NYSE- and LSE-listed online sports betting and iGaming operator Flutter Entertainment is off to a strong start in 2025, thanks in large part to FanDuel’s continued dominance in the U.S. sports betting market.
18% Revenue Rise in the U.S.
The company reported $1.69 billion in U.S. revenue for Q1, marking an 18% jump compared to the same quarter last year.
FanDuel’s sportsbook once again led the way with a wagering handle hit $14.6 billion, up 8% year-over-year, helping sportsbook revenue climb 15%.
Despite a tough March Madness season, which the company called “adverse,” the sportsbook still delivered a healthy 7.8% net revenue margin.
FanDuel retained a strong 43% market share in U.S. online sports betting gross gaming revenue.
Online casino operations in the U.S. also had a standout quarter, surging 32% to reach $472 million. Combined, the two verticals drove an 11% increase in U.S. monthly average players, which now sits at 4.3 million.
Adjusted EBITDA for the U.S. hit $161 million, more than five times higher than a year ago. At the same time, group-wide adjusted EBITDA rose 20% to $616 million.
Net income flipped from a $177 million loss in Q1 2024 to a $335 million profit this quarter, thanks to improved margins and greater scale, especially in North America.
Earnings per share rose by $2.67 year-over-year, boosted by stronger group performance and a favorable Fox option adjustment, with adjusted earnings per share up 51%.
Meanwhile, operating and free cash flow declined 44% and 52%, respectively, mainly due to quarter-end timing on player deposits despite underlying business growth.
Low 1% Revenue Growth Outside the Borders
Outside the U.S., international business brought in just under $2 billion in revenue, a 1% gain, while adjusted EBITDA slipped slightly to $518 million.
Sportsbook revenue dipped 2% to $880 million, but iGaming grew 4% to $1.1 billion.
Regional highlights include 2% growth in the UK and Ireland to $882 million, a 14% rise in Southern Europe and Africa to $448 million, and a 15% increase in Central and Eastern Europe to $140 million.
However, not all global markets fared well. Revenue fell 13% in Asia Pacific, dropped 44% in Brazil to $9 million, and declined 12% in other regions, signaling ongoing volatility.
Flutter Rises Full-Year Forecast
With this strong first quarter, Flutter has raised its full-year forecast for U.S. revenue to between $7.2 billion and $7.65 billion, signaling a potential 28% increase.
U.S. adjusted EBITDA is now expected to hit between $1.01 billion and $1.25 billion, up 123% at the midpoint.
“FanDuel continues to win in the US, while our global scale and technology edge are being strengthened through acquisitions like Snai in Italy,” said chief executive officer Peter Jackson.
Earlier in the month, the company predicted cost synergies of at least EUR 70 million ($79.4 million) within three years of the closing date of the Snail deal.
“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.”, the CEO added.