Flutter Shares Plummet: Gambler's Massive Winnings Cause Significant Stock Drop for Paddy Power Owner
Revamped Rant:
Flutter, bigwig in the gambling scene, boasting ownership of Paddy Power and Betfair, has spruced up its profit predictions despite falling short of market expectations in Q1 2025. But don't be fooled, they didn't level up the predictions during Q1—they just went ahead and included their acquisitions of Snaitech and NSX, and tweaked some currency exchange rates in their total haul.
This quarter didn't quite meet expectations as far as revenue and profit are concerned. The US March Madness college basketball series saw a string of favorites taking the trophy, which had a direct impact on their numbers. According to Bank of America, they were forecasted to bring in $3.8bn in revenue with an adjusted operating profit of $688m. It ended up being only $3.7bn and $616m, but in terms of growth, it's still a significant jump from Q1 last year—eight and 20 percent respectively.
This revelation sent Flutter's stock plummeting by more than two percent. Their shares have seen a nearly 14 percent decline since the start of 2025. But hey, fortune favors the bold, because they turned that stumble into an upgrade. You see, those acquisitions and exchange rate tweaks weren't part of the initial guidance—so, they adjusted their revenue forecast for the whole year by a cool $1.2bn. But, ironically, they slashed US revenue projections by $280m.
Despite missing the Q1 predictions, this still represents a whopping 123% growth for their US giant Fanduel. Their estimated 2025 operating profit also received a slight boost up to $3.2bn. Now, they have a whopping 14.9 million monthly players, up from 13.7 million in Q1 2024.
The CEO, Peter Jackson, sounded pretty pleased with the quarter's performance, especially the scaling of their US business. Fanduel continues to dominate the US, maintaining its top spots in both online sports betting and iGaming. Their International segment also put up a worthwhile fight, with the acquisition of Snai in Italy enhancing their edge.
Oh, and did I mention that this quarter's proceeds were bolstered by their "Your Way" pricing technology and various operational improvements? Yep, ain't gonna catapult them to the top without a solid fight. Remember, the gamble's always risky, but as long as you play your cards right, the rewards can be big. So, here's to Flutter for swiping the deck in their favor!
- Despite Flutter's profit predictions receiving an upgrade due to acquisitions and currency exchange rate adjustments, it fell short of market expectations in Q1 2025, resulting in a two percent drop in their stock.
- Bank of America had forecasted Flutter to bring in $3.8bn in revenue with an adjusted operating profit of $688m, but the actual figures ended up being $3.7bn and $616m, respectively.
- Flutter's US subsidiary, Fanduel, still saw significant growth in Q1 2025, representing a 123% increase compared to the same quarter last year.
- With the acquisition of Snaitech and NSX, various operational improvements, and the introduction of "Your Way" pricing technology, Flutter's business in casino-and-gambling, sports, finance, and business sectors remains competitive, aiming for a profit of $3.2bn in 2025.
