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Tag: FLUTTER ENTERTAINMENT

  • Flutter Lowers Its 2025 Guidance Due to Q3 Trouble

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    Online sports betting and iGaming powerhouse Flutter Entertainment has published its Q3 results. While the company’s revenue experienced double-digit growth, its net loss broadened due to a variety of headwinds.

    Flutter’s Revenue Was Strong, But Losses Mounted

    Flutter’s report for the three months ended September 30 outlined revenue of $3.8 billion, marking an increase of 17% year-on-year. The revenue in the US increased by 9%, with the International segment showing growth of 21%.

    In addition to that, Flutter’s adjusted EBITDA increased by 6%, reaching $478 million. The adjusted EBITDA margin for the same period was 12.6%, the company reported.

    These metrics reflected the acquisitions of Snai and Betnacional, as well as the strong performance of the company’s iGaming segment.

    The company’s net loss, however, increased dramatically from $114 million in Q3 2024 to $789 million in Q3 2025. This reflected a loss per share of $3.91, up from $0.58 in the prior-year period. According to Flutter, the net loss reflects the non-cash impairment charge of $556 million triggered by India’s sudden U-turn in terms of gaming policy. The loss also reflects a $205 million payment to Boyd to revise US market access terms.

    Despite that, the adjusted earnings per share painted a better picture, showing an increase of 29% to $1.64.

    Flutter’s net cash from operating activities, meanwhile, decreased by 28% to $209 million, again due to the Boyd payment. The company’s free cash flow at the end of the quarter was down 78% year-on-year to $25 million.

    Flutter Lowered Its 2025 Outlook Due to the Headwinds

    Due to the impact of Q3 and the upcoming launch of FanDuel Predicts, Flutter has updated its 2025 outlook. The company now expects group revenue of $16.69 billion for the year, and adjusted EBITDA of $2.915 billion for the same period.

    Flutter noted that these figures reflect reductions of $570 million and $380 million from the previous guidance, respectively. Despite that, the expected revenue and EBITDA still represent year-on-year growth of 19% and 24%, respectively.

    CEO Jackson Was Pleased with the Results Despite the Setbacks

    Peter Jackson, Flutter’s chief executive officer, was pleased with the results, calling Q3 a solid quarter, despite the setbacks. He was especially thrilled about the upcoming launch of FanDuel Predicts and the recent international acquisitions, which will be key growth drivers.

    We have a strong platform for executing our capital allocation strategy, with a continued focus on creating long-term shareholder value.

    Peter Jackson, CEO, Flutter Entertainment

    In the meantime, Flutter’s FanDuel brand just exited Nevada due to growing friction with state regulators about prediction markets’ legal status.

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    Angel Hristov

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  • Flutter Brazil CEO Reveals the Company’s Next Steps in the Region

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    Flutter Brazil recently opened its new office in São Paulo, Brazil. Set in the heart of Faria Lima Square, Latin America’s leading financial hub, the 731-square-meter area reflects the company’s ambitions for the future of Brazil’s fast-growing betting market. According to Flutter Brazil CEO João Studart, this development symbolizes the company’s continued confidence in the region.

    The New Office Represents a Significant Milestone

    Flutter Brazil was created after global gaming leader Flutter Entertainment acquired NSX Brasil, owner of the local powerhouse Betnacional. Since the merger, the company has grown to over 400 employees, blending global expertise with local knowledge. Flutter Brazil operates via a hybrid model, with offices in São Paulo and Recife, as well as teams working remotely all over the nation.

    The newly opened office was designed by Athié Wohnrath, one of Brazil’s most distinguished architectural firms. Its interior emphasizes open collaboration, sustainability, and a robust sporting identity. A football-themed conference room and an arena-like lounge with a bar are among the features that enable employees and visitors to watch live events, fostering a sense of collective experience.

    The new office represents our commitment to creating an environment of constant evolution for our teams and the market in which we operate.

    João Studart, Flutter Brazil CEO

    According to Studart, Brazil’s gambling sector is entering a phase of consolidation. He added that such a development would reward operators who act with integrity and remain consumer-focused. With such values remaining core to Flutter Brazil’s regional ambitions, the company remains perfectly positioned to capitalize on industry trends and retain its leadership position.

    Brazil’s Market Continues to Evolve

    Beyond the new office, CEO Studart’s attention remains focused on the broader regulatory and commercial landscape. Brazil’s gambling market officially opened on 1 January 2025, bringing a surge of activity. Government reports reveal that gross gaming revenue reached BRL 17.4 billion ($3.2 billion) in the first six months of the year,  generating BRL 3.8 billion in tax revenue.

    Despite these positive figures, Studart notes that the rapid expansion has been accompanied by uncertainty. In a recent interview for iGB, he urged caution by regulators as they consider tightening the rules on advertising or introducing a retroactive tax on operators. According to Studart, overly restrictive regulations could push consumers away from the regulated sector.

    The progress of regulation has laid the foundation for a more balanced ecosystem. Flutter Brazil sees this new scenario as fertile ground for sustainable growth.

    João Studart, Flutter Brazil CEO

    While Brazil’s regulated sector faces imminent challenges, Studart remains optimistic. He noted that the future of betting in Brazil will depend on collaboration between policymakers, operators, and consumers. He added that Flutter aims to help the sector mature responsibly, with trust and transparency remaining at the forefront.

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    Deyan Dimitrov

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  • JMP Is Optimistic about Flutter’s Stake in Betnacional  

    JMP Is Optimistic about Flutter’s Stake in Betnacional  

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    JMP Securities analysts are optimistic about Flutter’s recent acquisition of a 56% stake in NSX Group, arguing that it would allow the latter company to drive strong synergies in Brazil.

    Flutter’s Brazil Bid Is In Line with the Company’s Strategy

    According to a NEXT.io report, JMP Securities believes that Brazil’s large population and ongoing sports betting regulation will be a catalyst for success.

    Flutter, for context, just acquired a 56% stake in Betnacional’s parent company, NSX Group. This arrangement, expected to close in early 2025 and subject to regulatory approvals, would combine Betfair Brazil’s operations into NSX, creating a new entity called Flutter Brazil.

    The move, according to JMP, aligns with Flutter’s usual strategy of ushering in growth via key M&A activity and acquisitions of well-known local brands in regulating regions. The analysts estimate that Flutter has so far spent $11.5 billion on M&A activity outside the United States.

    JMP Experts Are Optimistic about Brazil

    JMP experts highlighted the huge untapped potential of Brazil where gaming and betting have been largely unregulated for years. The firm noted that when markets go green, their size usually increases, providing more opportunities for investment, as well as marketing and media deals.

    JMP noted that Betfair and NSX Group have largely been posting unexciting EBITDA results in Brazil as they were held back by a lack of scale and market-specific factors. However, the to-be-regulated Brazilian market would likely provide Flutter Brazil with plenty of growth opportunities, allowing it to capitalize on its position to achieve synergies. 

    In any case, experts believe that Brazil will cement itself as the most attractive betting market outside the US by the end of the decade. The JMP experts were likewise optimistic about NSX’s business and its growth potential.  

    The analysts concluded that Flutter is likely to provide further insights into its plans at its investor day on September 25.

    Brazil Adopts Stricter Rules as Betting Regulation Looms

    Speaking of Brazil, Isaac Sidney, president of the Brazilian Federation of Banks, demanded that the government accelerate the ban on betting via credit cards. Citing problem gambling-related concerns, Sidney argued that such a measure would protect Brazilian players from harm.

    A week ago, Brazil also took a stance against riskier online gambling games such as Fortune Tiger and Fortune Dragon. The Ministry of Finance restricted addictive products that were deemed to be too dangerous and addictive. The ministry also accused several operators of misleading players with unrealistic odds and prompting them to overspend.

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    Fiona Simmons

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  • Flutter Shifts Primary Listing to NYSE, Promotes New CFO

    Flutter Shifts Primary Listing to NYSE, Promotes New CFO

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    In a significant strategic move, Flutter Entertainment, the world’s largest online betting company and owner of FanDuel, has officially transferred its primary listing to the New York Stock Exchange (NYSE). Flutter also announced the appointment of Rob Coldrake as CFO, marking a pivotal moment in the company’s evolution as it heightens its focus on the promising US market.

    The US Market Remains a Primary Focus

    Since February 2023, Flutter has been actively engaging with US investors, existing and potential, as well as shareholders globally. The feedback has been highly supportive, prompting Flutter to shift its primary listing to the United States. The initial step in this process was completed on 29 January 2024, with the additional listing of Flutter’s ordinary shares on the NYSE.

    Earlier this month, Flutter shareholders overwhelmingly endorsed the shift during the Annual General Meeting in Dublin. This decision follows the company’s delisting from the Irish stock exchange, Euronext Dublin, earlier this year. Flutter CEO Peter Jackson remarked on this groundbreaking milestone, highlighting the rising importance of the US market to the business.

    We have a fantastic position in the US, with FanDuel the clear number one operator, and we look forward to this next step on our journey.

    Peter Jackson, Flutter Entertainment CEO

    The US primary listing is widely regarded as a natural fit for the group, reflecting the substantial opportunities within this expanding market. As more states legalize iGaming and online sports betting, Flutter remains primed to leverage its leading FanDuel brand to capitalize on new opportunities, pull ahead of competition, and achieve lasting value.

    Flutter’s New CFO Has a History of Success

    In tandem with its strategic shift, Flutter Entertainment announced the appointment of Rob Coldrake as the new group chief financial officer, effective immediately. He succeeds Paul Edgecliffe-Johnson, who is stepping down due to the extensive time required in the US and his family commitments in the UK. Coldrake, previously the chief financial officer of Flutter International, joined the group in 2020. 

    Coldrake’s career includes 14 years at hospitality company TUI in various financial roles, giving him substantial experience and honing his leadership skills. CEO Jackson lauded the new CFO’s exceptional expertise, highlighting Coldrake’s significant contributions during his time with Flutter. As Coldrake steps into his new position, he must help maintain Flutter’s trajectory, continuing the work of his predecessor.

    I am delighted that Rob will become our next group CFO. His skills and experience will help us to take advantage of the significant opportunities before us.

    Peter Jackson, Flutter Entertainment CEO

    With its new listing on the NYSE and a seasoned CFO at the helm, Flutter Entertainment is well-positioned to capitalize on the dynamic opportunities in the burgeoning US sports betting and iGaming market. Analysts maintain their positive outlook regarding the gaming giant, highlighting the positive impact of recent developments as the company gears up for sustained growth.

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    Deyan Dimitrov

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  • Flutter Entertainment Shares Up 5% as Analysts Remain Optimistic

    Flutter Entertainment Shares Up 5% as Analysts Remain Optimistic

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    Renowned betting and gaming operator Flutter Entertainment experienced a significant surge in its share value. Despite increased competition, the company’s FanDuel brand has maintained its leadership position in the USA, and its overseas investments also pay significant dividends. This development aligns with Flutter’s plans to enter the New York Stock Exchange after it stops trading its ordinary shares on Euronext Dublin by 23 January.

    The US Market Presents Significant Opportunities

    The notable 5% share price increase is primarily due to Peel Hunt’s favorable opinion on the company’s prospects, centering around its FanDuel brand. The investment firm projects Flutter’s US business to generate an adjusted EBITDA of $180 million for the full year of 2023. The following year should allow the gambling giant to cement its positions in established jurisdictions, doubling down on profitable markets.

    Peel Hunt’s forecast for Flutter aligns with the company’s November guidance, predicting an adjusted EBITDA of approximately £1.44 billion ($1.83 billion), excluding the US market, and revenue of £3.75 billion ($4.77 billion) from the US. Despite this stellar performance, Flutter’s shares declined over 10% in the last six months, driven by regulatory uncertainties in the UK and Australia.

    These developments highlight Flutter’s increasing reliance on the US market, which saw a significant expansion in 2023 and should remain the company’s most important revenue driver. Sisal is another promising Flutter subsidiary, as its lottery business was a standout performer within the company’s international division, successfully tapping into growth markets.

    Overseas Operations Remain Vital

    Flutter Entertainment is preparing for a dual listing of its shares on the New York Stock Exchange starting 29 January 2024, contingent upon regulatory approvals. This move aligns with the company’s strategy as it revealed that over 30% of its Q3 2023 revenue stemmed from the burgeoning US market.

    Conversely, the gambling giant’s imminent exit from the Dublin Stock Exchange should streamline its operations and minimize regulatory complexities. Flutter’s ordinary shares will stop trading on Euronext Dublin on 23 January 2024. However, the company will keep its listing on the London Stock Exchange, highlighting its substantial regional investments.

    Analysts believe that favorable industry trends can further propel Flutter’s shares as it draws renewed interest from US investors. The company’s diverse, globe-spanning portfolio enables it to capitalize on new developments, delivering long-term and sustainable growth. While 2024 will undoubtedly present significant challenges for the broader industry, Flutter remains well-equipped to capitalize on its strengths.

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    Deyan Dimitrov

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  • Flutter Entertainment to Delist from Euronext Dublin, Eyes New York Listing in Q1 2024

    Flutter Entertainment to Delist from Euronext Dublin, Eyes New York Listing in Q1 2024

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    Flutter Entertainment, the parent company of FanDuel, has decided to delist from Euronext Dublin, Ireland’s stock exchange, as part of its strategy to add a New York listing in the first quarter of 2024. The move comes amid regulatory considerations and technical challenges in maintaining the company’s Dublin listing.

    Europe Remains a Challenging Regulatory Environment

    While Flutter plans to remain listed on the London Stock Exchange, it has opted to delist from Euronext Dublin. The decision is rooted in the desire to streamline operations and facilitate easier regulatory compliance. The company stated it preferred to maintain a listing in Ireland but cited challenges and technical difficulties that hindered the retention of its Dublin listing.

    Flutter’s decision to gradually shift its focus away from Europe comes amidst a series of setbacks on the Old Continent. While the gaming giant’s UK & Ireland division showed an 11.2% year-on-year revenue increase, reaching $566 million, the region’s uncertain regulatory landscape has impacted the company’s operations, causing significant concern.

    Flutter’s recent announcement about the closure of 21 Paddy Power betting shops in Ireland further destabilized its position in the region, as the Irish government announced a new Gambling Bill to restrict betting ads between 5:30 am and 9:00 pm. Flutter urged policymakers to reconsider, fearing such a change could impact revenues.

    US Operations Enjoy Stellar Growth

    Flutter has had significantly more success in the USA, as Q3 results revealed robust growth. The company’s US-facing operations saw revenues of £668 million ($820.2 million), up year-over-year by 12%. New York was one of Flutter-owned FanDuel’s most successful jurisdictions, as it became the first state to surpass the $2 billion handle mark.

    Other highlights of Flutter’s latest trading update included the successful acquisition of a 51% stake in MaxBet, a leading betting and gaming operator with a presence in Serbia. This move signifies that despite Flutter’s increasing focus on the USA, the company will maintain its foothold in its core markets and continue investing in promising European jurisdictions.

    The move to delist from Euronext Dublin and seek a New York listing aligns with Flutter’s broader vision and ongoing efforts to navigate the dynamic landscape of the global gambling industry. The company has maintained impressive momentum, but rising industry challenges have forced it to adapt and reconsider its priorities.

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    Deyan Dimitrov

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  • Flutter to sponsor horse racing documentary series to air on ITV1 in 2024 | Yogonet International

    Flutter to sponsor horse racing documentary series to air on ITV1 in 2024 | Yogonet International

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    Flutter UK & Ireland has announced a partnership with ITV and other industry partners for a six-part documentary on British horse racing to be shown on ITV1 and ITVX in 2024.

    The documentary will focus on the 2023-24 Jumps season and will show behind-the-scenes and life stories of the sport. The project, which will also focus on the welfare of horses and jockeys, seeks to raise the profile of horse racing to a wider audience and will see production start in December.

    The documentary will be produced by South Shore, a production company supported by ITV. Flutter and the Racecourse Media Group (RMG) are endorsing the project, with additional support from bodies such as the Professional Jockeys’ Association and the British Horseracing Authority (BHA).

    Flutter’s involvement is part of the “Do More” pillar of its Positive Impact Plan. According to the company, the goal is to impact the lives of 10 million people by 2030.

    Filming will begin in December and the series is expected to premiere in late summer 2024. South Shore is responsible for productions such as “Freddie Flintoff’s Field of Dreams” (BBC1) and “Football Dreams: The Academy” (C4).

    Ian Brown

    Ian Brown, CEO at Flutter UKI, said: “We are delighted to announce the forthcoming horse racing documentary series in conjunction with ITV and RMG. This is an idea we’ve promoted for some time and we are hugely excited to be bringing the inner story of horse racing, and all the wonderful people who support it to a new and broader audience through a prime time slot on ITV1.

    “In line with a key pillar of our Positive Impact Plan, this is also another great example of Flutter supporting the communities we operate within to ‘Do More’. We have long supported the horse racing industry – investing over £140m into UK racing in 2022 alone – and are committed to working together with all racing stakeholders to support and modernize this unique and enthralling sport through initiatives like this brilliant new series,” he added.

    Simon Daglish, Deputy Managing Director, Commercial at ITV, stated: “Racing drives an enormous amount of passion and excitement among ITV viewers as we know from our unrivaled coverage. This new series is a fantastic chance to build on that excitement and bring this adrenaline-filled sport to a new audience. We are delighted to be working with the racing community to showcase racing in a way that has never been seen before.”

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