuel was remaining very disciplined and would spend more if it were warranted.
As for possible promotional warfare, Jackson didn’t see any change in the competitiveness of the market and FanDuel’s long-term marketing deals insulate it from price fluctuations.
Pressed on the pace of prediction-market investment by Flutter, Coldrake replied that the first quarter of 2026 was about testing and learning. “We’ve always said that we expect the majority of our spend to be in the second half,” including the World Cup and NFL seasons. “But it’s an evolving picture.”
Asked whether bet margins or more players were a higher priority for Flutter, Jackson replied, “The biggest driver of our net-win margin is the bet mix,” including single-game parlays. “We’re simply meeting that customer need.”
Analysts hoping for a second-half ramp-up in Flutter’s numbers were told by Coldrake, “We’re seeing some positive, year-on-year, handle trends in the NBA.” He added that Flutter didn’t need massive variance in handle in order to meet its targets. “In the short term, we’re seeing some encouraging trends.”
Gross margins, Coldrake said, were being dampened by higher sports betting taxes in states like New Jersey and Illinois. But payment-fraud costs were down.
Of FanDuel’s igaming performance, “We were really pleased,” Jackson said. “The focus we’ve had on our rewards club has been really important in the business. The market can’t keep going at the same percentage rate but there’s still a long way to go.”
The quarter also marked the shuttering of FanDuel Picks and the FanDuel TV racing network. “This is a constant focus for us,” Coldrake said. Eliminating those offerings created “some good cost efficiency. We will continually review, but the majority of our brands are still performing extremely well.”
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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