Flutter posts $4.30 billion Q1 revenue as net profit falls 38%

(AsiaGameHub) –   Flutter Entertainment reported higher first-quarter revenue, but costs associated with FanDuel, prediction markets, Brazil, and US expansion negatively impacted profits and guidance.

Key Takeaways

• Flutter Entertainment Q1 revenue increased 17% to $4.30 billion.
• Net income declined 38% to $209 million, while operating profit dropped 66%.
• FanDuel Predicts secured sports contracts in 18 states where online sports betting remains unregulated.

Flutter Lowers Full-Year Guidance as FanDuel Investments Remain High

While Flutter Entertainment achieved group-level growth in Q1, the financial results revealed a more challenging picture. The company, owner of FanDuel, Paddy Power, and Betfair, recorded net income of $209 million for the three months ended March 31, down 38% from the previous year.

Revenue reached $4.30 billion, up 17%, driven by iGaming expansion and new partnerships in Italy and Brazil. However, adjusted EBITDA grew only 2% to $631 million, while operating profit fell sharply by 66% to $76 million.

Management also reduced its full-year 2026 guidance. Flutter now projects revenue of $18.305 billion and adjusted EBITDA of $2.865 billion, down from earlier estimates of $18.4 billion and $2.97 billion, respectively.

The company cited unfavorable sports outcomes in Q1, launch costs related to Arkansas, and operational changes at PokerStars North America as contributing factors. CEO Peter Jackson acknowledged the quarter’s progress but emphasized the need for greater consistency from FanDuel.

“Flutter’s Q1 performance was encouraging, with group revenue increasing 17% year-on-year,” said Chief Executive Officer Peter Jackson. “While we made good progress during the quarter, there remains more to do to ensure the improving US sportsbook trends continue.”

FanDuel generated $1.763 billion in US revenue, up 6%. Sportsbook revenue rose modestly by 1%, while iGaming revenue surged 19%. Flutter noted an improvement in customer engagement throughout the quarter, with average monthly active players shifting from a 5% decline in January to 1% growth by March.

Prediction markets are now fully integrated into the FanDuel strategy. Flutter anticipates that 2026 losses from this segment will reach the upper end of the previously projected $250 million to $300 million adjusted EBITDA investment range. FanDuel Predicts has expanded nationwide to offer financial, economic, and commodities contracts, and launched sports-related prediction products in 18 non-sportsbook states—including California, Texas, and Florida.

In April, Flutter introduced the unified “One App” FanDuel platform. Users in states with regulated sports betting, as well as those in states without such regulations who access prediction markets, can now use a single app to access both services.

Jackson described prediction markets as “a very attractive, incremental opportunity”. He added: “Our in-house expertise and capabilities position us strongly to capitalize on this opportunity in the long term.”

Outside the US, Flutter delivered a notably stronger performance. International revenue climbed 27% to $2.541 billion. Southern Europe and Africa saw revenue jump 110% to $940 million following the acquisition of Snai in Italy, while Brazil revenue soared 722% after integrating Betnacional.

Brazil continues to be a strategic priority ahead of the FIFA World Cup. “We are investing with conviction in Brazil,” Jackson stated. “We believe this is a market where we can build a local champion over time. We will soon integrate our proprietary pricing systems, launching a top-tier parlay product and enhancing promotional offers ahead of the World Cup.”

Flutter also restructured leadership within its US operations. Dan Taylor, newly appointed CEO of Flutter International, now serves as President of Flutter Entertainment and oversees FanDuel. Christian Genetski will take charge of the US business following Amy Howe’s departure.

Citizens analysts observed signs of strain in the US operation despite international gains.

“The business is showing signs of cracks, which we believe are not necessarily structural,” the analysts commented. “The World Cup and prediction market investments now present significant challenges for the US business.”

Citizens forecasts suggest approximately 72% of Flutter’s projected 2026 US EBITDA will need to be delivered in the fourth quarter. Despite this, the brokerage maintained its “Market Outperform” rating and described Flutter as “dramatically undervalued.”