- Revenue rises 16% in Q2
- Adjusted EBITDA up 25%
- Raised full-year guidance
Online sports betting and gaming group Flutter Entertainment (FLTR) revealed that second-quarter revenue grew 16% to $3.61 billion, largely driven by strong performance in the US and international acquisitions.
The shares fell 3% to £222.50 reflecting some disappointment that US growth of 17% lagged the 37% and 36% achieved respectively by key competitors DraftKings (DKNG:NASDAQ) and BetMGM.
CEO Peter Jackson said: ‘I am pleased with the excellent underlying performance we have delivered in the second quarter alongside the good progress made on a number of key strategic initiatives.
‘Since Q1, Flutter gained additional US index inclusion and accelerated ownership of FanDuel to 100%. We also became the largest operator in Italy with the addition of Snai; established a scale position in Brazil through NSX; and successfully executed two transformative customer migrations.’
RAISED OUTLOOK
A reversal of unfavourable sports betting results in prior quarters and the impact of US gaming tax changes led the Paddy Power and FanDuel operator to raise full-year guidance for the second time in 2025.
At the midpoint of the range, revenue is now expected to be $17.26 billion, up from $17.1 billion previously and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) is anticipated to be $3.29 billion, representing 40% year-on-year growth.
In the US, the standout performance came from iGaming which saw a 32% increase in average monthly players reflecting ‘a consistent product roadmap tailored to casino-first customers, the fastest-growing segment in the market’.
The company maintained its number one sportsbook position, ending the quarter with a market share of 41%, while extending its leading iGaming market share to a record 17%.
Paul Leyland at gambling consultancy Regulus Partners believes there is little to get excited about outside of the strength in US iGaming.
‘Global online gambling growth remains comfortably double digit even with the Euros comps headwind, in our view.
‘Flutter’s positioning into mass markets where possible means that it needs to be growing this segment to grow the market and grow share, which Q2 figures show precious little evidence of,’ added Leyland.
