Increased Full-Year Outlook for Flutter in Q2 2025 Due to a 25% Rise in EBITDA
Flutter Entertainment's Q2 2025 Results and Prediction Markets Exploration
Flutter Entertainment, the global online betting and gaming company, reported strong financial results for Q2 2025, with a 25% year-on-year increase in adjusted EBITDA to $919m. The company's strategic focus on regulated markets is paying off, as international operations delivered an impressive 15% year-on-year revenue growth to $2.4bn, and a 13% increase in adjusted EBITDA to $591m.
In the US, revenue surged by 17% year-on-year to $1.8bn. Sportsbook revenue increased by 11%, while iGaming revenue jumped by 42%. Notably, Flutter completed the acquisition of Snai, making it the largest operator in Italy.
However, net income dropped 88% due to one-off charges and higher taxes. Analysts Regulus Partners and Truist offered mixed views on the organic performance in Q225. Regulus Partners pointed out that Flutter's 17% US growth significantly lagged behind that of DraftKings and BetMGM, while Truist cited a "strong beat" in Q2, particularly in the US.
Looking ahead, Flutter has upgraded its full-year 2025 guidance, expecting group revenue and adjusted EBITDA of $17.26bn and $3.3bn at the midpoint, representing 23% and 40% year-on-year growth, respectively. This upgrade incorporates various factors, including a $100m positive impact from US sports results, savings from the renegotiated Boyd market access deal, and the anticipated Missouri launch.
In a strategic move, Flutter is carefully evaluating the potential opportunities prediction markets may present for its FanDuel platform. The company is monitoring regulatory developments and assessing how opportunities could integrate with its existing operations. However, Flutter remains cautious due to regulatory uncertainties and the fast-evolving nature of prediction market regulations, especially in the U.S.
CEO Peter Jackson reiterated that Flutter has experience operating the world's largest betting exchange, the Betfair Exchange, which has similarities to event contracts relevant to prediction markets. Flutter has important stakeholders to consider when assessing prediction markets, and no explicit future investment commitments in this area were detailed in the latest reports.
In other news, Flutter also closed its deal for NSX in Brazil and acquired the remaining 5% stake in FanDuel from Boyd Gaming. The company will introduce a $0.50 per bet fee in Illinois starting 1 September to offset rising gaming taxes.
In conclusion, Flutter Entertainment's Q2 2025 results demonstrate the company's strong performance in regulated markets, with a focus on innovation and expansion. The exploration of prediction markets represents a potential future growth avenue, contingent on favorable regulatory environments.
- Flutter Entertainment, while demonstrating strong financial results in Q2 2025, is carefully evaluating the potential opportunities prediction markets may present for its FanDuel platform.
- The company's strategic focus on regulated markets and its expansion into new territories has led to an impressive 15% year-on-year revenue growth in international operations.
- In the US, sportsbook revenue increased by 11% and iGaming revenue jumped by 42%, highlighting the company's diversified revenue streams.
- Looking ahead, Flutter has upgraded its full-year 2025 guidance, with expectations of significant year-on-year growth in revenue and adjusted EBITDA, partly due to the anticipated Missouri launch and a positive impact from US sports results.
