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Flutter Entertainment underscores its position as global gambling’s highest valued plc, upgrading its 2025 guidance following a strong start to year trading.
Q1 headline results see the dual-listed NYSE/LSE gambling group post revenues of $3.66bn, up 8% on 2023 comparatives of $3.39bn. Underpinned by accelerated growth in the US, adjusted EBITDA increased by 20% to $616m (Q1 2024: $514m).
Group results were boosted by stable trading, as Flutter posted a group-wide net income of $335m, compared with a loss of $177m in the prior year, due to booking multi-million dollar amortisation charges related to the settlement of the Fox Bet option liability.
Leadership highlighted Flutter’s operational leverage in scaling its portfolio of brands across multiple markets, with average monthly customers reaching 14.8 million (+8%).
The strong start to 2025, combined with new assets to refresh Flutter’s International unit, sees management raise group guidance to $17.08bn–$17.53bn revenue range and $3.18bn–$3.40bn in adjusted EBITDA with “growing confidence in the Group’s ability to leverage scale and market leadership across both the US and international markets.”
In 2025, Flutter has simplified its reporting structure: Group results will now be composed of the US business (FanDuel) and the International Unit, which includes all other brands active in the UK, Europe, India, South America, and Australia.
FanDuel shows profits resilience
In the US, FanDuel reinforced its leadership credentials, generating an 18% increase in revenue to $1.67bn and servicing an active base of 4.3 million customers.
Sportsbook revenue rose 15% to $1.13bn, supported by higher handle and a 50-basis point increase in net revenue margin to 7.8%, even though unfavourable college basketball results during the March Madness tournament negatively impacted gross revenue by 200bps.
Meanwhile, iGaming revenue grew 32% to $472m, driven by a 28% increase in average monthly players and a focused strategy on improving the direct ROI from casino customers.
Significantly, FanDuel delivered a further “swing in profitability”, with adjusted EBITDA of $161m. This marked a more than fivefold increase from the previous year’s $26m resulting in an adjusted EBITDA margin of 9.7%, up by 790bps.
Adjustments for US sports volatility
Acknowledging volatility in US sports, Flutter reduced FanDuel’s 2025 guidance to revenue in the range of $7.2bn–$7.6bn (previously $7.9bn) and adjusted EBITDA of $1.13bn–$1.3bn.
The revision accounts for a $180m reduction in forecast EBITDA, primarily due to adverse outcomes during major sports events such as March Madness. Despite this, the revised guidance still represents a 28% year-on-year increase in revenue and a 123% rise in adjusted EBITDA for FanDuel.
Group CEO Peter Jackson commented: “I am pleased with the performance of the business during the first quarter, with the scaling of our US business driving a step change in the earnings profile of the Group. FanDuel continues to win in the US, retaining leadership positions in both online sports betting and iGaming.”
“US performance continued to reflect our strong US leadership position, with sports betting and iGaming GGR market shares of 43% and 27% in the quarter, and a 48% NGR sports betting share.”
Conservative growth for Flutter’s International Unit
Flutter’s International unit, which consists of all non-US brands, experienced modest growth during Q1, with revenue reaching $2bn and adjusted EBITDA decreasing 1% to $518m, with period results impacted by currency fluctuations.
Sportsbook performance was under par, as turnover decreased 6% year-on-year to circa $6.9bn,though a 50-basis point lift in net revenue margin helped offset the volume decline.
In the UK and Ireland, iGaming revenue grew 9%, supported by premium content rollouts, while sportsbook revenue dropped 2%, reflecting weak interest in horse racing.
The international segment produced strong results in Southern Europe and Africa (SEA) where revenue rose 14% to $448m. Italy and Turkey were standout geographies, with Turkish revenue soaring 57%, or 84% on a constant currency basis, driven by rapid player growth.
The APAC region weighed on Flutter’s international expansion, with Australian sportsbook revenue down 13% to $313m due to soft racing market conditions and poor results. In contrast, India showed strong momentum, with iGaming revenue up 45% year-on-year.
SNAI & NSX Refresh
Flutter revised its 2025 International guidance to reflect the acquisition of Snaitech (Italy) and the expected closing of NSX (Brazil) in May.
The updated outlook for the International Unit forecasts $9.48bn–$9.88bn in revenue and $2.20bn–$2.40bn in adjusted EBITDA, incorporating a combined contribution of $1.07bn in revenue and $120m in EBITDA from the two deals.
Snaitech is expected to be immediately accretive ($850m revenue / $190m EBITDA), while NSX will initially weigh on margins with a $70m EBITDA loss due to early-stage investment in Brazil’s regulated market.
Peter Jackson concluded: “We saw a positive performance within International, where our scale and the competitive advantages of our Flutter Edge have been enhanced by the acquisition of Snai in Italy.
“We are delivering against our strategic priorities, with clear optionality as an ‘and’ business that can create significant value through a combination of organic growth, accretive M&A, and returns to shareholders. The global regulated market opportunity is significant, and Flutter remains uniquely positioned to win.”
