Flutter faced its fair share of challenges in Q1, but overall revenue was up 8%. In the U.S., revenue rose by 18%, undeterred by customer-friendly March Madness outcomes.
Key Takeaways
- Flutter misses Q1 EPS and revenue forecasts, but posts 8% revenue increase.
- U.S. revenue was up 18%, despite plenty of unfavorable sports results.
- Strategic acquisitions in Italy and Brazil expected to add $1.07 billion in revenue this year.
Flutter Entertainment has reported an 8% year-on-year revenue increase for the first quarter of 2025. While revenue and earnings per share came in below expectations, Flutter delivered solid growth across multiple markets, even as March Madness favorites prevailed.
Revenue for the first quarter reached $3.67 billion, with significant growth for Flutter across both iGaming and sports betting. Net income increased by 289%, which the company attributed to the scaling of its U.S. business, and adjusted EBITDA rose by 20% to $616 million during the period.
Strong growth in U.S. as other sports offset March Madness results
In the U.S., Flutter saw revenue increase by 18%, with a 15% increase in sportsbook revenue. This came despite what the company has called “adverse March Madness sports results,” where triumphant favorites created a decidedly customer-friendly tournament.
There’s no doubt that March Madness results hurt the company’s bottom line. But luckily for Flutter, other sports offset basketball handle to bring U.S. sportsbook handle back in line with expectations. Overall, U.S. sportsbook handle was up 8% in the quarter. Net revenue margin increased 50 basis points to 7.8%.
Flutter’s U.S. iGaming revenue increased by 32%, significant growth that the company says was driven by its “continued focus on U.S. direct casino customers.” Adjusted EBITDA reached $161 million – five times higher than the figure reported in the same period last year.
“I am pleased with the performance of the business during the first quarter, with the scaling of our U.S. business driving a step change in the earnings profile of the Group,” CEO Peter Jackson said.
“FanDuel continues to win in the U.S., retaining leadership positions in both online sports betting and iGaming.”
Steady performance in international markets
Flutter’s international outlook wasn’t quite as strong, but revenue and adjusted EBITDA remained broadly in line with 2024 figures. Flutter reported a 1% rise in international revenue year-over-year, or 3% on a constant currency basis. AMP also grew by 8% during the quarter.
In the UK and Ireland, Flutter saw revenue grow by 2%. Sportsbook revenue dropped 2%, due to a reduction in horse racing handle. The roll out of new premium and bespoke games in the UKI market led to a 9% growth in iGaming revenue YoY, however.
Flutter’s revenue for Southeast Asia grew by 14%, and AMP was up 25% to $1.8 million. Sportsbook revenue rose by 27%, thanks to favorable results in the region. Improvements made to content for Southern Europe and Africa saw iGaming revenue rise by 8%.
Strong performances in Georgia and Serbia meant revenue growth of 15% for Flutter’s Central and Eastern Europe segment.
In India, revenue grew by 45%, but Australia saw an 18% drop due to a combination of unfavorable sports results and horse racing market trends.
Flutter was faced with the implications of customer re-registration in Brazil’s newly regulated market, so it’s not surprising that revenue suffered. Brazil’s revenue was down 44% (or 36% on a constant currency basis) for the quarter.
Flutter eyes growth as deals close on strategic acquisitions
Flutter’s full-year guidance for 2025 was also updated Wednesday, to include the benefits that its most recent acquisitions will bring.
The company completed its acquisition of betting and gaming operator Snaitech S.p.A. last week, in a deal that Jackson says will enhance the “scale and the competitive advantages of our Flutter Edge.”
In May, it expects to close the deal on NSX Group (NSX), the company it acquired an initial 56% stake in last September.
The acquisitions contributed to a new revenue projection of $17.08 billion and adjusted EBITDA of $3.18 billion.
“We saw a positive performance within International … enhanced by the acquisition of Snai in Italy,” Jackson said.
“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.”
