Flutter Entertainment Faces Profit Hit as US Bettors Enjoy Winning Streak
This trend has led to unfavorable sports betting outcomes for the company, especially in November and December, due to complex combination bets involving multiple games or outcomes within the same game. As a result, Flutter’s shares on the London stock exchange fell by 4% in early trading on Wednesday.
The biggest loss occurred on December 30, when the Detroit Lions’ thrilling 40-34 win over the San Francisco 49ers resulted in a $74 million loss for Flutter. The game featured nine different touchdown scorers, many of whom were popular among bettors, amplifying the stakes for the company.
As of the end of December, the favorites had won 184 of the first 256 NFL games, representing a remarkable 77% success rate. The games also saw higher-than-expected scores, further complicating betting outcomes. Flutter estimated a revenue hit of approximately $390 million, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) expected to be $260 million lower for the period from November 12 to December 31.
In addition, Flutter’s gross gaming revenue—an important metric measuring the difference between total wagers and payouts—was expected to be $438 million lower than previously forecasted.
These results led Flutter to revise its US revenue forecast for 2024, lowering it by $370 million to $5.78 billion. Its adjusted EBITDA for the US was also reduced by $205 million, dropping from $505 million to $300 million. However, Flutter’s performance outside the US has been more favorable, particularly in the UK, where the English Premier League has contributed positively to its results. This allowed Flutter to raise its revenue and adjusted EBITDA projections for non-US operations by 1% and 2%, respectively.
Despite these challenges, Flutter remains optimistic about its future, with plans to more than double its core profit by 2027. The company continues to target the US market, which is expected to account for nearly half of its earnings due to increased betting frequency.
