Flutter Entertainment Shares Slide Despite Higher Guidance as Q2 Profit Falls

Flutter Entertainment’s shares fell on Friday despite the online sports betting and iGaming operator raising its 2025 guidance following a strong second-quarter performance in revenue and adjusted earnings.

The company, which owns brands including FanDuel and PokerStars, reported Q2 revenue of $4.19bn, up 16% year-on-year, with adjusted EBITDA rising 25% to $919m. Average monthly players increased 11% to nearly 16 million.

However, net income dropped 88% to $37m, with net income margin falling to 0.9% from 8.2% a year earlier. Flutter attributed the steep decline to non-cash charges, including a significant swing in the valuation of the Fox Option linked to FanDuel, higher amortisation of acquired intangibles, and increased tax expenses. Earnings per share fell 59% to $0.59, though adjusted EPS climbed 45% to $2.95.

Flutter shares are down more than 2.5% on Friday, trading around the 22,330p per share mark. However, the stock has gained around 8.6% this year and is up over 53% in the last 12 months.

The group’s US division continued to power growth, with revenue up 17% and iGaming surging 42%, while its international segment posted a 15% revenue increase, bolstered by the Snai and NSX acquisitions.

Sportsbook growth was softer at 4%, reflecting strong comparatives from last year’s European Football Championships.

Flutter now expects 2025 revenue of $17.26bn and adjusted EBITDA of $3.3bn at the midpoint, representing 23% and 40% growth, respectively.

CEO Peter Jackson hailed the “excellent underlying performance” and progress on strategic initiatives, including taking full ownership of FanDuel and becoming Italy’s largest operator. Despite the upbeat outlook, the sharp profit drop weighed on market sentiment.