Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT) shares slipped 2.5% to 17,364.46p on Thursday after the betting group nudged its 2025 guidance lower, blaming unusually customer-friendly sports outcomes and higher investment in its US business.
The update overshadowed what management described as a “solid” third quarter, with revenue up 17% year on year to US$3.79 billion and average monthly players rising 9%.
The group now expects full-year revenue of $16.69 billion and adjusted EBITDA of $2.915 billion at the midpoint, a reduction of $570 million and $380 million, respectively, versus its prior forecasts.
Flutter said the cut reflects Q3 trends, continued unfavourable sports results into the fourth quarter, stepped-up marketing for FanDuel, the launch costs of FanDuel Predicts, tax adjustments in Illinois and the impact of regulatory changes in India.
US trading was mixed. Strong iGaming growth of 44% drove a 9% revenue uplift, but sportsbook revenue fell 5% as results went the customer’s way and rivals spent heavily on promotions at the start of the NFL season.
International revenue rose 21%, helped by recent acquisitions, though organic sportsbook revenue dipped 6% after a bookmaker-friendly Euro 2024 comparison.
Free cash flow fell sharply to $25 million, largely due to a previously announced $205 million payment to Boyd Gaming to revise market access terms. A $556 million non-cash impairment linked to India contributed to a quarterly net loss of $789 million.
Flutter is preparing to launch FanDuel Predicts in December, a prediction-market product aimed at US states without regulated sports betting.
Chief executive Peter Jackson said the group’s “diversified portfolio and disciplined approach” left it well positioned to deliver “sustainable, profitable growth” despite the guidance adjustment.
City broker Peel Hunt called the performance 'solid', but said it had been 'overshadowed' by the guidance cut.