Flutter swings from loss to profit
FanDuel parent Flutter Entertainment has reported a profit of US$335 million in the first quarter of 2025. This reversed a US$117 million loss a year earlier.
The company recorded cash flow of US$616 million, a 20% increase, on revenues of US$3.7 billion.
Sports betting handle grew 8%, “in line with expectations with lower-than-expected basketball handle, offset by stronger growth on other sports,” Flutter stated.
Flutter offered bifurcated earnings guidance to investors, raising expectations for international operations and lowering them for the US. Revenue projections were up 7%, with cash flow expectations up 1%.
Overseas revenue forecasts were boosted 17% to $9.7 billion, while forecasts for the US were dialed back 4% to US$7.4 billion.
Revenues were up 8%, missing Wall Street’s consensus projection by 5%. Soft US sports results were a major contributory factor.
The effect of prediction markets upon Flutter was described by Jefferies Equity Research analyst James Wheatcroft as “limited”. “Flutter already runs the largest sports exchange in the world (Betfair),” he said.
“I am pleased with the performance of the business during the first quarter,” commented Chief Executive Peter Jackson in a prepared statement. “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.”
In a discrete letter to shareholders, Jackson said, “It is now just over 15 months since Flutter listed on the New York Stock Exchange and almost a year since our US primary listing became effective, making it a suitable time to reflect on Flutter’s differentiated positioning and the significant global opportunity we see ahead.”
He continued that Flutter “has access to a significant global market and runway of growth with the regulated sports betting and igaming market expected to be worth” as much as US$368 billion by 2030.
“Our diversified portfolio of local hero brands are winning in their respective markets with leading positions and local scale advantages,” Jackson wrote. “The Flutter Edge is our key sustainable competitive advantage and global differentiator which enables our local brands to both access and contribute to leading global capabilities across product, technology, expertise and scale.”
Addressing macroeconomic concerns, Jackson stated that Flutter had weathered “previous periods of consumer pressure” internationally with no discernible impact to its business. He added that he was convinced that igaming and sports betting had “strong defensive characteristics” over the long haul.
Jackson cautioned shareholders that “it is important to remember that we run the business for the long-term, often making decisions that impact short-term profitability, for the greater benefit of longer-term profitability.
“The nature of sports results will also influence our quarterly results, as we have seen in our most recent quarters, but over time these are transient and do not compromise our compelling growth model and long-term value creation opportunity.”
To that end, he highlighted the purchase of Snai in Italy and the impending acquisition of NSX in Brazil, as well as ongoing share repurchases.
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David McKee is an award-winning journalist who has three decades of experience covering the gaming industry.
