Shares in Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT), the world's largest online sports betting and gaming operator, fell 4% to 7,404p after the company reported a sharp drop in profits and trimmed its full-year guidance, overshadowing a stronger-than-expected revenue performance.
Net income fell 38% to $209 million in the first quarter, with earnings per share down 22% to $1.23, as costs from recent acquisitions and investment in its US prediction markets business weighed on the bottom line. Adjusted EBITDA rose just 2% to $631 million on revenues up 17% to $4.3 billion.
Full-year guidance was cut, with group revenue now expected at $18.3 billion and adjusted EBITDA at $2.865 billion, down from prior targets of $18.4 billion and $2.97 billion, respectively, reflecting unfavourable sports results and the costs of a new launch in Arkansas.
US revenues grew 6% to $1.76 billion, but sportsbook grew just 1% as Flutter continued to absorb the effects of customer losses that began in the fourth quarter of 2024. FanDuel's active player base was 6% lower year-on-year, though underlying trends improved through the quarter and returned to growth in March.
Flutter announced management changes alongside the results, with Dan Taylor appointed president of Flutter Entertainment with oversight of FanDuel, while Christian Genetski assumes day-to-day leadership of the US business following the departure of Amy Howe.
International revenues rose 27% to $2.54 billion, boosted by the Snai and Betnacional acquisitions, though organic revenue was flat year-on-year.
Chief executive Peter Jackson said the core fundamentals of the business remained strong and that Flutter had the right strategy and portfolio of brands to capitalise on long-term growth opportunities.
Flutter said it had commenced a review of its London Stock Exchange listing.