Flutter executives spar with analysts during earnings call
Wall Street analysts pressed Flutter Entertainment’s top executives for specifics they couldn’t – or wouldn’t – give during an occasionally tense fourth quarter earnings call on March 4.
Fourth-quarter sports betting handle was “broadly as anticipated,” said Chief Financial Officer Rob Coldrake, as wagering grew 12% in the face of FanDuel-unfavorable NFL outcomes. “2025 started really well,” Coldrake continued. “We don’t really obsess about handle,” as it could be inflated by promotions and parlays.
When another analyst revisited the topic, Coldrake reiterated his point. “We’re happy with where handle is trending,” he added.
As for hold percentages, Coldrake refused to offer specific guidance but said Flutter was making good progress toward its long-term goals. “We’re feeling quite sanguine about where the margins are right now,” he added.
Coldrake was more diplomatic when the subject of prediction markets was raised. “We are monitoring the situation very closely,” he said. “It could be an interesting opportunity” but lacked the richness of a true sportsbook.
Asked about US$90 million in projected negative cash flow from new-market losses, Chief Executive Peter Jackson said US$80 million in red ink would be spilled launching in Missouri. The balance would be spent in Alberta.
Queried on the subject of customer-acquisition costs, Jackson responded that “We’re seeing very strong growth in igaming,” a function of “the fantastic things that we’re doing in terms of product.”
A recent tax increase in Illinois and the prospect of similar hikes elsewhere in the US was confirmed to have had a US$50 million impact. Coldrake said he expected to mitigate half of that in 2025.
Analysts wanted to know how Flutter execs felt about the chances for more US igaming in the new year, but Jackson was circumspect. “The beginning of the year is always the time we get a better read” on the political situation, he said, adding, “we don’t want to jinx anything.”
The Flutter duo denied perceiving any deceleration of US sports betting vis-a-vis igaming. Coldrake said they were seeing “excellent paybacks in both.”
Nor had they spotted any negative impact of US economic uncertainty in online gambling. Coldrake said Flutter’s international business was “very resilient in times of financial downturn.” He added that he was seeing the same in America.
Flutter’s YourWay betting suite had been rolled out in time for the Super Bowl and Jackson said it had a 5% penetration rate. “We’re seeing around 25% of the customers have placed parlay begs of more than 10 legs,” he expanded, noting that he was being very careful with how YourWay is introduced.
Jackson and Coldrake were asked whether they would pursue a second Italian lottery contract but were evasive. Jackson said there was a lotto opportunity and “we’ve been very pleased by the way we’ve been able to run the Super Lotto.” He added that Flutter had a couple of weeks to decide whether to bid again.
Later, another analyst requested that Jackson discuss Flutter’s Italian tactics. The Chief Executive bluntly declined: “We’re not going to talk about our bidding strategy.”
Flutter’s Brazilian ventures were also raised for discussion. “We’re keen to get this deal completed,” Jackson said of the recent acquisition of NSX. “We’re feeling good about these acquisitions and have to get into the building” in Brazil.
Jackson cautioned that the Brazilian entry was quite different from launching in a US state, as Brazil was a legacy market with established providers. Coldrake added that Flutter was still looking at a US$100 million cash flow hit from the cost penetrating Brazil. Although 200 companies had bid on the market, Coldrake felt Brazil would shake out very quickly.
Although Jackson and Coldrake wouldn’t expand on previous earnings guidance, the former did say that “we ended the year with a much bigger business than we anticipated,” including considerable progress in selling parlays.
Referring analysts to earlier guidance, Coldrake added, “Ultimately, we’re very pleased with the progress we’re making toward those targets. We’re on track to get where we outlined.”
Previewing 2025, Jackson said “there’s a lot of product coming to bear from us,” in both sports betting and igaming. “There’s a lot of exciting things to come.”
David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
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