Flutter Lowers 2024 Forecast Amid NFL Betting Upsets

Flutter Entertainment, the owner of FanDuel, Paddy Power, and Betfair, has lowered its revenue and profit forecasts due to an unusually favorable NFL season for bettors, with the highest rate of favorites winning in nearly 20 years. The company expects a $438 million reduction in gross gaming revenue, leading to a $390 million drop in U.S. revenue and a $260 million decrease in adjusted EBITDA from November 12 to December 31, 2024, resulting in a full-year U.S. revenue expectation of $5.78 billion, down from previous guidance of $6.05 to $6.25 billion. Despite these U.S. losses, Flutter reported positive momentum in its UK and Ireland operations, driven by favorable outcomes in the English Premier League, resulting in a 1% increase in revenue and 2% in adjusted EBITDA outside the U.S. The company maintains confidence in its long-term growth prospects, anticipating the U.S. market will significantly contribute to expected profit doubling by 2027.