Flutter Entertainment posts $4.19bn second-quarter revenue thanks to US growth but UK and Ireland lags behind

Gambling industry giant Flutter Entertainment reported another leap in revenue in an update on Thursday evening, but strong performance in the US helped mask weaker results in the UK and Ireland.

Group revenue grew by 16 per cent to $4.19 billion during the second quarter, the parent company of Sky Bet and Paddy Power said, while adjusted core earnings rose by 25 per cent to $919 million.

However, that failed to impress the markets on Friday, with Flutter's share price on the London Stock Exchange – where the company has a secondary listing – down nearly seven per cent at 21,320p mid-afternoon.

In the US, where Flutter operates market leader FanDuel, total revenue for the period grew 17 per cent to $1.8bn, driven mainly by a 42 per cent increase in igaming revenue. Adjusted core earnings of $400m included the benefit of favourable sports results.

In contrast, revenue in the UK and Ireland grew by just one per cent, and was down five per cent when accounting for changes in exchange rates.

While gaming revenue was up 17 per cent, sportsbook revenue was down 12 per cent, with less money being gambled in comparison to the same period in 2024 which featured the men's European Football Championship, and sports results going in punters' favour.

Flutter said its international division had been boosted by the acquisitions of Snai in Italy and NSX in Brazil.

Revenue and adjusted core earnings grew by 15 per cent and 13 per cent respectively, with gaming again the main driver due to a 27 per cent increase in revenue. 

Comparatively low sportsbook revenue growth of four per cent again reflected "a very strong performance" in the 2024 Euros and less favourable sports results.

Flutter raised its guidance for the year, saying that group revenue and adjusted core earnings were now expected to be $17.26bn and $3.295bn, representing year-over-year growth of 23 per cent and 40 per cent respectively.  

Flutter Entertainment chief executive Peter Jackson

Chief executive Peter Jackson said: "I'm pleased with the excellent underlying performance we've delivered in the second quarter alongside the good progress made on a number of key strategic initiatives."

Jackson said achievements during the quarter, including taking full ownership of FanDuel, becoming the largest operator in Italy through the addition of Snai to the group and establishing scale in Brazil through the acquisition of NSX, were "a great reflection of our teams' focus and ability to execute effectively, leaving us well positioned for the second half of the year".

David Brohan, gaming and leisure analyst with stockbrokers Goodbody, said the company's performance in the UK and Ireland had been "below our expectations", but that overall it had been a strong update, "notably in the US".

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