Flutter cuts US profit forecast on gamblers' winning streak
Paddy Power and FanDuel-owner Flutter Entertainment has cut its forecast for full-year US profit growth, after a winning streak for gamblers dented earnings at the world's largest online betting company for the second quarter in a row.
Bookmakers tend to suffer when favourites win, and Flutter expects US core profit to be $180m lower this year at $1.13 billion due to an unprecedented run of bettor-friendly results during the March Madness college basketball tournament.
That would still represent 123% year-on-year growth at the rapidly growing and market-leading FanDuel.
Flutter nudged up its group-wide profit forecast to $3.18 billion from $3.16 billion in March after a $100m positive foreign currency impact and a $120m acquisition contribution not included previously.
Flutter's first-quarter adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of $616m, up 20% year-on-year, were below the $658m expected by an average of 13 analysts with LSEG SmartEstimate.
It was the second quarter in a row that a series of unlikely customer-friendly sports results impacted earnings following a similarly high rate of NFL favourites winning late last year.
However, Flutter said sporting outcomes and, as a result, its own gross revenue margins would align to expected outcomes over time. It used the example of previous swings in Premier League soccer results.
CEO Peter Jackson reiterated that he expects gamblers in the US to be resilient in the face of a recent sharp fall in consumer confidence, pointing to the lack of discernible impact in its older Paddy Power, Betfair and Sportsbet brands in Britain and Australia to previous downturns and inflation shocks.
"We're not (seeing any impact)," Jackson told Reuters in an interview.
"Of course we're mindful of the macro challenges but we remain confident in our business and convictions based on the experience that we've seen in the industry in the past and the defensive characteristics of it," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Irish Sun
an hour ago
- The Irish Sun
Man Utd ‘decide who to sell between Hojlund and Zirkzee' with striker set for ‘immediate' transfer
MANCHESTER UNITED have made a major decision regarding the future of Rasmus Hojlund and Joshua Zirkzee at Old Trafford. 4 Manchester United have decided to hold on to Joshua Zirkzee over Rasmus Hojlund 4 Man Utd could keep Zirkzee and sell Hojlund, with Inter Milan interested Thus, the two strikers have been linked with moves away from According to Corriere dello Sport, however, the Red Devils have decided to hold on to This comes amid intense interest from According to Gazzetta dello Sport, Inter are so keen on the Denmark international they are set to go "full speed ahead" for his signature. Read More on Man Utd The two Italian sources claim United are much more interested in a permanent deal. And Amorim's side value the Dane at around £34-38m this summer. Inter prefer a loan deal with a purchase clause which is almost an obligation to buy in 2026. The Nerazzurri's offer would also include a hefty loan fee for the initial year. Most read in Football BEST ONLINE CASINOS - TOP SITES IN THE UK United are not in a hurry to sell Hojlund as his contract runs until 2028. Inter feel like that could work to their advantage as they can wait until the Red Devils sign a new striker. Paul Scholes says Man Utd must keep Rasmus Hojlund and reveals how to get the best out of him Man Utd are keeping tabs on the likes of Sporting Lisbon's Viktor Gyokeres and Napoli's Victor Osimhen. And if the Premier League giants manage to get a new centre-forward, who will almost certainly command a high transfer fee as well as expensive wages, then they might have to make room in the squad and salary bill. Hojlund is keen to move to Inter with the Serie A giants' officials working on a potential deal from the US, where the club is taking part in the Club World Cup. There's already been an initial meeting in Milan and another via intermediaries is expected to take place in the coming days. 4 4
Irish Independent
an hour ago
- Irish Independent
Ireland international CJ Fulton to train with Denver Nuggets ahead of NBA draft
The Belfast man will aim to impress a second set of coaches before this year's NBA draft on June 25-26, having tried out with Timberwolves after their Western Conference finals defeat to Oklahoma City Thunder. The 22-year-old guard hopes to become the third Irish-born player to compete at the elite level in the United States after Pat Burke and Susan Moran. Burke played for Orlando Magic and Phoenix Suns in the NBA between 2002 and 2007 while Moran was part of the New York Liberty squad during the 2002 WNBA season. Fulton has just finished his senior year at US college side Charleston Cougars and featured for them at March Madness last year. He first moved Stateside in 2020, joining the Winchendon School in Boston before a securing a scholarship to Lafayette University and then a move to Charleston. Fulton, son of coach and former international Adrian, claimed the Super League title with Belfast Star in 2020 before his departure for the States.
Irish Independent
2 hours ago
- Irish Independent
Mathys Tel completes permanent move from Bayern Munich to Tottenham on six-year deal
The 20-year-old forward spent the second half of last season on loan from the Bundesliga champions and scored three goals in 20 appearances. The loan included an option for Spurs to make the deal permanent for £45.8million, however the PA news agency understands the club successfully negotiated the fee down to £29.8m. Having moved to Bayern from Rennes in 2022 he initially enjoyed a significant role, playing 69 times during his first two seasons before falling out of favour when Vincent Kompany was appointed a year ago. He made only eight league appearances during the first half of last season before being loaned to Spurs - whom he initially turned down before an abrupt change of heart late in the January transfer window. The club finished 17th in the Premier League, their lowest-ever finish, but qualified for the Champions League courtesy of their 1-0 win over Manchester United in the Europa League final. Tel, who was an unused substitute in the final in Bilbao, is currently representing France at the under-21 European Championships in Slovakia alongside team-mate Wilson Odobert, and scored his team's opening goal of the tournament, a penalty in Saturday's 3-2 win over Georgia. Bayern's director of football Max Eberl said: "Mathys Tel came to FC Bayern as a very young player and took his first steps into top-level international football here. "He was a popular figure in our team, always giving his all for the club and the team. It has become clear that the move to Tottenham was the right one for his development."
